FHA, Kitchen and shower in basement

[J Grant]

There like tiny homes everything has to be utilized- often a small Loft in A-frame for storage or kids.

Are they cheap to build? I assume they are unless made out logs or fancy

I think they make cute vacation houses. I've seen them used here for regular houses- not horrible or anything, just weird awkward layouts, which some people don't seem to mind.

 

[Amy Perkins]

I have an FHA file that is A-Frame in style with 950 sf GLA and 1350 sf fully below grade on 3 sides, it is a full walkout on 1 side. The A-frame level has 2 bedrooms, family room, and a 1/2 bathroom with the basement having 2 auxiliary rooms, a bedroom, kitchen and 2 full baths. For clarification, the only full baths and kitchen are below grade. If this was on a lake front lot there may be similar properties, but nothing in this area.

The subject is in a rural county that is lax on rules and regulations, but this still atypical for the market. Going back 18 months for research in 3 counties has yielded no similar comparable.

Any advice?

Any below the grade area goes in the basement area. Find another basement to bracket. Describe it as Rustic and use something else that is rustic, like a log cabin and also call it all rustic to bracket. If you use a a very nice sloping property near a lake that has a subterranean finished basement do no adjustment or do a reverse adjustment if really nice, to bracket your kitchen. You don't need another kitchen, just say could not find another kitchen in a basement in the comments. Say if lender has another comp with a kitchen in the basement please provide. If they come up with one, use it, but they won't and at least you bracketed the value. Do not put subterranean GLA on the main line. Many realtors will include the basement as GLA if nice so you're going to have to search and click on the co record, look for larger GLA, converted garages etc... look for higher GLA with remarkably lower prices, it's where you will find them

 

[BRCJR]

B4-1.3-05. Sellers guide….

Gross Living Area​

The appraiser may need to deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. For example, a property built into the side of a hill where the lower level is significantly out of ground, the interior finish is equal throughout the house, and the flow and function of the layout is accepted by the local market, may require the gross living area to include both levels. However, in such instances, the appraiser must be consistent throughout the appraisal in his or her analysis and explain the reason for the deviation, clearly describing the comparisons that were made.

 

[Dublin ohio]

B4-1.3-05. Sellers guide….

Gross Living Area​

The appraiser may need to deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. For example, a property built into the side of a hill where the lower level is significantly out of ground, the interior finish is equal throughout the house, and the flow and function of the layout is accepted by the local market, may require the gross living area to include both levels. However, in such instances, the appraiser must be consistent throughout the appraisal in his or her analysis and explain the reason for the deviation, clearly describing the comparisons that were made.

What date is your source. The most recent does not have that verbiage

B4-1.3-05, Improvements Section of the Appraisal Report (09/06/2023)

selling-guide.fanniemae.com

 

[BRCJR]

What date is your source. The most recent does not have that verbiage

B4-1.3-05, Improvements Section of the Appraisal Report (09/06/2023)

selling-guide.fanniemae.com

https://singlefamily.fanniemae.com/media/30266/display

Standardized Property Measuring Guidelines (July 2022)

Updated guidance including some new and substantively revised FAQs Appraisers are now required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®) measuring standard for measuring, calculating, and reporting above and below grade square footage(s) to determine gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later on loans sold to Fannie Mae. All footprint sketches and floor plans must be computer-generated (not hand-drawn), indicate all the dimensions needed to calculate the above/ below grade and finished/unfinished square footage of each level and other areas such as a garage, and show the calculations to demonstrate how the square footage was derived.

Is there an exception process?

If the appraiser is unable to adhere to the ANSI standard, the appraiser will provide the code “GXX001-” in the Additional Features field on the appraisal form and must explain why compliance was not possible. For example, berm homes with their entire square footage below grade would be eligible for an exception. The appraiser must provide justification for an exception and lenders are responsible for confirming the appraiser provided an adequate explanation. Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage).

 

[Logan1111]

Has it had a previous sale you can compare it to other properties at the time of the prior sales?

It did, just before the pandemic. The numbers show it was at a discount for the overall sf in the market, I just don't know how much was for unique style, kitchen, condition, etc.

 

[Logan1111]

Are they cheap to build? I assume they are unless made out logs or fancy

I think they make cute vacation houses. I've seen them used here for regular houses- not horrible or anything, just weird awkward layouts, which some people don't seem to mind.

I have not ran the numbers for the cost approach yet. I believe it will be similar to a standard ranch style with basement, I do not see a savings in lumber, and I believe with this style, roofing is much higher.

 

[Logan1111]

I feel that the general consensus is that the kitchen being located in the basement is not of the greatest concern considering the level of finish for the basement and the flow of the layout. The flow and layout is normal, if only it was above grade.


Thank you for all the great comments, opinions, and resources. I appreciate your time.

 

[Dublin ohio]

https://singlefamily.fanniemae.com/media/30266/display

Standardized Property Measuring Guidelines (July 2022)

Updated guidance including some new and substantively revised FAQs Appraisers are now required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®) measuring standard for measuring, calculating, and reporting above and below grade square footage(s) to determine gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later on loans sold to Fannie Mae. All footprint sketches and floor plans must be computer-generated (not hand-drawn), indicate all the dimensions needed to calculate the above/ below grade and finished/unfinished square footage of each level and other areas such as a garage, and show the calculations to demonstrate how the square footage was derived.

Is there an exception process?

If the appraiser is unable to adhere to the ANSI standard, the appraiser will provide the code “GXX001-” in the Additional Features field on the appraisal form and must explain why compliance was not possible. For example, berm homes with their entire square footage below grade would be eligible for an exception. The appraiser must provide justification for an exception and lenders are responsible for confirming the appraiser provided an adequate explanation. Fannie Mae will monitor for inappropriate use of exceptions (i.e., using methods other than the ANSI standard for homes that have typical above-grade square footage).

That was my point. Not the same as you originally posted.

 

[Dublin ohio]

I feel that the general consensus is that the kitchen being located in the basement is not of the greatest concern considering the level of finish for the basement and the flow of the layout. The flow and layout is normal, if only it was above grade.


Thank you for all the great comments, opinions, and resources. I appreciate your time.

The real problem is demonstrating marketability. Not flow or layout.