USDA rural housing appraisal guidelines

[Thomas J Kirchmeyer]

Is there such a document or is there guidence anywhere on writing up and reviewing these appraisals? I just know that appraiser must be on FHA roster, state that the house meets HUD guidelines, and no in-ground pools allowed. Any other quirky things?

 

[G-man]

USDA Appraisals

As far as I can tell, they are conducted the same way as any FHA report. No case number is involved, however. You do need to include the Existing Dwelling Certification form within your report. This can be downloaded in PDF format, just google USDA Existing Dwelling and you should be able to find it.

Never heard of USDA not allowing in-ground pools, however. Learn something new every day.

 

[PropertyEconomics]

A question ... are you reviewing an appraisal for USDA? USDA has State Appraisers (Chief Appraisers) within the individual states that typically do the review work, unless you are doing it for a guaranteed loan and the lender hired you.

USDA follows HUD guidelines for the 4150.2 and 4905.1 and the appraisals should be written to these guidelines and should state so within the appraisal report.

With regard to pools, it is my understanding that current simulus money cannot be used for financing of a property with a pool UNLESS ... the pool is for theraputic reasons and a doctor has prescribed the pool as part of a therapy program.

USDA also has handbook 3550 which deals with Single Family Residential underwriting and appraisal. It a good source for further information.

Finally, each state has a Housing Director who can direct you to more information or can refer you to an Area Loan Specialist that will know the requirements for an appraisal or you can ask for the State Appraiser and they should be able to help you.

Hope this helps.

 

[Sierra Dale]

I completed one and according to our state director for these loans you do not need to be a FHA approved appraiser. I did do FHA with my mentor when I was interning and have taken FHA classes so I felt confident about accepting the assignment. I did it on the 1004 form and added the FmHA Guaranteed Rural Home form from my clickforms. You do have to say that you completed it to the FHA guidlines. The lender accepted the report. If you have any questions just call your state director for these loans. It is simple. Good luck.

 

[PropertyEconomics]

I completed one and according to our state director for these loans you do not need to be a FHA approved appraiser. I did do FHA with my mentor when I was interning and have taken FHA classes so I felt confident about accepting the assignment. I did it on the 1004 form and added the FmHA Guaranteed Rural Home form from my clickforms. You do have to say that you completed it to the FHA guidlines. The lender accepted the report. If you have any questions just call your state director for these loans. It is simple. Good luck.

Diana ... one word of caution ... each state is different regarding whether the appraiser must be on the FHA panel or not. Some states have it mandatory while others do not. New Mexico, for example, is not a mandatory FHA Panel state while I believe Michigan is. One thing that is uniform, per 4150.2 .. the contracting appraiser MUST inspect the subject (interior and exterior) and the comparables from the exterior. A trainee can typically assist in the job and can sign the report, however, the appraiser assigned the job MUST inspect.

It is also important, as you have mentioned, the appraiser must know 4150.2 and 4905.1 and when signing the report are in fact stating they are competent to complete the appraisal in accordance with HUD guidelines. And as always, USPAP is also mandatory. When a review is completed both USPAP and USDA (Rural Development) guidelines serve as the basis for the review.

Again if one has questions, call your state office and speak to the Housing Director, the State Appraiser or a Residential Loan Specialist ....

Good luck.

 

[Jerry Bone Jr]

Here is the link for Oregon - http://www.rurdev.usda.gov/or/
Here is the link for New York - http://www.rurdev.usda.gov/ny/

 

[Mary Tiernan]

ILast I knew, it is not mandatory to be on FHA panel for RD appraisal here in Michigan.

 

[PropertyEconomics]

ILast I knew, it is not mandatory to be on FHA panel for RD appraisal here in Michigan.

My apologies Mary .. I was misinformed ... the matter is to simply call and ask. Some states have the requirement and some dont .. it is dependant upon the State Office and the requirements they have imposed ...

 

[seattle98116]

Tom, I just read somewhere this week that the pool limitation was lifted; some publication, but sorry...don't know where. I thought it funny when I read it that they wouldn't lend or give credit for pool (if an adjustment was made).
Justin Slack, SRA
Seattle, WA

 

[Fletcherman]

I know this thread is old, but I've searched everywhere for USDA swimming pool requirements (including here) and I finally found, in writing, something from USDA that addresses the acceptance of swimming pools. I wanted something in writing because I've received different answers when speaking to different people at USDA.
Here is a link to PDF of a USDA memo:

USDA Ann. No. 4442: In-Ground Swimming Pools