Rural Development Requirements

[Deanie]

I received an engagement letter requesting a Conventional Purchase 1004. The contract is for an FHA loan with no case number. I asked the client about it and they stated that it is Rural Development and that it needed an FHA contract. Shouldn't this be stated as the type of loan and not conventional? I have not completed a USDA report before but from what I can find on the forum it is completed like an FHA report with the inspection being the same. I could only find old posts regarding this so I apologize if my question is already answered somewhere. Also is USDA to be named as an intended user? The client is Rels and the order specific guidelines do not address this. I am FHA approved but does that qualify me for USDA assignments?

 

[Michigan CG]

USDA reports are completed the same as FHA. In your narrative where you would normally state "FHA" you insert USDA.

 

[Amy Perkins]

I think they need to give you the number and it can't change to a new number for FHA.

 

[hastalavista]

Does USDA have a certified license-level requirement similar to FHA? (I am not USDA approved, so I don't know).


EDIT TO ADD: I see you have this in your post

I am FHA approved but does that qualify me for USDA assignments?

so I'm presuming your forum ID is not up to date.

But, does USDA have a certified license-level requirement? (I'd still like to know).

Thanks

 

[Deanie]

Yes I am certified my profile is not updated. From what I have read on the forum it does require a certified appraiser. I was trying to confirm that the inspection and reporting requirements were the same as FHA. I am also trying to figure out why the order didn't state USDA and if I should have them change it on the engagement letter. I could not find anything in the pa that references USDA. Does anyone know where I find the requirements for appraisals for USDA?

 

[apt20]

my guess would be rurdev.usda.gov, but not sure. There is no case number, certified required, but they will allow trainees to sign on the left if the supervisor inspects. We do tons of them here.

 

[Mr Rex]

The requirements are the same as FHA. An FHA roster appraiser can do it or a non FHA appraiser can do it but a Home Inspection by a licensed Home Inspector is required.

 

[Peter LeQuire]

Yes I am certified my profile is not updated. From what I have read on the forum it does require a certified appraiser. I was trying to confirm that the inspection and reporting requirements were the same as FHA. I am also trying to figure out why the order didn't state USDA and if I should have them change it on the engagement letter. I could not find anything in the pa that references USDA. Does anyone know where I find the requirements for appraisals for USDA?

The engagement agreement/appraisal request should specify that the appraisal is being requested in connection with a USDA mortgage.

The appraisal requirements are FHA's; the borrower underwriting is FHA's (I think); the USDA program allows a lower down payment than FHA.

 

[apt20]

or a non FHA appraiser can do it but a Home Inspection by a licensed Home Inspector is required.

Is that a nationwide thing or regional? I think there are some here that do not have the home inspection if the appraiser is not FHA approved.

 

[RSW]

add these comments to the report also:


"The subject meets the thermal standards per RD instruction 1980-D."
"The subject is (or isn't) served by a public water source."
(If applicable) "Septic system appears to be sound and operable. Toilets were flushed."