Second Lot on VA Purchase

[Ariba]

I'd bet money you are wrong.

Bring it on! What do you have in mind? Just be clear you are saying VA will guarantee a home loan on vacant land without the intention of building a house on it.

 

[CindyR]

Bring it on! What do you have in mind? Just be clear you are saying VA will guarantee a home loan on vacant land without the intention of building a house on it.

YES they will. see post 3. it quotes the VA guidelines. and i have confirmed it with the RLC.

 

[KYLECODY]

Bring it on! What do you have in mind? Just be clear you are saying VA will guarantee a home loan on vacant land without the intention of building a house on it.

Additional parcels are not uncommon with no structures on them. Separate APNs, VA will do it. Send Terrell a check.

 

[Carnivore]

The first issue that is causing all the problems in Residential Appraisal work is FNMA Forms. We are stuck with using that format. We are stuck with using the Pre-printed Definition of Market Value. To compound the problem even more is the Different requirements by Lenders. FHA, FMHA, USDA and VA etc(i'm sure there are more). Throw in conventional is when the real Circus act begins. That brings me to the Ringmaster AKA AMC Phone Monkey. They seem to be incapable of understanding anything outside the typical FHA Grade on Slab Vinyl Village Cookie Cutter. Why should they? These kinds of assignments are probably as rare as Hens Teeth.

So all that creates a Standard 2 Reporting Problem, not a standard 1 development Problem.

HBU is Fundamental. PERIOD! We either have Surplus or Excess site area. Just because a subject has multiple lots with separate legal descriptions may or may not answer that question; of Excess or Surplus. Old Cities in North & S. Carolina have Plats with lots in increments of 10', 20' It is not unusual to have a legal description of Lot 1,2, & 3 as the legal. Some are corner sites and may have an one Odd number Lots 1,2,3 # 17. This is an interesting problem in my AO because all the Lots singularly are surplus(not SFR buildable and if you drop Lot #17 you now still have one Buildable SFR Site. If you don't Drop #17 then you have one buildable site with a surplus site.

So in Rural Areas outside common Municipalities where they have control(includes extraterritorial Jurisdiction; commonly one mile). It can become really problematic. The Zoning description may have some uncommon requirements, as opposed to Municipalities. My Current County Rural Residential Zoning creates the need for an Extraordinary Assumption for a Vacant Unimproved Site. There are no minimum or maximum site requirements. What is weird is R1, R2 and R3 are all exactly the same.

My Major points are this:

1. FNMA wants the Value stated on Page 2 of the URAR to be the Subject Site and Its Improvements + the Contributory Value of the 2nd and possibly a third Site.
2. They also need to Know the Exposure Time of the Combination.
3. Middle Page one; HBU Answer Check "NO!" add See attached Addendum

With that known the Lender will determine the Mortgage amount to loan based on what LTV they have determined for that Specific Borrower.

My Tag Line ; Improvise, Adapt and Overcome

My Edict: Say what you mean, Mean what you say!

I not only strongly welcome but actually want you to pull the Gloves off and school me. That's as Old School as I can get!

Rond N Round we go

 

[Ariba]

Additional parcels are not uncommon with no structures on them. Separate APNs, VA will do it. Send Terrell a check.

27-7 Revised "The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value."

"While the appraiser must determine the highest and best use, the appraiser must also complete the appraisal in accordance with VA guidelines. For example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use"

The extra land would be for non-residential purposes and therefore according to the VA guidelines, there is value for the land. How are you getting a loan on land that under VA guidelines has value for VA to guarantee?

 

[Carnivore]

Do any of you feel like a 'Monkey in the Middle'?

I am afraid to look. Is there an AS-IF check box?

 

[Ariba]

Additional parcels are not uncommon with no structures on them. Separate APNs, VA will do it. Send Terrell a check.

27-7 Revised "The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value."

"While the appraiser must determine the highest and best use, the appraiser must also complete the appraisal in accordance with VA guidelines. For example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use"

The land would be for non-residential purposes and therefore according to the VA guidelines, the land has no value. How are you getting a loan on land, that under VA guidelines, has no value?

 

[Carnivore]

The possible Relevant FAQ as follows:

FAQ 176
FAQ 188
FAQ 195
FAQ 197
FAQ 223

 

[KYLECODY]

27-7 Revised "The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value."

"While the appraiser must determine the highest and best use, the appraiser must also complete the appraisal in accordance with VA guidelines. For example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use"

The land would be for non-residential purposes and therefore according to the VA guidelines, the land has no value. How are you getting a loan on land, that under VA guidelines, has no value?

You are talking about the VA loaning on just a parcel of land with nothing else, correct? The rest of this thread and the topic from the OP was them loaning on a parcel with a home and adjoining land that has a separate APN together as one loan. Yes they do that. Post 3 had the guidelines.

b. Multiple Parcels

More than one parcel or lot may be included as long as all of the property is contiguous and legally marketable. VA does not set a limit on the number of acres that the property may have.

 

[Lee Lansford]

This is no more, nor no less, than the application of a very basic principle of appraisal when appraising for Market Value: To include a vacant parcel that is adjacent to a SFR improved parcel (and where the vacant parcel is not necessary for the improved parcel to conform with zoning) for an opinion of Market Value, the market evidence must be that the H&BU (that is--the reality of the market, not a "pie-in-the-sky" H&BU) of the vacant is for assemblage with the improved parcel. That is, the value of the vacant parcel now and for the foreseeable future is only to a neighboring SFR improved parcel. That's it. Finito.