Remaining Economic Life on Condo?

[appraisalondemand]

I turned in a an appraisal Monday of a condo in a 1073. The underwriter wants to know what the Economic life of the condo is. I am not sure as I have never been asked this of a condo before. Is this request within reason? This is for an FHA appraisal if that matters.

TIA

 

[TC]

5 more years than the length of the loan.

 

[Joyce Potts]

Why wouldn't it be a legitimate question?

If you were about to loan a chunk of change over 30 years, wouldn't you want to have some idea if the unit had a life expectancy close to the term of the loan?

Think about it.

That said, I suspect someone is looking for a reason not to do the loan. Just speculation on my part.

 

[seattle98116]

FHA always wants remaining economic life on the appraisal for thier loans.

 

[appraisalondemand]

ok, so put the REL in the addenda?

 

[Joyce Potts]

FHA always wants remaining economic life on the appraisal for thier loans.[/quote

That's right, FHA wants remaining economic life on all their appraisals.

And if you DARE put anything less than 35 years--you've blown the loan.

 

[Joyce Potts]

Which is why FHA doesn't care much for my appraisals on 15-20 year manufactureds where I refused to do it.

Somehow, they don't get the math.

 

[Craig in Oregon]

Why wouldn't

remaining economic life of a condo in a fully permitted and developed condo project be "indefinitely" -- or at least until zoning or some other factor
changed to make the present use of the condo project land a different H&BU?
What would have to change economically for a different H&BU to take the place of the existing condo project? How do you "project" when a condo project will reach the end of its economic life? What is foreseeable and reasonable to foresee today?

Certainly can happen, apartments change to condos, condos get demolished and the site changes to high rises, strip malls, office buildings that sort of development progression.

Physical life, a different matter. Same with functional.

Given FHA wants the answer because "it is on the form", would saying "40 years" if there are no bulldozers in sight and no indication of internal or external project problems such as landslides, zoning changes, deep into a flood zone, etc. be such a problem?