lead based paint

[SUE HOBBS]

I have a refinance with cash out, appraisal.

House built in 1954. Note: No chipping or peeling paint observed

Because the house was built prior to 1978, do we still have to call for a lead based paint notification to be provided to the owner?

Thanking You In Advance!

 

[Pamela Crowley (Florida)]

Here is what I use for a FHA refi on the VC:

THIS IS A STREAMLINE REFI. OTHER THAN LEAD BASE PAINT ISSUES, THE DE UNDERWRITER HAS THE OPTION OF WAIVING VC INSPECTIONS AND NOTED REPAIR ITEMS. THE APPRAISER'S VALUE CONCLUSION IS BASED ON THE 'AS IS' CONDITION OF THIS PROPERTY.

5-a - Structure is ground level. No noted obvious infestation. WDO inspection and report would be ordered by the DEU for this Streamline REFI.

10-a - The air conditioning appeared to be properly functioning. As it is not safe for the heat pump to be turned on to heat during the summer months, it was not turned on. If further inspection of the HVAC system would be required, it must be done by a licensed HVAC contractor.

In the Reconciliation:

"This appraisal and the opinion of estimated value is made "As Is" and subject to the completion of any DEU ordered inspections and/or repairs on the attached VC sheet."

If there are repair or condition adjustments that I would make on a conventional, the adjustment is made on the grid and the appraisal is still 'As Is' and the VC referred to.

Look forward to others comments.

 

[rtubbs]

Sue, I don't believe the appraiser is responsible for a lead based paint notification being provided to anyone. If there is no defective paint just check so on the vc form.

 

[Jo Ann Meyer Stratton]

My understanding of all appraisals for HUD are that they are to be done "Subject to" with an attached VC sheet. The VC sheet creates a subject to situation. The underwriter then makes the decision for a streamline refinance of whether any of the repairs are completed or not. The underwriter can decide that only the lead based paint issue will be resolved and nothing else or everything or in between. If there are conditions on the VC sheet that could possibly affect the opinion of value, then the appraised value is "as repaired" or "subject to". So, the underwriter could end up making a loan based on an "inflated" value on a home in poor condition because the value is based on "average" condition; but that is an underwriter's responsiblity, not the appraisers.

 

[Larry Lyke]

Pam --

I was not aware that it's unsafe to turn on a heat pump unit during the summer.

Switching from air conditioning to heat pump is one of reversing the unit.

If one side works, the other probably does too.