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FHA Multi-family Review

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Cindy Manning

Freshman Member
Joined
Aug 20, 2002
Professional Status
IT Professional-Appraisal Related
State
Massachusetts
I was given an FHA multi-family to review. The report was completed on the form 1025, small res. income property.

Page 5-1 of the FHA handbook stated that the URAR form, VC Form and Homebuyer summary are required for a complete HUD appraisal package. Is reporting a multi-family on the 1025 with allowed? Also, the lender is requesting this as a desk review. I assume the Residetial Appraisal review Short form 2006 is appropriate, not the FHA form 1038, which would be ordered by FHA.

Of course this is needed yesterday and the lender does not know the answer to these questions. Thanks for any help.
 

Cindy Manning

Freshman Member
Joined
Aug 20, 2002
Professional Status
IT Professional-Appraisal Related
State
Massachusetts
FYI I got in touch with the right person at FHA who stated that the form 1025 would be rejected by FHA, All reports are to be on the 1004. Also reviews are to be on whatever the lender indicates. The form 1038 is for FHA ordered reviews only. I thought that was the case, just wasn't sure if there were exceptions to the rule.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Cindy,

The FNMA Form 1025 Small Income Property Form is acceptable to FHA. Don't "kill" the FHA appraiser on the review for using that form or you're going to be embarassed. The FNMA condo form is also acceptable for condominiums

The FHA appraiser has the option of using the URAR or the 1025. If the property is a 3 to 4 family, the URAR must be used with the FHA GIM form available on their website.


Ben
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Cindy

Here's the stuff from the HOC Reference Guide


Chapter 1
Appraisal & Property Requirements
Page 1-03

When using the URAR for three and four unit properties the appraiser is to complete the Gross Rent Multiplier calculations and analysis. If the FNMA 1025 - Small Residential Income Property Appraisal Report form is used then completion of the GRM section on the form is acceptable. Click for access to the recommended GRM Form and GRM Sample. See HUD Handbook 4150.2, "Income Approach".



Maybe you should tell your HUD contact to read it :D :D

Ben
 

Brad Pack

Junior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
California
Ben has given you the correct answer(s). Reference Mortgagee Letter 97-22.
 

Cindy Manning

Freshman Member
Joined
Aug 20, 2002
Professional Status
IT Professional-Appraisal Related
State
Massachusetts
Thanks a lot, the person I contated a the HOC in Philly, clearly stated that the report would be rejected unless on the 1004..... must be new to the job.
 
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