To 1004D or not to 1004D what is the difference?

[Doug DeMars]

Found it...FAQs...#001

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf

 

[TX ladybug]

Found it...FAQs...#001

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf

I totally read that and I use to think that but then this came along and I found this, so which one do we follow...........this link is the one that seems to be the most updated, which is why I started requesting it. Here is the link for you to review and let me know what you think now.

http://portal.HUD.gov/hudportal/HUD?src=/program_offices/housing/sfh/ref/sfhp1-8c

 

[Doug DeMars]

The FAQ is from 11/02/2010...pretty current as far as I'm concerned. When in doubt...I'd use common sense. Absent that...less common sense can be obtained by calling the HOC.

???

 

[Doug DeMars]

FTR, I had documentation regarding over 90% complete well before the updated FAQ on 11/02/2010...just not sure where/when I got the first one.

 

[titansecko]

Are specs and specifications needed when a new construction is more than 90% complete. My appraiser refuses to complet his appraisal with out them.

 

[Mile High Trout]

This is why I don't like new construction.

Now link this to the cost approach and builder profits for that extra strength headache.

FHA lending has a supposition or anticipation of being "turn key".

The reason FHA operates this way is if they loan on a property, they want to assure the borrower will not have expense issues which cause the long term viability of the loan to fail. Sometimes the varied details of ML's and stances by appraisers and lenders obscure the true goal of these rules. Base decisions on logical interpretation of these rules with the goal of "turn key" in mind.

I'm all for calling the HOC - 1-800-call-FHA. They make all these complex rules, so if the appraisal client and the appraiser cannot see eye to eye, the HOC is a great mediator which will provide the necessary guidance to proceed in a way which is compliant within their processes. Expect to wait for some responses though. Both the appraisal client and the appraiser can find value in using their consultation service meant specifically for questions that arise within the appraisal and lending process.

 

[titansecko]

This is what appendix d states for new construction. What are construction exhibits?
C. “Subject to the following Repairs or Alterations”
1. Repair or Alteration Condition(s) noted by the appraiser, or
2. Streamline 203K, or
3. Under Construction, more than 90% complete with only minor finish work remaining (buyer preference items i.e., floor coverings, appliances, fixtures, landscaping, etc.). This eliminates the need for construction exhibits.

 

[RSW]

Are specs and specifications needed when a new construction is more than 90% complete. My appraiser refuses to complet his appraisal with out them.

They are required if the dwelling is less than 12 months old, Period!

 

[titansecko]

Here is my situation I am the buyer of a new home constructed in a well establish neighborhood on there last section of building for the last 5 years. The appraiser wants form 92005 filled out witch the builder has not provided for the last 4 years. At the moment they are filling it out but it has delayed my plans to move. I just don't understand why this appraiser needs this form filled out when others have been able to appraise the same exact (floor plan, dementions) house with out it?

 

[RSW]

Here is my situation I am the buyer of a new home constructed in a well establish neighborhood on there last section of building for the last 5 years. The appraiser wants form 92005 filled out witch the builder has not provided for the last 4 years. At the moment they are filling it out but it has delayed my plans to move. I just don't understand why this appraiser needs this form filled out when others have been able to appraise the same exact (floor plan, dementions) house with out it?

Because it is a HUD/FHA requirement. It not your appraiser's fault that other appraiser's don't know FHA appraisal protocol.