New construction question

[berad]

I'm doing an FHA appraisal on a new construction home. It's going to be done subject to completion per plans & specs... I've reached out to the lender for the HUD-92541. This was the response I received "It has not been received back from the builder yet. Is the appraiser able to complete the report now and use the builder cert later on? This property will require a final inspection as its an end loan purchase that will not be ready until December". Can this be done subject to receiving the builder's cert as well? I'm hoping someone can provide me with some advice.

 

[shrubberyvaluation]

I'm doing an FHA appraisal on a new construction home. It's going to be done subject to completion per plans & specs... I've reached out to the lender for the HUD-92541. This was the response I received "It has not been received back from the builder yet. Is the appraiser able to complete the report now and use the builder cert later on? This property will require a final inspection as its an end loan purchase that will not be ready until December". Can this be done subject to receiving the builder's cert as well? I'm hoping someone can provide me with some advice.

Call the FHA resource center and ask them. I always do them after the dwelling is over 90% complete.

 

[Mike Ault]

I'm doing an FHA appraisal on a new construction home. It's going to be done subject to completion per plans & specs... I've reached out to the lender for the HUD-92541. This was the response I received "It has not been received back from the builder yet. Is the appraiser able to complete the report now and use the builder cert later on? This property will require a final inspection as its an end loan purchase that will not be ready until December". Can this be done subject to receiving the builder's cert as well? I'm hoping someone can provide me with some advice.

It would be dumb for the client to tell the builder to get started on that without their appraiser verifying that the subject doesn't lie in any special site hazard areas. Things like flood zones, runway clear zones, proximity to storage tanks full of explosive materials, within the easement of high-voltage transmission lines, fill dirt that requires compaction, etc. and page 471 of HUD Handbook 4000.1 specifies that you are to be provided the Builder's Certification at the commencement of the assignment.

Documents to be Provided to Appraiser at Assignment
The Mortgagee must provide the Appraiser with a fully executed form HUD-92541, signed and dated no more than 30 Days prior to the date the appraisal was ordered.
For Properties 90 percent completed or less, the Mortgagee must provide a copy of the floor plan, plot plan, and any other exhibits necessary to allow the Appraiser to determine the size and level of finish of the house they are appraising.
For Properties greater than 90 percent but less than 100 percent completed, the Mortgagee must provide the Appraiser with a list of components to be installed or completed after the date of inspection.

 

[Tom D]

can you do it subject to getting that form. lender usually needs a value to keep it going. most, to be built, construction takes time to do it, and was usually asked to do a 1004d update, in which case you could have that FHA form. the lender doesn't have to send the appraisal thru the FHA portal to keep the loan alive. just some guessing on my part to get this baby started.

 

[Mike Ault]

can you do it subject to getting that form. lender usually needs a value to keep it going. most, to be built, construction takes time to do it, and was usually asked to do a 1004d update, in which case you could have that FHA form. the lender doesn't have to send the appraisal thru the FHA portal to keep the loan alive. just some guessing on my part to get this baby started.

I suppose the appraiser could go ahead and do it and hope for the best, however it would be a defect in the file waiting to be discovered during some future audit. I do know this very same issue was flagged by the audit department of a local lender due to the signature date on the certification being subsequent to the inspection date. That wasn't by accident either, local builders learned that the easiest way past 92541 issues was to simply mark no to all site hazard questions and hope the lender didn't catch them. Since the appraiser was the only person capable of verifying that form was filled out correctly, as long as they weren't worried about it then the builder didn't have to worry about those pesky noise surveys or compaction certifications. Any appraiser who insisted on being provided that certification was subsequently bypassed for those who didn't which allowed many erroneously documented loans to proceed with FHA financing. It will take that builder 10 minutes to fill the form out and the fact that they don't want the appraiser to see it in advance of his inspection as required sounds like the OP might be running into a similar situation.

 

[Terrel L. Shields]

What Mike said above. Copy and paste to the client and say you will wait or someone else can fall on their own sword.

 

[berad]

Great advice, thank you all!