UAD Quality Rating and Historic Home

[The Warrior Monk]

Was just talking to someone who watched a FNMA webinar the other day and according to him FNMA says that the Q rating of a home does not change from the day it was built. If it is built as a Q4 it will always be a Q4. That doesn't mean a quality adjustment shouldn't be made, just that significant remodeling of kitchens and bathrooms does not change the Q rating. I wasn't aware of that but can think of only one time that I called a house that was originally a Q4 a Q3 after crazy upgrades to everything. Anybody else aware of this?

I've never heard of this and it sounds like nonsense. I've seen plenty of obvious example of change in quality class.

As a simple example, I see a lot of homes razed where I work. It's simply due to the fact that land used to be cheap a few decades ago, and now it is outrageous expense. Most of the time the older homes are simply knocked down. However, in some cases, such as in environmentally sensitive areas, or on small lots with improvements in preexisting locations, the owners have to work with the existing home. The home could easily go from a Q5 to a Q3 or Q2. It will be modified to the extent that the original structure of the home will be completely invisible, excepting maybe the basement if it isn't finished.

 

[J Grant]

you are hearing that second hand from someone who watched a webinar. I've never heard of that as a Fannie edict. There is of course a difference between the construction / interior upgrades, and then there are replacement items,at some point they can change a rating, with replacement components such a roof and windows adding to exterior quality. However, unless a house is razed or rebuilt from slab, the walls and sub structure of roof are original and if of inferior quality should bring a Q rating down or influence it.

 

[residentialguy]

Was just talking to someone who watched a FNMA webinar the other day and according to him FNMA says that the Q rating of a home does not change from the day it was built. If it is built as a Q4 it will always be a Q4. That doesn't mean a quality adjustment shouldn't be made, just that significant remodeling of kitchens and bathrooms does not change the Q rating. I wasn't aware of that but can think of only one time that I called a house that was originally a Q4 a Q3 after crazy upgrades to everything. Anybody else aware of this?

I wouldn't be surprised if FNMA said the C ratings of a home does not change from the day it was built

 

[The Warrior Monk]

you are hearing that second hand from someone who watched a webinar. I've never heard of that as a Fannie edict. There is of course a difference between the construction / interior upgrades, and then there are replacement items,at some point they can change a rating, with replacement components such a roof and windows adding to exterior quality. However, unless a house is razed or rebuilt from slab, the walls and sub structure of roof are original and if of inferior quality should bring a Q rating down or influence it.

It's most certainly possible to upgrade the structure of a building. For example, the home could be gutted, and plywood screwed in over the framing on the interior. That makes the building more structurally sound, and keeps the interior from moving. When the custom paneling, crown moldings, coffered ceiling, etc. are placed on top of that structure, shifting is nominal, and therefore none of the woodwork will separate when the temperature of humidity changes. Staggered framing can be added to the interior for soundproofing. I've also seen new foundations and inside of the existing foundation for added structure.

 

[Terrel L. Shields]

I wouldn't be surprised if FNMA said the C ratings of a home does not change from the day it was built

sadly, neither would I. Very little they do is a surprise.