USDA/Rural Development question

[PropertyEconomics]

Would you share the source of the above construction definition?

Your source and definition is much better than that which I wrote. Underconstruction is fine .. I have no issue with that at all. Those portions of the subject which are not complete are still proposed, but your definition of underconstruction is applicable in this instance and covers those incomplete items well.

 

[PropertyEconomics]

Thanks...I have that one in my list already. The original question was geared more towards how USDA/Rural Development compares to FHA.

The question remains ... Is this a guaranteed loan (lender involved) or a direct loan from USDA (USDA is the lender)?? Then your question can be answered above. The rules are different for each loan type.

 

[RSW]

Thanks...I have that one in my list already. The original question was geared more towards how USDA/Rural Development compares to FHA.

It doesn't matter. The appraiser is to follow HUD/FHA appraisal protocol regardless.

 

[PropertyEconomics]

It doesn't matter. The appraiser is to follow HUD/FHA appraisal protocol regardless.

FHA / HUD protocol does not apply to Direct Loans by USDA ... the property requirements are different under the Direct Lending program. USDA regulation for single famliy housing applies under the Direct Lending program which requires a decent, safe and sanitary dwelling with great latitude given to the Loan Specialist as to additional property requirements.

 

[metapp]

FHA / HUD protocol does not apply to Direct Loans by USDA ... the property requirements are different under the Direct Lending program. USDA regulation for single famliy housing applies under the Direct Lending program which requires a decent, safe and sanitary dwelling with great latitude given to the Loan Specialist as to additional property requirements.

I believe it is a guaranteed loan. I will do some more checking to verify but it sounds like if it is a guaranteed loan then I should just treat it as FHA and move along. I really appreciate all of the feedback. It is nice to have a resource that can help fill in the gaps when needed.

 

[PropertyEconomics]

I believe it is a guaranteed loan. I will do some more checking to verify but it sounds like if it is a guaranteed loan then I should just treat it as FHA and move along. I really appreciate all of the feedback. It is nice to have a resource that can help fill in the gaps when needed.

Its easy to tell .. if the order came from a Lender it is a guaranteed loan .. if it came directly from USDA it is a direct loan.

 

[incognito]

I still would like to see what the OP insists is FHA policy: If it is less than 90% complete, it requires P&S. I still do not believe this is FHA requirement?

 

[PropertyEconomics]

I still would like to see what the OP insists is FHA policy: If it is less than 90% complete, it requires P&S. I still do not believe this is FHA requirement?

I would tend to agree Incognito .. 100% is done .. less is underconstruction.

 

[metapp]

I still would like to see what the OP insists is FHA policy: If it is less than 90% complete, it requires P&S. I still do not believe this is FHA requirement?

Some of the terminology I used may have created the confusion. What I was intending to say is based on the 4150.2 page D-1. If the subject is less than 90% complete you have to do the appraisal subject to completion per plans and specs. If the subject is 90%+ complete with only minor finish work remaining (buyer preference stage) it can be done subject to the following repairs or alterations thus removing the need for the construction exhibits. If you flip over to D-21 under Stage of Construction it states that if the subject is proposed or under construction the plans and specs require plans and specs for the appraiser to review.

This is how I have always handled FHA new construction. Most of the time, we simply delay inspection until we hit the 90% market. If my interpretation is wrong on this I welcome some other viewpoints.

 

[RSW]

FHA / HUD protocol does not apply to Direct Loans by USDA ... the property requirements are different under the Direct Lending program. USDA regulation for single famliy housing applies under the Direct Lending program which requires a decent, safe and sanitary dwelling with great latitude given to the Loan Specialist as to additional property requirements.

I agree with most of your comments. But, the appraisal is to be done according to HUD/FHA protocol. The rest are underwriting issues and have nothing to do with the appraiser.