FHA Releases New Frequently Asked Questions (FAQ)

Here are just a few of the topic's discussed in FHA's newest Frequently Asked Questions release:

What are the new construction documentation requirements for appraisers on properties 90% or more complete?

When a property is "Under construction, more than 90% complete with only minor finish work remaining…”, the appraiser is instructed to condition the appraisal "Subject to the following Repairs or Alterations" Who does the final inspection, an Inspector or an Appraiser?

Is the appraiser still required to report well, septic and property line distances on an addendum to the URAR or is this only required when problems are noted? How is the lender to determine if these distance requirements are met if the appraiser is not required to identify?

Does the appraiser determine what inspections are required or does the lender determine that?

Is an engineer's report (certification) still required for manufactured homes?

Can you confirm my understanding as to whether or not the DE Underwriter has the authority to waive cosmetic repairs if they are listed on the appraisal report? If so, does the DE Underwriter need to fill out a specific form or just leave the repairs off of the Conditional Commitment?

Who can perform repairs when the appraiser noted defective paint in a home built prior to 1978 in view of EPA’s new lead based paint Renovation, Repair and Remodeling Rule?

How should an empty or non-functioning in-ground swimming pool be treated? Does a swimming pool require perimeter fencing?

When is the cost approach required for an FHA appraisal?

If there is a manufactured home on the property, does it have to meet FHA standards if it is only being used for storage or has a family member living in it, but is NOT paying rent?

If conditions or physical deficiencies are found, are repair estimates still required on all items?

Are private road maintenance agreements still required?

Can information regarding sales of properties after the effective date of the appraisal be used?

If the appraisal is transferred from one lender to another must the appraiser cooperate with the second lender?

Click HERE for the complete FHA FAQ - Download FHA - FAQs 12-07-2012_1358966459