USDA appraisal question

[cniles]

I recently received a USDA appraisal request. It has been years since I have done one. I have done many FHA appraisals though. Can anyone let me know what specific requirements beyond FHA that USDA is asking for? What are the requirements for well and septic? This home has both. Are there any specific comments that need to be added to the report? Do the FHA comments need to be included in a USDA appraisal? Any help you could provided would truly be appreciated. Thank you in advance for your help.

 

[Carnivore]

The condition you must realize is USDA did not adopt current version FHA 4000.1. They still use the most current 4150 dot what ever.

So let it be your guide. https://eligibility.sc.egov.usda.go...Action.do;jsessionid=ct-Etf3oOyd2lVtMbgH2oBq7

Additionaly in the link above there is a way yo determine if your subject is even qualified for a USDA Loan

below is helpful Sometimes the lenders get it wrong and your subject is not eligible


https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

 

[glenn walker]

I recently received a USDA appraisal request. It has been years since I have done one. I have done many FHA appraisals though. Can anyone let me know what specific requirements beyond FHA that USDA is asking for? What are the requirements for well and septic? This home has both. Are there any specific comments that need to be added to the report? Do the FHA comments need to be included in a USDA appraisal? Any help you could provided would truly be appreciated. Thank you in advance for your help.

Its virtually a FHA Look A Like with very few differences other than AG Zoning and more Rural uses. Normally most lenders Underwriters are FHA DE Endorsed. As far as well and septic common and typical on a lot of USDA USDA The well and septic systems must be at least 100 feet away from the house. I do not make FHA comments but do include USDA as Intended User and insuring the loan.

NOTE: USDA HAS ITS OWN APPRAISAL SITE ONLINE- SUGGEST LOOKING AT IT .

An In-Depth Look at the USDA Appraisal

Loans guaranteed by the USDA have to have an appraisal so that lenders can obtain an independent value for a property. Independent appraisers with proper licensure or certifications is required.

www.usdaloans.com

 

[Vermonter]

The well and septic systems must be at least 100 feet away from the house. I do not make FHA comments but do include USDA as Intended User and insuring the loan.

The site you linked is NOT the USDA and never heard that well/septic requirement and I receive order direct from the local USDA.

Site requirements- https://www.rd.usda.gov/files/RD-SFH-SiteRequirementsNotes.pdf

The condition you must realize is USDA did not adopt current version FHA 4000.1.

USDA has adopted 4000.1 Existing SFR requirements-

https://www.rd.usda.gov/sites/default/files/508_Existing_Dwelling_and_Escrow_Requirements422F.pdf

 

[Carnivore]

The site you linked is NOT the USDA and never heard that well/septic requirement and I receive order direct from the local USDA.

Site requirements- https://www.rd.usda.gov/files/RD-SFH-SiteRequirementsNotes.pdf



USDA has adopted 4000.1 Existing SFR requirements-

https://www.rd.usda.gov/sites/default/files/508_Existing_Dwelling_and_Escrow_Requirements422F.pdf

Thanks for that info. Originally I recall reading where they had not or was it not Yet. adopted 4000.1 Interestingly though the date on the link above is Nov 2020.
The Newest version of 4000.1 is Dtd 11/09/2021 Meaning after the date of your source, So I don't know how to reconcile that date discrepancy . Meaning they adopted the new 4000.1 before it was published?

hmmmm Could it be

 

[Vermonter]

hmmmm Could it be

Bureaucracy in action, but I do remember an email when they adopted 4000.1 so it has happened, just not sure when.

 

[Carnivore]

Bureaucracy in action, but I do remember an email when they adopted 4000.1 so it has happened, just not sure when.

Yep!! That's what I thought it might be. I must of fallen off their Email List because I have not received one in a year or two. That's OK, because I have not completed a USDA report in a long time. FHA OTOH I have done quite a few. Hey, this is good though because I am updated because of your post.

Hey, if you want a good laugh or cry go over to Facebook Appraiser Forum. I warn you its a Zoo. They are infected with a Super-Version of Appraisal Disinformation. :-(

 

[Carnivore]

I pulled this NUGGET from the USDA Link above

"Multiple Parcels  Entire property will contain only one dwelling.  Each parcel must be conveyed in its entirety and have same zoning.  Mortgage must provide valid first lien covering each parcel.  Parcels divided by a road, that would otherwise be contiguous, are acceptable.

So they both have differences

OK that is not what FHA Wants. Their requirement is to exclude the 2nd parcel from the appraisal assuming it is excess land using a hypothetical. You can find that on page 583 of 4000.1 11/09/2021