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FNMA 90% Complete for New Construction?

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jonhig

Sophomore Member
Joined
Nov 1, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I know for FHA new construction the subject must be at least 90% complete for an "as-is" appraisal. Is this the case for FNMA as well? I could not find the answer on their website. The sujbect has no sinks or toilets. Everything else is done.

thanks
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I thought the house had to be livable and the cost of completion had to be less than 2% of the sale price or market value whichever is lower. But I am working off memory.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Read section 202 of the Selling Guide (efanniemae.com).
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
For an FHA appraisal that is 90% to 99.99% complete the appraisal has to be made "subject to" not as is. Read Appendix D, Page D-1.

B. “Subject to Completion per Plans and Specifications”
1. Proposed Construction where construction has not started, or
2. Under Construction but not yet complete (less than 90%), or
3. Regular 203(k)

C. “Subject to the following Repairs or Alterations”
1. Repair or Alteration Condition(s) noted by the appraiser, or
2. Streamline 203K, or
3. Under Construction, more than 90% complete with only minor
finish work remaining (buyer preference items i.e., floor
coverings, appliances, fixtures, landscaping, etc.). This
eliminates the need for construction exhibits.
 
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