Using the 1004 for a Duplex

[Chuck Harlowe]

I have a duplex where the owner occupies one half. The lender wants me to use the 1004/URAR. Can I use this form and if so what to I put under units in the General Description. This is conventional by the way.

 

[Michael Tipton]

A duplex is a duplex. It is inappropriate to utilize a 1004 03/05 form. Just say no and require a 1025 form, the only current FNMA form approved for SRIP.
Charge a 1025 fee and move on.

 

[Lee Lansford]

I take it that the Subject is a 2-unit small income property under single-ownership and not two separate (though attached) parcels where the H&B Use is SFR attached...yes?

If I am correct, no, you would not want to communicate the appraisal on the "new" 1004.

But, from your post, I am somewhat unsure of exactly what property type you are appraising; do provide more information.

 

[Chuck Harlowe]

Yes, you are correct. The property is a two unit attached dwelling on one parcel under single ownership. The units are identical. The owner lives in one half and rents out the other. Thanks for quick help from both of you. I wanted to be sure that the new 1004 could not be used for this.

 

[Lee Lansford]

It is possible to communicate an appraisal on a napkin.

If the lender holds the loan--and it is certain that the loan will never be going to the secondary market--it might be OK to communicate the appraisal on the OLD 1004/URAR.

 

[Otis Key]

It is possible to communicate an appraisal on a napkin.

If the lender holds the loan--and it is certain that the loan will never be going to the secondary market--it might be OK to communicate the appraisal on the OLD 1004/URAR.

Lee is correct on that aspect. However, how are you going to be able to assure that it's not going to be sold to the secondary market? The use of the OLD 1004/URAR is one way, as well as including a statement that it is not intended for the secondary market.

Me --- I'd put it on the form it's intended to be shown on.

 

[Lobo Fan]

I have one in front of me right now, that is an SFR with a small studio added on to the rear with a litchen and 3/4 bath. I am thinking that it could be an SFR with an auxilary unit. The studio is rented.

The challenge on this one will be getting the city of Santa Fe to give me the zoning. The fastest they have ever responded to me is three weeks. I really need it this time, so I guess it is time to get nasty.

 

[robert higgins]

if the owner owns 1 side of the duplex, then 1004
if the owner owns both sides of the duplex, then 1025

 

[Brian L. Stone]

If the the unit and the comparables are owner occupied then you can treat it as an SFR and use the 1004. Is the neighborhood a PUD? that would also allow you to use the 1004:new_multi:

 

[Restrain]

If its two units or more (as opposed to a single family with auxiliary unit), a 1025 is required for the secondary market. You cannot accurately analyze a duplex-triplex-fourplex on a SFR form. You have differences in functionality, utility, unit size, parking, income streams, etc that require significantly more analysis.