FHA Single Family? Three Kitchens

[TITAN1]

FHA Reverse Mortgage

Just Received An FHA Order For A Single Family With One Electrical Meter Which Has Been Devided Into Three 2/1's
With A Kitchen In Each Unit And Permits According To The Owner. The Zoning Is Single Family, Need Some Insight On How To Go About Doing This Appraisal.
Iv'e Never Come Across Something Like This, Anyone Out There With Some Advice?

 

[CANative]

IMO, "permits per owner" is not enough. Can you convert to a 3 unit property in the "Single Family" zoning district? If so, did they actually get permits and were the permits "finaled?" If not, then how could they have gotten permits?

You need to do some due diligence here. Call or visit the planning and building department and get "the rest of the story." Then you can figure out how to proceed.

 

[Greg Bell]

No FHA insurance for this one...

 

[TITAN1]

Thanks Guys. I Intend To Go To The Building Department And Check Everything Out Dut One Of The Questions I Have Is Will FHA Insure The Property? Greg You Say FHA Will Not Insure. Would You Happen To Know Where I Can Fid That?

 

[TITAN1]

Please Guys And Gals I Need Your Opinions On This!! Let Me Know What You Think . Has Anyone Ever Had A Situation Like This?

Thanks, All Replies Greatly Appreciated.

 

[CANative]

Are you appraising the property or are you thinking of making an FHA loan?

 

[Mary Tiernan]

I would explain the situation to my client and let them decide.

 

[RSW]

Sounds like this may be a little over your head. You may want to decline this order. There is nothing wrong in doing that. I have had several appraisals that I have declined due to not having the experience necessary to complete this assignment. If that is not the case then, I would proceed and charge a whole lot more to do it.

 

[TITAN1]

Thanks Mary And Rsw.
Rsw I Have Turned Down Assignments In The Past, Thats Not A Problem With Me.
Just Got Off The Phone With FHA And According To Them If The Units Are Rented Its A Triplex, If Not It Is A Single Family With 2 Accesory Dwelling Units.

 

[George Ellerman]

FHA Reverse Mortgage

Just Received An FHA Order For A Single Family With One Electrical Meter Which Has Been Devided Into Three 2/1's
With A Kitchen In Each Unit And Permits According To The Owner. The Zoning Is Single Family, Need Some Insight On How To Go About Doing This Appraisal.
Iv'e Never Come Across Something Like This, Anyone Out There With Some Advice?

It's obviously being used illegally for its current zoning.
Walk away.
You would be diving into a can of worms.