FHA requirements for contents or verbiage in the appraisal report

[Michael Klinger]

I'm completing my 1st FHA appraisal in 15 years. I need suggestions for what verbiage that I need to include in the appraisal. I remember that there's special verbiage that I need to state regarding HUD Handbook 4000.1. Do I have to say that the appraisal is in compliance with HUD Handbook 4000.1?

Also, I am told that I need to insert a statement into the appraisal that relates to the old VC forms. Something that states if there were any issues with the residence regarding heat, water pressure, hot water, appliances, earth wood contact, adequacy of crawl space, roof, etc. I'm guessing at the points, but there's got to be something that simply states that all systems are fine without listing every single component of the house. Please provide any suggestions that you have.

If you have any other suggestions for the FHA, that I don't already do for the VA or conventional appraisals, please suggest.

What do they require now for measuring set-backs from property lines? Do they have any requirements about showing the drain field on the sketch? I've heard not.

thanks for your time.

 

[RSW]

There is no requirement for a statement about the old VC sheet.

 

[sputnam]

Right... the VC sheets are gone. Some Lenders require word for word specific statements about the property meeting MPS or MPR. FHA doesn't require the specific verbiage.. just that you say it.

 

[Michael Klinger]

There is no requirement for a statement about the old VC sheet.

I understand that the VC sheets are long gone, but they called out specific items that I believe the FHA wants us to address in the appraisal. I just had an appraisal rejected, because I didn't do it. What does the FHA want us to report in the appraisal today regarding many items that were on the defunct VC sheet?

 

[Michael Klinger]

Right... the VC sheets are gone. Some Lenders require word for word specific statements about the property meeting MPS or MPR. FHA doesn't require the specific verbiage.. just that you say it.

Just that, that the property does or doesn't meet the MPR and why, if it doesn't? That's super easy. What sort of word for word statements might lenders be requesting?

Also, do they expect us to measure the distance between the subject property and the property line on two sides? I have learned that they don't require us to identify the septic drain field on the sketch!

 

[RSW]

You need to read & re-read the 4000.1 handbook. A refresher FHA course would be helpful too. Going back and using the old VC sheet as a guide will help, but there are some things on the VC sheet which are no longer an MPR required repair.

 

[JTip]

More often than not the client's assignment conditions will provide you the exact verbiage they require for FHA reports.

 

[Tru Red]

I'm completing my 1st FHA appraisal in 15 years. I need suggestions for what verbiage that I need to include in the appraisal. I remember that there's special verbiage that I need to state regarding HUD Handbook 4000.1. Do I have to say that the appraisal is in compliance with HUD Handbook 4000.1?

Also, I am told that I need to insert a statement into the appraisal that relates to the old VC forms. Something that states if there were any issues with the residence regarding heat, water pressure, hot water, appliances, earth wood contact, adequacy of crawl space, roof, etc. I'm guessing at the points, but there's got to be something that simply states that all systems are fine without listing every single component of the house. Please provide any suggestions that you have.

If you have any other suggestions for the FHA, that I don't already do for the VA or conventional appraisals, please suggest.

What do they require now for measuring set-backs from property lines? Do they have any requirements about showing the drain field on the sketch? I've heard not.

thanks for your time.

You are a brave soul. I stopped doing all FHA when they had their last major revision of rules that made the appraiser a home inspector.

Good luck stepping back into that pool.

 

[glenn walker]

Just that, that the property does or doesn't meet the MPR and why, if it doesn't? That's super easy. What sort of word for word statements might lenders be requesting?

Also, do they expect us to measure the distance between the subject property and the property line on two sides? I have learned that they don't require us to identify the septic drain field on the sketch!

No but they did in 1985 : )

 

[Tom D]

i will help you
UTILITIES WERE ON, FUNCTIONING. NO APPARENT STRUCTURAL DEFECTS. MECHANICAL SYSTEMS VISUALLY ARE IN WORKING ORDER, FUNCTIONING. APPLIANCES ON, BUILT-INS & KIT CABINETS FUNCTIONING. ADEQUATE ELECTRIC SERVICE. HEAT SOURCE IS PERMANENTLY ATTACHED, VENTED TO OUTSIDE, CAN HEAT ALL AREAS W/PLUMBING TO MINIMUM 50 DEGREES, MEETS LOCAL CODE & ALL FHA/HUD REQUIREMENTS FOR HEAT SOURCES. THE FLAT ROOF AREA COULD NOT ADEQUATELY BE OBSERVED VISUALLY. NO LEAKS WERE NOTED INSIDE THE DWELLING. Smoke and carbon monoxide detectors were present the time of inspection.

The subject property meets the requirements of Handbook 4000.1.

need all the lot measurements on the front page, or a plat plan with them on it
you better catch any peeling paint, or safety hazard like no handrails.. they use magnifying glasses, i swear, when HUD does a post closing review
better mention the availability of schools, a map showing shopping, golf course, things of interest if there are any
if a flat roof, say you couldn't see it
every extra porch, patio, etc show measurements on the drawing
'uncovered patio' is their phrase, not mine
pictures of systems to prove that you actually may have looked at them
you really should read the parts of what they want in an appraisal. more like a narrative added to the 1004 form.
real comp photos you took
if a sale, they like you better if your have more repairs and just tell the home owner up front, it's easier that way. verbal note 'i don't make these rules, i just enforce them'

The intended use of the appraisal is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage (24 CFR § 200.145(b)). FHA and the Mortgagee are the intended users of the appraisal report. THE INTENDED USE IS TO EVALUATE THE PROPERTY, THAT IS THE SUBJECT OF THIS APPRAISAL, FOR FHA TO SUPPORT THE UNDERWRITING REQUIREMENTS FOR A FHA-INSURED MORTGAGE. NO ADDITIONAL INTENDED USERS ARE IDENTIFIED BY THE APPRAISER. ANY OTHER PARTY RECEIVING A COPY OF THIS REPORT FOR ANY REASON IS NOT AN INTENDED USER; NOR DOES RECEIVING A COPY OF THIS REPORT RESULT IN AN APPRAISER-CLIENT RELATIONSHIP. USE OF THIS REPORT BY ANY OTHER PARTY(IES) IS NOT INTENDED BY THE APPRAISER.

FHA Appraiser Roster Definition:
"Appraiser refers to an FHA Roster Appraiser who observes, analyzes, and reports the physical and economic characteristics of a Property and provides an opinion of value to FHA. An Appraiser’s observation is limited to readily observable conditions and is not as comprehensive an inspection as one performed by a licensed home inspector."