FHA/usda - Earth Contact Mpr

[PerseverancePLUS]

Does anyone have experience with earth contact/earth berm homes with rear rooms that have closets, and windows but windows do not meet size or distance from floor for egress? Is an earth contact home viewed the same as basement requirements? Do you consider this a functionality problem as the market in a rural area wouldn't care at all - unless of course they can't get an FHA/USDA loan because of it.

 

[timd354]

Does anyone have experience with earth contact/earth berm homes with rear rooms that have closets, and windows but windows do not meet size or distance from floor for egress? Is an earth contact home viewed the same as basement requirements? Do you consider this a functionality problem as the market in a rural area wouldn't care at all - unless of course they can't get an FHA/USDA loan because of it.

The fact that the bedrooms do not have a sufficient secondary means of egress due to the windows being too small is a problem for FHA whether or not the home is a earth contact/berm home. Also, what do closets have to do with anything? I hope that you are not one of those people that believes in the myth that a room cannot be counted as or utilized as bedroom unless it has a closet.

 

[Noreen]

Does anyone have experience with earth contact/earth berm homes with rear rooms that have closets, and windows but windows do not meet size or distance from floor for egress? Is an earth contact home viewed the same as basement requirements? Do you consider this a functionality problem as the market in a rural area wouldn't care at all - unless of course they can't get an FHA/USDA loan because of it.

Good thread... I would contact your local HOC or ask HUD.gov via email so you have your guidance in writing. I would not even take for granted if this property qualified for FHA/USDA. Keep us posted.

 

[bnmappraisal]

I'm sorry I can't offer any advice PerseverancePLUS since I don't have said properties, but am interested in this. Good thread

 

[Mark K]

The last earth sheltered home I appraised had the same problem. Bedroom windows were about 2'x4', installed horizontally next to the ceiling, about 6' from the floor. I called the floor plan 6/0/2 and explained that it had two nice dens but that using them as bedrooms was violation of the fire safety code. There was psssing and moaning from the borrower and lender.

I finally compromised and revised the report with a Hypothetical Condition and subject to installation of proper ingress/egress windows and with a -$30,000 adjustment for the 'as-is' value for the cost to cure.

Local bank, they closed a few weeks later but the new owner did install the proper windows a few months later.

 

[PerseverancePLUS]

The last earth sheltered home I appraised had the same problem. Bedroom windows were about 2'x4', installed horizontally next to the ceiling, about 6' from the floor. I called the floor plan 6/0/2 and explained that it had two nice dens but that using them as bedrooms was violation of the fire safety code. There was psssing and moaning from the borrower and lender.

I finally compromised and revised the report with a Hypothetical Condition and subject to installation of proper ingress/egress windows and with a -$30,000 adjustment for the 'as-is' value for the cost to cure.

Local bank, they closed a few weeks later but the new owner did install the proper windows a few months later.

Sorry to hear. There's no issue with codes in this rural area, but I do have to consider FHA requirements. I'm going to see what they say, and, it can still be viewed as a safety concern. I can't make the public change these rooms to have bigger windows, and my market would not adversely react to small windows, regardless of the safety.

 

[Mark K]

There's no issue with codes in this rural area,......

My suggestion would be to call the local fire department and get their advice/opinion on the situation and the existence or absence of local fire safety codes. I also would put in the report, in large letters, a disclosure of the safety issue in using these rooms as bedrooms.

The local market may not care about it but I think you could have some potential liability problems if you call these rooms 'bedrooms' in your report and someone gets injured or killed in a fire.

Good luck.

 

[PerseverancePLUS]

My suggestion would be to call the local fire department and get their advice/opinion on the situation and the existence or absence of local fire safety codes. I also would put in the report, in large letters, a disclosure of the safety issue in using these rooms as bedrooms.

The local market may not care about it but I think you could have some potential liability problems if you call these rooms 'bedrooms' in your report and someone gets injured or killed in a fire.

Good luck.

Excellent advice. I had already decided that its a 1 bedroom not a 3 bedroom based on egress. I still have the email to HUD and when I get a response I will follow-up here.

 

[Terrel L. Shields]

Very difficult to take to secondary market, therefore, I see most "Underground" "berm" or similar homes suffer a functional obsolescence and are almost impossible to finance except via traditional bank with a shorter term loan (say 10 yr. w balloon).

 

[Sid Holderly]

Very few in this area and they are considered finished basements by County. "0" above ground living area makes financing restricted to local lenders.