Is there a Fannie Mae Form for a 5 to 10 units complex?

[Steve Wyrick]

I have a lender request for a property with 2 duplex units and 1 SFR onsite, same parcel number, zoned for multiple residential uses. Lender is wants it done on a 1025 form, will probalby not be done for Fannie Mae Lender. Says to modify the report. They refuse to allow me to do a narrative which I would prefer.

My question is this. At one time the 71A Fannie Mae form was used for 5 to 10 unit complexs, this form has evidently been removed from Fannie Mae revised form list, IS THERE A FORM THAT I AM NOT AWARE OF FOR 5 TO 10 UNITS WITH THE NEW REVISED FANNIE MAE VERBAGE AND GUIDELINES FOR SCOPE OF WORK.

Second Question - Have any of you had a similar situation where you used the 1025 form and modified it to show a 5th unit? If you have how did you modify the form.

Thank you for your help.

 

[Restrain]

There is no 5+ Fannie Mae form, because Fannie does not have a 5+ form. Fannie does some limited lending on apartment complexes, but they get a regular commercial appraisal on larger projects. Forms are designed for the typical business of the Single Family (including 1-4 family unites) division.

 

[larryhaskell]

HUD-92264

Steve:

I took a quick look at the forms in Alamode and the closest I saw was the form listed above. Its not a fannie form though but they may accept it. Good luck.

 

[Steve Wyrick]

Thanks RStrahan and Larry Haskell,

Same results I had. Sometimes it is good to have fresh eys look and you did that and I really appreciate it.

Simply the lender does not know what they should have and have decided this is what they want. It is not going to Fannie Mae and by the time I am through with this form to please them it will look like a narrative and everything will be covered.

 

[larryhaskell]

Steve:

I'm bidding on a job now for a 5-plex and they want it completed on FHLMC Form 71B-Rev. 8/77 [2K]. I hope this might work for you.

 

[Steve Wyrick]

Larry,

Sounds like your lender at least is a little more competent than mine. The 71B form was an old form that evedently Fannie and Freddie decided they no longer need and thus has not been revised to reflect current SOW and changes in USPAP. One area in particular that is missing from the form is past sales history of subject and comparables, I think that is now a USPAP requirment, so beware you may need to add that information in the Addendum.

The 71B form specifically states for loan transactions not to exceed $750,000, third line on top of first page of the form in bold print. Nice thing about this form is that it is designed in such a way that it can cover a property of many more than 4 units simply by allowing for consolidation of similar units, ie 4 3bedroom 2 bath units each 950sf, whereas the 1025 form has individual unit line items.

Use of the 71A and 71B forms in my opinion for what I am doing would have been better, but lender was insistent.

Because of the lender/client specific request I had to add the following in my report just to CYA myself.

Pursuant to your request and requirement and the request and requirement of your Underwriter the appraisal will be reported on a "Small Residential Income Property Appraisal Report form", Freddie Mac Form 72, revised March 2005 and Fannie Mae Form 1025, revised March 2005. The appraiser has advised the lender and his underwriter that use of this report is intended to be used for a lending truncation of 2 to 4 Family Residential properties and that the subject is a 5 unit complex, including an owners home. Due to modifications to this report form this report form may not conform to Fannie Mae and Freddie Mac Guidelines. Lender and lenders Underwriter have both agreed and instructed the appraiser that they require this form and understand that its use may create a report that does not conform to Fanne Mae and Freddie Mac Guidelines.

Good luck just check on the revision of USPAP since 1977. Oh, yeah USPAP did not exist in 1977.

 

[larryhaskell]

for the stagecoach bank

Steve:

To be honest Steve I just did a quick look at the 71B form before I bid because I was just not familiar with the form and my wife and I were heading out of town camping. Kind of camping in our fifth wheel in the pine trees at Graeagle, CA. Thanks a bunch for the heads up on the form, I guess this must be an in house deal. I don't know if I will get the job though because I'm busy now so I try to bid them right.

 

[Brian Weaver]

Check your "retired" forms in your software for the FHLMC Form 72...that was the OLD 2 to 12 unit form - two-pager.

It's lame and you'll end up with a ton of addenda to make it work...but that's what we used back in the day.