FHA Flooring Requirements

[Tawfik Ahdab]

"I did not say FHA required it. But since it is a URAR lending form, it is required for that set of users "

Ms Grant, just because FHA has accepted the URAR form to communicate appraisals delivered to HUD does not obligate HUD to follow the GSEs' ANSI edict. The URAR itself is silent about ANSI. So which set of users doing FHA appraisals are required to ANSI standards? Please enlighten me. No snark here... just seeking eternal enlightenment. I wouldn't want to be performing FHA appraisals wrong for the 32 years I've being doing them.

 

[J Grant]

"I did not say FHA required it. But since it is a URAR lending form, it is required for that set of users "

Ms Grant, just because FHA has accepted the URAR form to communicate appraisals delivered to HUD does not obligate HUD to follow the GSEs' ANSI edict. The URAR itself is silent about ANSI. So which set of users doing FHA appraisals are required to ANSI standards? Please enlighten me. No snark here... just seeking eternal enlightenment. I wouldn't want to be performing FHA appraisals wrong for the 32 years I've being doing them.

I am not representing that FHA requires ANSI, so if you do not want to use ANSI measurements on FHA , go ahead -
My comment was meant in the context that a lender as well as FHA is an intended user, and lenders using URAR forms are requiring ANSI. I did not mean you btw referencing snarky - it was the two in the peanut gallery who I usually keep on ignore !

 

[Tom D]

When any part of a finished level is below grade, the Appraiser must report all of that level as below-grade finished area, and report that space on a different line in the appraisal report, unless the market considers it to be Partially Below-Grade Habitable Space.

That is the answer to split level homes you idiot fannie ansi savants who say it isn't. I gotta remember this for my splits comments.

 

[J Grant]

That is the answer to split level homes you idiot fannie ansi savants who say it isn't. I gotta remember this for my splits comments.

The market does not determine what is above and below grade the site and house ; physical characteristics determine it, we are supposed to report it the way ANSI instructs ( when we use ANSI ).

Partially below grade, per ANSI is to be reported as below grade? ( if I am wrong, no problem with that - but what exactly does ANSI say on the issue )

I am not defending that call by ANSI but it is what it is.

Of course, the market determines the value of an area that is physically artial below grade . And we can explain it, perhaps something like this:.

"Per ANSI, the 800 sf family room of teh split level subject is not included in living area sf GLA because it is partly below grade and ANSI considers it as below grade with instructions not to include it in the GLA living area..

However, the market considers the partially below-ground level family room utility as equivalent to the other areas of the dwelling. The family room is reported as a line item and adjusted for its contributory value."

 

[Zoe]

Well, i would let it go, unless it's a tripping hazard.
However, get a stip as to, does the missing flooring have an affect on value, and does it need to be fixed.

If you can see in the photo the missing parts then you have 2 choices.

So your options, patch the dam floor issues, or comment on why it isn't a meaningfull issue.

It very well could be a trip hazard. The owner could just rip it all up and finish the subfloor or replace it with the cheapest finish possible. I have seen some finished concrete that cost way more than hardwood or whatever. Very time intensive in labor. Like an artist that finishes some floors in those situations. Tons of labor time.

 

[Zoe]

I would not count it as anything other than "Other" - it's not GLA. It is an off-grade area. It's nothing to count a bedroom in. Good luck adding a supportable value.

Yeah, important part. I knew a guy that had a room downstairs totally below grade. Had wood burning pot stove in there and only access was stairs from main level. Not a good situation. I would not even want to stay down there very long. Especially asleep. Not a bedroom. It was finished nice. Not a bedroom.

I think he sold it on like an assumable loan. That didn't turn out well is what I heard. In essence he was cosigning the new loan. I don't think it turned out well. I think he basically had to buy the house again and resell it. I think he lost money on it.

 

[Zoe]

FHA uses ANSI as part of URAR and ANSI says bare concrete floors are not counted as living space, besides any below-grade basement issues.

It is not finished. Simple fix. If they can't finish the floor, the bank don't need to lend on it or need to loan them money to finish the floor. Picture bank owning the property as of effective date. Would they want the floor unfinished to sell the subject?

Appraiser, you knew all of this was not finished. What is wrong with you?

 

[Zoe]

I am bad sometimes on trip hazards. I will ask carpet to be stretched so there is not like several trip hazards in the carpet. Easy fix. Okay, we are done.