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VA Definition Of "total Floor Area"?

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RocketDog

Thread Starter
Freshman Member
Joined
Aug 14, 2016
Professional Status
General Public
State
Kansas
Can somebody please provide a current citable VA definition of Total Floor Area and the calculation used to determine it. This is in regards to a mixed commercial/residential VA mortgage request. I'm aware of the 25% non residential clause, also aware of the not so often mentioned "or impairing the residential character of the property" clause. However, having searched nearly to the end of the internet I can't find a VA or FHA definition of what Total Floor Area is as defined by VA as and what is included and excluded from the TFA. Thanks for any assistance.

RD

Chapter 12 VA PAMM 26-7 and the VA REGIONAL LOAN CENTER Saint Paul, Minnesota Construction & Valuation Fee Appraiser Guide

  • Nonresidential use exceeding 25% of total floor area or impairing the residential character of the property. If the appraiser determines that the area exceeds 25%, the appraiser must submit a dimensioned sketch of the subject property showing the nonresidential area and may charge a fee proportional to the amount of work completed. Please call our office if needed for guidance on appraisals of properties with commercial zoning.

 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
Does yours include "Note: In making this calculation, the total nonresidential area must include storage areas or similar spaces that are integral parts of the nonresidential portion."

That's in Chapter 12 of my MPR document. sure doesn't help much but its something...
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Here is the definition:

If the appraiser determines that the area exceeds 25%
 

RocketDog

Thread Starter
Freshman Member
Joined
Aug 14, 2016
Professional Status
General Public
State
Kansas
Does yours include "Note: In making this calculation, the total nonresidential area must include storage areas or similar spaces that are integral parts of the nonresidential portion."

That's in Chapter 12 of my MPR document. sure doesn't help much but its something...
Cindy R, yes mine does also, just didn't include it. Thanks though, your time is appreciated.
 

RocketDog

Thread Starter
Freshman Member
Joined
Aug 14, 2016
Professional Status
General Public
State
Kansas
Here is the definition:

If the appraiser determines that the area exceeds 25%
Thanks, I'm sure you are exceptionally more informed on the subject then I am, but what does the appraiser include or not include in their determination of 25%? Is it as simple as outside wall to outside wall length x depth or inside wall to inside wall length x depth (i'm dealing with an effective width 25ft x effective depth 125ft two story rectangular building) = TFA? Or... Does TFA include or exclude an attached garage (livable square footage does not)? Was kinda hoping pro's like you had a referenced answer. Thanks for your time, always enlightening. RD
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm no MAI but it seems quite simple to me.... Total GBA x .25 = max non-residential use.

So what's the 'real' question here....
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I'm no MAI but it seems quite simple to me.... Total GBA x .25 = max non-residential use.

So what's the 'real' question here....
The VA is not concerned with a non residential area in a garage, shed, barn, etc. They are concerned with 25% of what would be living area. Living area = floor area. Been doing this for 24 years on the panel.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
They are concerned with 25% of what would be living area
If there is a retail store in the basement (with walk-out access), would that be considered commercial exposure? We have a few of those in my market. Walk down the steps to the basement store type retail space.

Just trying to expanding my knowledge......
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
If there is a retail store in the basement (with walk-out access), would that be considered commercial exposure? We have a few of those in my market. Walk down the steps to the basement store type retail space.

Just trying to expanding my knowledge......
This is why I posted that it's whatever the appraiser determines. It's left up to the appraiser.
 

RocketDog

Thread Starter
Freshman Member
Joined
Aug 14, 2016
Professional Status
General Public
State
Kansas
Thanks to all.

jTip, the question is actually the question. There is a long backstory regarding county zoning and development regulations for business district work/live residential property versus VA requirements for a residential/commercial property, but the question remains - can somebody please provide a citable VA definition for Total Floor Area.

Backstory. Town I am working with is trying to revitalize its historic downtown section. Town realty market is influenced by VA eligible Service Members. Town is supporting the renovation of warehouses into condo's and encouraging single family residential occupation of downtown buildings as appropriate. However county zoning and development regs require 50% of the ground floor of all buildings in the business district to be (must be) commercial space. In order to abide by the county code almost all the properties the city is promoting for renovation would not be eligible for VA financing because the 50% first floor commercial space almost always exceeds the 25% VA TFA statement. I am putting together a packet to try to influence the county to amend their zone/dev regulations to accommodate VA mortgages and need some type of official VA definition of how TFA is calculated.

Don, I appreciate your experience and expertise and will use your input (as I will use all input from this thread), thank you. I am guessing VA commercial/residential properties are a pretty insignificant portion of the market and probably doesn't get much attention. However, with the 25% TFA commercial statement being such a explicit entry hurdle to clear before most buyers will order a VA appraisal to find out how the assessor will "determine" TFA. It just seems that TFA should be defined by VA if they are using as a quantifier for property eligibility.

RD
 
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