Where does "make it or break in" come into play in HUD Appraisals?

[autobot]

I hear there are certain things that will cold kill any Govt Backed Loan approval, such as "no durable floor covering" in any room. You can have an otherwise perfect McMansion, but if one bedroom is missing carpet because "let the new owners choose" it will flat fail.

Ditto with stuff like certain # of hours Fire Rated ceiling in garage if any living space is above said garage.

My question is where and who exactly in the overall process do these Loan Killers get evaluated? Do Appraisers have a big list of known Loan Killers and they are trained to be sure and flag them if noticed, and does the flagging and Loan Kill happen at the Appraiser level, or does the Appraiser check certain very important boxes for the banker, or is the banker required to check the Appraisal for the known Loan Killers?

I hear among Loan Killers are stuff like plumbing, electric and HVAC need to be functioning, but I didn't notice any such stuff being checked, mentioned or entered on any Aivre.com demo UAD 3.6 walk-throughs. Is that some separate section of "manual in person physical" that isn't in the main 3.6?

EDIT: at least the "Utilities" part is covered at 0:17:05 min mark of this Aivre webinar

where host Billy says "on and operational" and it has drop downs for "type" and "ownership" and up to 100 char for Comments, then just below that is "Apparent Defects, Damages, Deficiencies" with "Yes/No" and up to 5000 chars for Comments. Is that were stuff like missing carpet or no Fire Rated ceiling and other known Loan Killers would go?
Is there any main official Rule Book for Appraisers as to what is an official "Defect"?

I'm thinking in terms of creating "UI software automation" scripts using AI software such as Vprop.AI to analyze DIY photos and fill out those forms. As is, Vprop is programmed to act like a Seller's agent and call out the good features, so I guess it could see that the faucets are running nicely and producing steam, and that the AC is blowing ribbons tied to grill, etc.

 

[OSU Beavers]

Crawlspace height of less than 18".

I used to carry a yard stick cut in half to photograph in crawlspaces. The stick was nicknamed "The Deal Killer".

 

[Dublin ohio]

Many "deal killers" occur if the seller in a purchase does not choose to cure them. But there is also the alternative of a 203k rehab loan. Many agents will list a property and state no FHA or VA due to existing conditions and seller not willing to do repairs. The 3.6 is not geared for FHA additional requirements (neither was 2.6)

 

[Tom4value]

For 3.6 UAD inspections, calm the truck down! I see only 3 major things we have to do differently.
1. Measure the height of the front door. Break out the laser and measure after you ring the doorbell.
2. Measure the heights of the ceilings. Explain why your laser is on the floor.
3. Ask the broker/owner if there is broadband. If they say, “what is that?”, say, “nevermind” and mark, “ no”.

 

[Airstream]

For 3.6 UAD inspections, calm the truck down! I see only 3 major things we have to do differently.
1. Measure the height of the front door. Break out the laser and measure after you ring the doorbell.
2. Measure the heights of the ceilings. Explain why your laser is on the floor.
3. Ask the broker/owner if there is broadband. If they say, “what is that?”, say, “nevermind” and mark, “ no”.

One more…estimate the age of the roof. Good luck with that.

 

[Airstream]

I would say in rural properties this was the major deal killer: well in basement. Drainfield not 100’ from well.

 

[Surf Cat]

I would say in rural properties this was the major deal killer: well in basement. Drainfield not 100’ from well.

A well in the basement?!

 

[Airstream]

A well in the basement?!

Yes. In Wisconsin they can put drilled wells or sand point wells in the basement as long as it is a walkout. I saw it all kinds of places. And it killed the FHA loan despite it being legal in the state.