• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Is a conv. comp required by FHA?

Status
Not open for further replies.

David in Alabama

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I was taught that a conventional (financing) comparable must be used when doing an FHA appraisal. Does anyone know if this is still/was ever true?

Thanks, David
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
David,

Wow. A blast from my past.,in the 1980's.

Yes, when the interest rate was set by FHA many moons ago and not the market, there was always the probability that the FHA financed sales would have higher sale prices due to points being added back-in to the sale price..so FHA did require a conventional comp so the little dummy appraiser would be able to see the effect of FHA financing on the sales prices of the comps and value accordingly.

Now that the rate is set by the market, all you have to do is adjust your sales for concessions, no matter what type they maybe.

Then you have the silly requirement about not using all comparable sales from the same subdivision on new construction because of possible builder financing/sales concessions inflating the sales prices of the units..like the competing builder in the adjoining subdivision isn't offering concessions if his competition is?????

Ben
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Ben as ALMOST always I totally agree. got several builders here, the underwriter wants be to be sure that all the houses are built by different builder's. Almost ALL of them had a different crew would that be same as different builder's Like K&B or Pulette pound nails.
 

David in Alabama

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks Ben.
I decided to submit the one I'm doing with all FHA comps. Its' been a hassle trying to find and use a suitable conventional when the immediate area is almost all FHA sales.
David
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks