FNMA Roof Requirements

[residentialguy]

Fannie states the following
This is straight from FNMA's recent Q&A, September 2014


Q31. In what situations should a property be appraised “as-is” versus “as-repaired”?

The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations.

From the photo...would you make this subject to repair? Had they said, "These include", it would be a no-brainer....but they didn't make it concrete and said these MAY include... So, would some curled shingles situations NOT be included??? Here's the photo. I originally said subject to HO that they did not affect the safety, soundness, or structural integrity of the property based upon an inspection from a professional. Should I change this to subj to repair???... or if the contractor says it's ok, then show his report and state that an inspection by professional inspection said it's ok, therefore its it up to the lender's discretion and any decision shall be based upon his professional opinion, not mine, as I am not a professional roofer.

 

[Meandering]

The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property.


These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc.

If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations.

IMHO, worn, but not yet at the point of impacting the safety, soundness, or structural integrity of the property. Probably get another winter or two out of that roof.

 

[apt20]

Shows some wear. Any stains on interior ceilings? If not I'm with Marion.

 

[Pam Wyant]

If it were just one or two shingles, I wouldn't be as worried, but that roof doesn't look good to me. I think you are safe in making it subject to inspection. I'd just bear in mind that when that roof fails, likely in the not too distant future, since this is FHA the borrower may not have the money to have it fixed, hence you should have an ironclad report for when Fannie/Freddie has it reviewed as part of the foreclosure/buyback process.

 

[Michigan CG]

One good wind storm and that roof is 50% gone.

 

[residentialguy]

If it were just one or two shingles, I wouldn't be as worried, but that roof doesn't look good to me. I think you are safe in making it subject to inspection. I'd just bear in mind that when that roof fails, likely in the not too distant future, since this is FHA the borrower may not have the money to have it fixed, hence you should have an ironclad report for when Fannie/Freddie has it reviewed as part of the foreclosure/buyback process.

This is not FHA.

 

[residentialguy]

The buyer is going to re-roof and re-side (peeling paint on HBM).
They had to redo the foundation walls on the rear and side after they got my report showing that it was bowing in.

 

[J Grant]

Q31. In what situations should a property be appraised “as-is” versus “as-repaired”?
The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations.

Imo ...they phrased this as ; IF the appraiser believes (leaks, curled shingles etc) could affect safety and soundness/structural integrity...as usual it is a judgment call. This roof condition shows partial curling of a number of shingles with many intact. COULD the curled tiles affect safety and soundness? If you want to err on side of caution, make it subject to repair. If not, then recommend an inspection as roof is adequate at present time, let an inspector determine.

How did you get up to roof to see the shingles and take photo?

 

[residentialguy]

Camera zoom

 

[J Grant]

Could go either way, as is with recommend inspection or subject to. I might be inclined to recommend inspection but that is imo only.

Would a repair constitute tacking down the curling shingles vs replacing them?