Hankbook question

[pgerarde]

Help! 8O I am reading the handbook so I may take the FHA exam soon. One of the things I read sort of seems backward???

The maximum percent of commercial use permitted :

1 story building 25%
2 story building 49%
3 story building 33%

I know this is what is in the handbook, but it looks strange??? I would expect to see a two story at 33% and increasing for a 3 story to the 49%???! Does anyone know if this is a misprint? I do know that logic sometimes has no basis in what lender's want.... :?:

Thanks,
Patti in Arizona

 

[Larry Lyke]

Patti --

As perceptive as you are it was changed to that from:

One story building ---- 25%
Two story building ---- 33%
Three story building -- 49%

So you are reading the later version.

 

[Ben Vukicevich SRA]

Patti,

L is correct.

It seems strange but in 4150.2 REV 1, it was listed as 25/33/49.

A revision letter came out in 7/99 and states:

U.S. Department of Housing and Urban Development

Special Attention of: Transmittal for Handbook No.: 4150.2, CHG-1
Directors, Home Ownership Centers
Directors, Processing and Underwriting Issued: July 1, 1999
Division, Home Ownership Centers
Direct Endorsement Lenders

1. This Transmits

Changes to Handbook 4150.2, Valuation Analysis for Single
Family One- to Four-Unit Dwellings, dated July 1999

2. Explanation of Changes:

This handbook has been revised to correct several minor
errors in this new handbook. Specifically, the word
"location" has been changed to "site" on several pages noted
below under Filing Instructions. On pages 2-12 and D-25,
the size of stationary storage tanks in determining the
eligibility of a site has been changed from 100 gallons to
1000 gallons. (The change has also been made to the Notice
to Lender, HUD form 92564-VC, referenced in Handbook
4150.2.) The ownership information requirements of the
appraisal protocol on page D-1 have been revised to account
for refinance transactions. In addition, in Section B-1,
the percentage floor area used for commercial purposes
follows these standards:

- One story building 25%
- Two story building 49%
- Three story building 33%

This change corrects the reversal of the percentages for
two- and three-story buildings.

Remember, it doesn't have to make sense, it's FHA.

If you're taking the test soon, there is a website that has the answers for the 200 questions. Post if you want it. You can also check down further in the FHA/VA forum as someone else was looking for the 200 answers and I posted the website.

Ben

 

[pgerarde]

Thanks guys for the info. I sort of suspected that I was only supposed to memorize this info, not think too much... I just needed to confirm I was not "memorizing" a misprint....

I found the site with the questions and answers. Now that I've read the handbook, I will go through the questions. I hope to take the test next week.

And Ben, as I am new to the FHA side of appraising, I have to say your "walk throughs" posted articles on inspections of different areas has been very helpful (and gave me several chuckles...). I have moved from an area that was all city water/sewer into a rural area of septics and wells. I have books from the library on both that I am trying to plow through. (Hard to look for "observable" items if you don't know what to look for...)

Thanks again to you both.

Patti in "rural" Arizona

 

[Jo Ann Meyer Stratton]

Patty: I am curious--what part of "rural" AZ are you? As you can see from my address--I am from the center of the universe--which some people think is rural, but I think is heaven. And I can look at Mt Graham any time I want to!!

 

[pgerarde]

Hey Jo Ann,

I am located in Yavapai county, just outside of the Prescott area. (It took me a while to locate Safford on my map.) Yes isn't it lovely to have a view of the mountains. We are out in the country flatlands, surrounded by mountains. (I have a nice view from my desk of Flagstaff's mountain, Humphrey's Peak.) I'm sure am NOT in California's Silicon valley anymore. Your location looks even more "rural" than mine...? I've not been out that way yet. Made it as far as Apache Junction so far (just to visit family...too far out for me to appraise... :lol:

Patti in Arizona

 

[Jo Ann Meyer Stratton]

Patti:
You must be in Chino Valley and you have the tallest mountain and I have the third tallest mountain. Mt Baldy by Springerville is in between. Welcome to Arizona and to the Forum!

 

[bradellis]

Patti-

Yavapai county, eh? Good friend of mine is the assessor- Tony Martinez. Go into the office and say hi for me. A very knowledgeable guy who has run a large appraisal practice in the past. He is a national instructor for NAIFA and he and I taught the AVM course at the ed conference in Reno last October.

He will be of great help to you over time, I am sure.

Hey, JoAnn, don't be making fun of Mt. Baldy even though I look just like it! I look at it every morning from my dining room window!

Brad Ellis, IFA,RAA

 

[pgerarde]

Thanks for the info & intro Brad. As I am new to the area, I really do need all the help I can find. I go by and say "Hello" for you.

Thanks again,

Patti in Chino Valley :wink: