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subject to completion?

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SunbeltAppraisals

Thread Starter
Sophomore Member
Joined
Aug 29, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I have a FHA request to do a "subject to completion" appraisal on a property missing an AC unit. ($5000 in escrow for AC)

This is not allowed through FHA?

Correct?

The AC unit must be functional.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
The appraiser's job is to condition the report for the repairs or inspections that are seen for the subject. It is up to the UW to decide how to complete the loan. 99.9% of the time they will not hold escrow for FHA deals, but I have seen them do it with special exceptions. Just do the appraiser's end of it and let the lender wrestle with the details.
 

David Beasley

Senior Member
Joined
Dec 12, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
"Subject to completion" per FHA's own guidelines, means the home is not complete. Sounds like a missing A/C would be "subject to repair" instead.

Also, do you mean A/C, or do you mean heat? A/C is not a requirement that I am aware of. Heat is though.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Could be doing a 203k streamline, that allows for the A/C unit to be funded as part of the loan, but they can go ahead and close.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
If the purchase contract calls for a new A/C unit, then do the report subject to installation of that A/C unit. Yes, it is permitted by FHA.
 
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