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FHA Requires 2 Sales That Support Value?

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ROBERT JONES

Junior Member
Joined
Feb 12, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
I received this from an Underwriter - "
Per FHA guideline the appraised value must be supported by 2 closed sales that is similar to subject, currently only comp 3 supports the value. Provide an additional closed sale that supports the value or adjust the value so that at least 2 comps supports it. Thank you

I supplied 4 settled comps $149000-$163,000 - two UC comps - One has since settled at $170,000

Sales bracket the subject's GLA, the Sales price, and the condition.

So if the FHA needs two sales that support that means they need a sale that matches the Selling price or exceeds the sales price per this UW. Does anyone have any insight on this?
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I received this from an Underwriter - "
Per FHA guideline the appraised value must be supported by 2 closed sales that is similar to subject, currently only comp 3 supports the value. Provide an additional closed sale that supports the value or adjust the value so that at least 2 comps supports it. Thank you

I supplied 4 settled comps $149000-$163,000 - two UC comps - One has since settled at $170,000

Sales bracket the subject's GLA, the Sales price, and the condition.

So if the FHA needs two sales that support that means they need a sale that matches the Selling price or exceeds the sales price per this UW. Does anyone have any insight on this?

Ask them to provide the FHA guideline that says that. In some markets there are not any sales that would support a specific value but more likely a range of value.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
As Don said ask them for page and paragraph. FWIW start reading @ page 519 of 4000.1. No such verbiage found.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I have not heard of that as an FHA specific guideline...however an individual UW or lender can be more demanding about the support for a value ...if it is not there in a report, their choice, they can decline to lend or they can order a new appraisal if they feel original appraisal is so deficient they can't rely on it )

What was the approximate $ amount value you concluded from the sales?
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
FHA should be offering this VA program to its lenders-


Greetings,

The purpose of this communication is to announce that the Department of Veterans Affairs (VA) Cleveland Regional Loan Center (RLC) will be holding two on-site VA Home Loan informational sessions in April.

The first session will be Wednesday, April 12, 2017, from 9:00 am – 3:00 pm in Manchester, NH. To register, please click on the following link:

https://www.eventbrite.com/e/VA-home-loans-training-tickets-32359150089

The second session will be Thursday, April 27, 2017, from 9:00 am – 3:00 pm in Cleveland, OH. To register, please click on the following link:

https://www.eventbrite.com/e/VA-home-loans-training-tickets-32358987603

These information sessions will cover the full VA Home Loan program and are designed for processors, underwriters, loan officers, and post-closing personnel. We will be covering everything from eligibility, entitlement, ordering VA appraisals, VA funding fees, underwriting, closing, and post-closing issues. It is important to note that this is not appraiser training, nor will it satisfy any of the requirements for becoming a Staff Appraisal Reviewer (SAR). Class size is limited to 35 attendees. Please do not register for this training if you are uncertain if you will attend. Classrooms fill up quickly and we are looking to minimize the number of "no-shows" so we can deliver the training to the maximum number of people. Please note VA will not provide lunch as part of these sessions, but attendees are welcome to take lunch on their own during the scheduled lunch break.



Sincerely,



Loan Guaranty Service
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
In some markets there are not any sales that would support a specific value but more likely a range of value.

The reality is we are tasked with providing a point value/specific value, not a range of value. The point value is not to be based on speculative support, but on credible support which includes closed sales.

Since FHA is a very low $ down and vulnerable relative to property value, the UW may look harder at a price with weak support..
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Offer to bet him $100 that it isn't a requirement.
 
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