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FHA QUESTON ON 1-4 UNITS

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Bob Henderson

Thread Starter
Freshman Member
Joined
Jan 27, 2002
A FRIEND NEEDS A QUICK ANSWER. HE IS DOING A FOUR UNIT RESIDENCE. THE BUYER WILL BE LIVING IN ONE OF THE UNITS AND ALTHOUGH RENTING THE OTHER THREE UNITS IS NOT DEPENDENT ON THE INCOME FOR THE PURCHASE. HE HAS IN HIS POSSESSION A PREVIOUS HUD APPRAISAL PREPARED ON A FNMA 1004 WITH NO OTHER FORMS FOR RENTAL INCOME, OPERATING STATEMENTS ETC.. HE WANTS TO KNOW IF HE CAN INDEED PERFORM THIS APPRAISAL AS THE PREVIOUS ONE. THAT IS ON THE 1004 WITH NO OPERATING/INCOME STATMENTS OR RENTAL ADDENDUM? YES THIS IS A HUD PURCHASE. CAN YOU SITE THE PAGE AND NUMBER FROM THE FHA BOOK PLEASE. THANKS.
 

Ben Vukicevich SRA

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

Page 4-12 shows him what's required. It's under Section 4-7 Income Approach.

You can do the 4 unit on the URAR but now I understand you must use the nationally accepted GRM form which was originally created by the Santa Ana HOC to complete the Income Approach on the URAR. That form can be downloaded from HUD's website. I haven't had much luck today or during the weekend as none of HUD's links are working.

He can always use the FNMA 1-4 form, if he wants too. HUD will take that one in lieu of the URAR+the GRM form. I think the URAR route is much less work.

Ben
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Bob --

I'm one of the more dense people in this Forum, so you'll have to convince me as to why a Purchasor who does not need any income from a 4-plex is purchasing same via FHA financing.

IT DOES NOT MAKE SENSE, because: MIP is a pretty hefty upfront cost. And if he's going to pay that in cash, then that's plain out double stupid.

If he's low on cash, it'd be cheaper to get a loan from a bank for a larger down payment than FHA requires..

In any case, for FHA you can do a 4-unit on the URAR 1004 with Operating Income Statement. NOW, the UW may have her own personal favorite way to do it, like photos of Rentals Comps and Listings, and the latter gridded possibly.

Just your friendly inquistior.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Hey L.

Hop over to the FHA/VA forum here, we need your input there on our new FHA thread. It's kind of like your old "Word for the Week" posts but these are sure to draw blood.

You stated to Bob that the 1004 with an OIS is OK. Not anymore. I was trained to use FHA's old Supplemental Income Form, like you on 3-4 units, shown in the HUD handbook but it seems HUD has now adopted Santa Ana's method of using the GRM form with no OIS. Confusing as all hell, isn't it?

I think we discussed this ages ago on the NAIFA forum and one of the west coast guys, Brad Pack or Brad Ellis brought it to my attention that only the GRM form is needed now.

So it would be the URAR plus the GRM form posted on the HUD website/link above for 3-4 units.

Hope to see you on the FHA/VA forum with some input from the north where there's ice dams to contend with on those roofs.......

Ben
 

Bob Henderson

Thread Starter
Freshman Member
Joined
Jan 27, 2002
Thanks to all for the help. I don't have a clue why the puchaser is doing this. Not my deal. I have forwarded the replies to my friend. He also called HUD....don't have his answer yet. Thanks again for helping.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Ben V --

Where's the FHA/VA Forum you invited me to.

I've checked out NAIFA and it ain't dere!
 

Ben Vukicevich SRA

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

Sorry about that. I'm losing my mind and forgetting which damn forum I'm in when I post, now that there are so many here.

I want you in this FHA/VA forum on this site to help along with the topics we're going to discuss. You already commented on the VC9 (Roof) condition/inspection process so that topic is covered.

There doesn't seem to be too much interest in the FHA inspection process so the idea may just die an unnoticed death.

Hey, you and I know what we have to do on an FHA so I guess that's all that really matters.........

Ben
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Ben, Larry,

Please continue to post on the FHA/VA forum! Even though I don't post much, it's due to lack of experience/expertise - NOT a lack of interest! I have learned so much from this forum already that it's amazing I survived before I found it. I feel certain there are many who would like to be the best appraiser possible, but don't have access to knowledgeable mentors (or one who cares). We may not say much, but we sure depend on those who have been there before us for support and reassurance that we're heading in the right direction. Sheesh, now you guys are gonna want consultant's fees..........

Thanks for listening!

Wally
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Wally --

You're right in one major way.

Every time somebody disagrees with me I learn somethng: Either I'm right, or half right, or wrong!
 
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