FHA Townhome Appraisal - Hail Damage

[cbeckerstix]

I have a borrower who is U/C for a townhouse that was subjected to a hailstorm in Colorado.

The HOA has replaced the roof and gutters. Siding is being replaced by the HOA but not before closing.

Can the appraisal be done As/Is and not subject to?

 

[CGinMN]

It’s up to the lender. I would argue if it is being replaced by the HOA, there is likely little impact anyway.

 

[RSW]

The question is: Does it rise to the level of being an MPR required repair or not? If it does, then it is an automatically required repair. The HUD can not require the HOA repair the siding, but they can reject the property until the repairs are made. Sometimes a property just doesn't qualify.