Tenant Occupied Refinance Question

[netappr]

Doing an FHA reverse mortgage and the home is tenant occupied. The owner of the home just done a reverse mortgage on their 1st home and are now trying to do one on there investment home. Tried to find something online if the is acceptable or not (tenant occupied) but had no luck. If anyone knows, let me know. Thanks.

 

[timd354]

Doing an FHA reverse mortgage and the home is tenant occupied. The owner of the home just done a reverse mortgage on their 1st home and are now trying to do one on there investment home. Tried to find something online if the is acceptable or not (tenant occupied) but had no luck. If anyone knows, let me know. Thanks.

Who cares whether or not the occupancy is acceptable in order for the loan program. Obviously, the lender who is doing the loan must know of the situation and can determine whether or not the loan can be done. You were hired to appraise the property, not to underwrite the loan. Appraise the property and report the occupancy as it is. End of story.

 

[AnonApprsr]

timd is very right. Finish the appraisal, honestly note tenant, collect your fee.

Unless you are about your client. If that's the case, as would I for a LTC, you should notify them of the tenant situation. If they say "Oh, we know about the tenant", than you're all set.

 

[ghrousseau]

There is the possibility that the appraisal on the investor property is to determine the equity in it for underwriting purposes.

Check out Mortgagee Letter 2008-25


http://www.HUD.gov/offices/adm/hudclips/letters/mortgagee/files/08-25ml.doc


As others have posted, just finish the appraisal and mark tenant occupied.

 

[Mike Kennedy]

Doing an FHA reverse mortgage and the home is tenant occupied. The owner of the home just done a reverse mortgage on their 1st home and are now trying to do one on there investment home. Tried to find something online if the is acceptable or not (tenant occupied) but had no luck. If anyone knows, let me know. Thanks.

http://www.FHA-refinance-program.com/hecm_homepage.html

Occupy your property as primary residence

Single family home or 1-4 unit home with one unit occupied by the borrower

Homeowners 62 and older who have paid off their mortgages or have only small
mortgage balances remaining, and are currently living in the home are eligible to
participate in HUD's reverse mortgage program. The program allows
homeowners to borrow against the equity in their homes. Homeowners can
select from five payment plans:

• Tenure - equal monthly payments as long as at least one borrower lives
and continues to occupy the property as a principal residence.


_________

RE: the above - as others have recommended, cite tenancy (to your knowledge) - let UW do their job. Appraise the property based on the facts - as you know them to be per owner.

p.s. if the assignment was originated by an unethical mortgage broker - anticipate / expect a follow up request to intentionally commit fraud. ( " do you REALLLLLLLLY have to say He doesnt actually live there?" / YES I DO if that ..........is........the case.)

http://www.FHA-refinance-program.com/hecm_guidelines.html

 

[BRCJR]

timd is very right. Finish the appraisal, honestly note tenant, collect your fee.

Unless you are about your client. If that's the case, as would I for a LTC, you should notify them of the tenant situation. If they say "Oh, we know about the tenant", than you're all set.

I beleive you must occupy your property as primary residence for the reverse.