Is it a Fannie reg to have a heat source

[ROBERT JONES]

My subject is a 1.5 story dwelling. The 2nd floor is finished with no heat duct or electric baseboard strip. This is the "2nd" bedroom. The room was warm today (external temp 30's). I looked at the online version of Fannie Mae selling guide and found nothing that states that a heat duct or other source is needed. Does anyone have knowledge of such a rule and where I could recite it?

 

[Kevin A. Spellman]

If it is typical of the market the secondary market, FNMA will buy it. The absence of heating element should be handled separately with a curable functional adjustment for the cost to install strips of electric baseboard. It becomes a lenders decision to request the installation of the heating elements.

 

[Couch Potato]

Did you inquire about the heat source or just assume there was none because you did not see it? Not all heating methods would be visible.

 

[Mztk1]

A house without heat, one room or an upper level like in your case, is not typical in Jersey. Without CAC yes, but not heat.

Per Fannie:

If there is market resistance to a property because its improvements
are not compatible with the neighborhood or with the requirements of
the competitive market--because of adequacy of plumbing, heating,
or electrical services; design; quality; size; condition; or any other
reason directly related to market demand--the lender should
underwrite the mortgage more carefully and, if appropriate, require
more conservative mortgage terms.

Your upper level, if you didn't overlook the heat source, would not be viewed the same as a similar house with heat on the upper level. You have to mention it, look for the affect on value, likely not consider the area as living area but give it weight as potential living area, and explain. I'm sure you can find other one level capes with the upper level ready for GLA. They are common enough.

 

[Webbed Feet]

Mr. Jones,

In climate areas needing heat, this means pipes can freeze without it, having to have a primary heat source in every room has been a long standing underwriting requirement with every major bank I have ever worked for as an independent appraiser.
For many years when I found no heat source, and required one installed, I have never been asked to cite my source for underwriting.

They already know it's required. or they should.

Webbed.

 

[Ray Miller]

In the area I cover gravity heat is acceptable. A number of the older farm homes have vents in each bedroom where the heat flows up through the vent in the floor. Quite common years ago.

I am seening some new homes in the rural area consturcted with in floor heat in the basement or lower level and use gravity to heat the upper levels. Most have a wood burning boiler outside and hot water is piped to the in floor heat.

 

[Mztk1]

The country is big and guidelines are national. Fannie isn't going to have a line that says you MUST have a heat source. There are houses in my market without heat that are acceptable by the market and therefore accepted by the guidelines. It all comes down to location and market acceptance. NJ is not near nor in the sub-tropics. When I appraised there heat was necessary in all markets...unless things have changed due to global warming and newer houses are being built without heat, the area needs to be heated, based on fannie's quote above about market acceptance.

 

[Marcia Langley]

The country is big and guidelines are national. Fannie isn't going to have a line that says you MUST have a heat source.

I agree it will depend on part on the climate. My winters have times that are almost as cold as NJ and some second level rooms are comfortable year round from gravity heat. And some rooms that do have HVAC vents are too cold to inhabit without supplemental heat sources. I use my best judgement on a case by case basis.

 

[Mike Kennedy]

In NJ - Building & Zoning Department, C.O. verification for conversion of unfinished attic into GLA.

 

[Don Clark]

In the area I cover gravity heat is acceptable. A number of the older farm homes have vents in each bedroom where the heat flows up through the vent in the floor. Quite common years ago.

I am seening some new homes in the rural area consturcted with in floor heat in the basement or lower level and use gravity to heat the upper levels. Most have a wood burning boiler outside and hot water is piped to the in floor heat.

Same here Ray. The older 1.5 Story Cape style homes originally did not have a heat source on the second floor. many still do not have a heat source on the second floor. As you noted, as heat rises it is vented to the second floor. No lack of market acceptance here.