• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Streamline Appraisals

Status
Not open for further replies.

BJ

Sophomore Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
What repairs if any are required on the VC sheets when doing a streamline appraisal? I've been told by a couple clients that most repairs that would otherwise need to be done aren't necessary. If this is the case, how would the VC sheets need to be filled out (say there is a broken window) and what comments should be made on the main body of the URAR that reflects that the appraisal is "streamlined"?

Thanks in advance,
BJ
 
For an FHA to an FHA stream-lined appraisal the site visit for visual observations of any minimal property deficiencies is the same as all other FHA site visits. The VC Addendum is to be completed according to what was noted during the site visit. The DE Underwriter has the option of waving all VC noted deficiencies except for any lead based paint abatement requirements.

The appraiser MUST complete the VC Addendum noting any and all deficiencies. Some lenders may require repairs of some of the other deficiencies as a condition of the loan.
 
My understanding is that the VC sheets don't change with the exception of not requiring a termite inspection. It is up the the underwriter to wave any repairs
 
Ditto, do a regular FHA appraisal. VC's and all, but it is not subject to repairs, that is a UW call.
Mell.
 
Again, looks like I'm the odd man out.

It has been my experience and I have been told by HUD (in fact it was a question on the HUD test if I remember correctly) that the only repair you should list on an FHA streamline refi is for lead based paint. No other repairs are required.

Ron in AR
 
Ron,
You are correct. On a refi, lead paint repair is a requirement if there is a problem noted. That was in one of the previous post, so you are not as odd out as you think. :)
 
Ron in AR & M Leggett,

The answer as provided in the FAQ's on the HUD website under question 2 is "On streamline refinances with appraisals, all that is required is the VC form, not the Homebuyer Summary. Although FHA does not require repairs (except for lead based paint repairs) on streamline refinances with appraisals, the lender may require completion of repairs as a condition of the appraisal."

Since "the lender may require completion of repairs as a condition of the appraisal" the lender must know what repairs were noted during the FHA site-visit.

It is left to the DE Underwriter to make the final determination.
 
Ohhhh, I fell like a dog chasing my tail round and round. Getting dizzy. 8O
 
Mell, you better be careful getting dizzy in those mountains of north Ga. Wade
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top