Home appraisal checklist form for va loan11/24/2023 ![]() DE-designated (Direct Endorsement) underwriters can issue underwriting approvals for FHA loans. Firstly, HUD has a manual for their first trust deed lending program that is over 1100 pages long for loans insured under their FHA insurance (HUD) loan programs, of which the HECM reverse mortgage is one and a separate manual for the appraisal portion dealing with properties and their valuation that is over 900 pages long. I can shed a little light on your issues. Hence, we let borrowers know the obvious issues that will be reported and allow borrowers to address those issues if they can. Still, I said, you sometimes need to figure out what the appraiser will note in the report. In that case, you can save a little money by not having to pay for reinspections. Suppose you can do the repairs that would be needed. It is up to the lender to determine that the home meets HUD's requirements based on that report. ![]() There is no "passing appraisal." The appraiser merely reports on the condition and value of the home. That would include things like no stair railings where someone could fall, unhealthful mold, exposed electrical wiring that could cause shock or fires, etc. The only time a repair set aside is not allowed is when the repair is health and safety related. Funds above the repair cost are freed up for availability to the borrower by the loan terms. The funds are left in the loan at an amount of 1.5 times the cost of the repair and then disbursed after the repair is completed. Luckily, most needed repairs can be made after the loan closes if the borrower needs to do that using a "repair set aside." This is where the borrower gets an estimate from a contractor of their choice for the repair. Some repairs cannot be done before the appraisal due to the scope of the repair, because of weather, the time it takes to have the repair completed, or possibly the cost of the repair. ![]() In that case, it saves you some money on reinspection, so we point them out in advance. Suppose these conditions are corrected before the appraiser comes. Bare wood allows for termites and other wood-destroying pests, which is another concern of HUD. Painted surfaces can be painted quickly and easily in most cases with a small amount of paint from your local hardware store to avoid the issue of chipped and peeling paint (many paints contain lead, and HUD will not allow the presence of peeling paint). Borrowers still have a choice when some of these items are pointed out in advance to keep from having to fix or repair them later. These items are on the checklist because they are most frequently found and must be corrected before the loan closes. The checklist mentions chipping and peeling paint, exposed electrical wiring, unpainted wood surfaces, water leaks, staircases without handrails, and common roof issues. Once the appraisal is in hand, the lender can determine the amount you will be eligible to receive from your reverse mortgage loan. ![]() On the final appraisal, you will see all of the data used in determining the value of your home. After tallying comparable sales and the complete picture of your home, the appraiser will deliver his or her appraisal to you and to your reverse mortgage lender. The research. Armed with photos and notes on your home, the appraiser will then conduct his or her own research to determine comparable home sales in your area.He or she will focus on any areas that may be in need of repair, as well as specific features of the home that could contribute to-or take away from-its value. The inspection. During the inspection, the appraiser will walk through the home with you and will take any necessary photos as part of the research process.It’s a multi-step process, but you can prepare in advance to make it as smooth as possible. Here’s what you need to know so that you can manage your expectations about getting your home appraised as part of this loan to help you age in place. Getting a home appraisal is an important part of the reverse mortgage process.
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