Usda Appraiser Question

[Doug in NC]

Are there any special requirements for USDA appraisals versus FNMA reports? I've been asked to do an assignment for a USDA loan, just wondering if there is any specialized training required on performing appraisals for a USDA loan. Thanks in advance.

 

[timd354]

Are there any special requirements for USDA appraisals versus FNMA reports? I've been asked to do an assignment for a USDA loan, just wondering if there is any specialized training required on performing appraisals for a USDA loan. Thanks in advance.

The USDA appraisals have some of the same requirements as FHA - suggest that you read section 2 of Chapter 12 of the HB-1-3550 Direct Single Family Housing Loans and Grants - Field Office Handbook, which can found here:
https://www.rd.usda.gov/publications/regulations-guidelines/handbooks#hb1355

 

[Doug in NC]

No home inspection like FHA though, right?

 

[timd354]

No home inspection like FHA though, right?

Wrong. The appraisal inspection is the same as for FHA. Read the requirements in the handbook, which includes the following information:

12.9 EXISTING AND NEW DWELLINGS
A. Existing Dwellings [7 CFR 3555.202(b)]
The objective of the SFHGLP is to assist eligible rural households in obtaining
adequate, safe, and sanitary homes. Information regarding financing existing
manufactured and modular homes may be found in Chapter 13 of this Handbook.
An existing dwelling may be attached, detached or semi-detached dwellings and must
be inspected to determine that the dwelling meets the current requirements of:
 Single Family Housing Policy Handbook (SF Handbook; HUD Handbook
4000.1), or as superseded by HUD.
HB-1-3555
12-18
An existing dwelling has been completed for more than 12 months or has been
completed less than 12 months but has been previously occupied.
Required repairs under the noted handbooks are limited to those repairs necessary to
preserve the continued marketability of the property and to protect the health and safety
of the occupants. Applicants are encouraged to obtain a detailed home inspection of the
property in dependent independent of the inspection noted above.
As stated in SF Handbook (HUD Handbook 4000.1) the responsibility for enforcing
code rests with the local municipalities. All repair items required by the appraiser or
underwriter must be inspected and the clearance documented and retained in the lender’s
permanent loan file.
Licensed or certified appraisers who are on the Federal Housing Administration
(FHA) roster of approved appraisers can certify the HUD Handbook standards have been
met. Licensed or certified appraisers who are not FHA roster appraisers may also certify
the HUD Handbook standards have been met if the lender determines the non-FHA roster
appraiser is thoroughly familiar with the SF Handbook (HUD Handbook 4000.1.)
Appraisers who are not thoroughly familiar with the HUD Handbook standards should
not certify that a property meets those standards. Doing so would constitute a
misrepresentation. If the licensed or certified appraiser is not a FHA roster appraiser or
familiar with the HUD Handbook standards, the lender should obtain a home inspection
report provided by a home inspector deemed qualified by the lender. Lenders will be
responsible for determining whether any, repairs will be required to meet HUD
Handbook standards. Lenders are reminded they are responsible for the acts of their
agents, including appraisers.
 HUD Handbooks and forms can be downloaded over the internet at
http://www.allregs.com/tpl/Main.aspx or obtained by calling 1-800-767-7468.
 FHA roster appraisers can be identified at https://entp.HUD.gov/idapp/html/apprlook.cfm
The appraiser may certify the requirements of the SF Handbook (HUD Handbook
4000.1 (also known as “HUD Handbook”) have been met on page three of the appraisal
form in the “comment” section. Alternately, the appraiser may make their certification in
an addendum to the appraisal.

 

[glenn walker]

FHA *** Look -A-like Nothing more and nothing less

 

[Doug in NC]

I think I'll just skip it. I don't need the aggravation of doing an FHA inspection and I don't need the extra work right now. Thanks for the advisement Tim.

 

[Elliott]

FHA + photos of sheds (+ inside). More anal than FHA.

 

[residentialguy]

The difference is that USDA doesn't UAD condition and quality ratings. It's graded on a A-E, either USDA Prime, Choice, Select. They give more weight to the homes that are upgraded with marble.


....just ribbing you

 

[Mike Garrett RAA]

A few years ago I was asked to mentor an appraiser who's supervisor moved away. This lady was just a few hours short of her 2,000 hours and was specializing in doing USDA appraisals. It was my first experience doing those. One of the things I found out was the emphasis USDA placed on the cost approach. They wanted the pages from the cost book included in the report and the use of a separate page detailing the cost factors used in developing the approach. They also wanted three land sales to support the site value.

I do VA appraisals mostly and didn't even have a current Marshall/Swift cost book. USDA isn't a client I would want.

 

[Noreen]

Are there any special requirements for USDA appraisals versus FNMA reports? I've been asked to do an assignment for a USDA loan, just wondering if there is any specialized training required on performing appraisals for a USDA loan. Thanks in advance.

Greg, when I do the USDA (Rural Housing) assignments here, the two things that are specifically defined for me is population (here, must be under 20,000 ) and the land value must be 30% or less of the value of the entire asset. ( I have seen them make an exception on this in some circumstances but I am not familiar with the boundaries.).