I had read it but it still remains unclear to me whether or not the owner- occupant unit gets charged for expenses. The form says no income should be counted for the owner-occupied unit but there is no mention of the treatment of expenses for that unit.
General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter. The applicant must
complete the following schedule indicating each unit's rental status, lease expiration date,
current rent, market rent, and the responsibility for
utility expenses. Rental figures must be based on the rent for an "unfurnished" unit.
The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for
the past two years (for new properties the applicant's projected income and expenses must be provided). This Operating Income Statement and any
previous operating statements the applicant provides must then be sent to the appraiser for review, comment, and/or adjustments next to the
applicant's figures (e.g. Applicant/Appraiser 288/300).
If the appraiser is retained to complete the form instead of the applicant, the lender must
provide to the appraiser the aforementioned operating statements, mortgage insurance premium, HOA dues, leasehold payments, subordinate
financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the
projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those
projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that
appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PITI and not calculated as an
annual expense item) Income should be based on the current rents, but should not exceed market rents.
When there are no current rents because
the property is proposed, new, or currently vacant,
market rents should be used.
