LinearFHA 203k appraisal guidelines (resources)
by Kathy Roberts 
, Monday, June 15, 2009, 18:26
I have been asked by a company to do an FHA 203k loan appraisal.
I originally turned down the appraisal order for lack of experience with this type of loan.
They called me back and said noone would do the appraisal. Could I get the knowledge and do it anyway.
I'm thinking the appraisal should be done 'subject to' completion of the repairs and improvements indicated in the purchase and sale.
An FHA 203k loan allows for a home to be remodeled after the original purchase. So the P&S for this report has 20 pages of improvements listed with the total cost for each.
The selling agent, informed me that I was to do 3 appraisals. One 'as is' with no work orders. One 'subject to'..... And then a 442 completion after work is done.
What do you all think??? Any advice?
Kathy
FHA 203k appraisal guidelines
Why cant you just subject the appraisal to completion, and then just do draw request/phase inspections?
FHA 203k appraisal guidelines
by Dan , Wednesday, July 01, 2009, 02:11 @ Kathy Roberts
Kathy,
There should be a 203k FHA consultant assigned to this loan. FHA will send out a contractor who will determine what needs done. You can get a copy of his / her cost estimates and scan them directly into your report. If it is a contractor make sure there is no "deal or discount" to a friend. If so, adjust your costs. Do the appraisal subject to completion just like it is new construction. You do not do 3 appraisals. The realtor is an idiot.
Confirm this with the lender. I have done 8 of these but lost them all when my files crashed. Each time a 203k appraisal is done an approved FHA contractor or consultant was assigned to quote the job. A good way to check if the contractor knows what he is doing is take your GLA that is being rehabbed and divide it into the proposed "rehab" cost figure. Then call 2 to 4 local contractors to ask what their cost per sq. ft is to renovate. Tell them style of house and level of finish: tile floors, granite countertops, etc whatever applies.
Hope this helps and in the future take what a realtor who is receiving a commission on the deal with a big grain of salt. :-)
all the best - Dan
