Fha loan appraisal rules.
Remaining economic life roof fha.
4 requirements and eligibility standards for a federal housing administration fha insured 5 mortgage.
Remaining economic life of the home.
The appraiser must visually examine the roof to determine whether deficiencies present a health and safety hazard or do not allow for reasonable future utility.
Requirements for remaining economic life.
For condominium units the estimate of remaining economic life must be reported in the reconciliation section of fannie mae form 1073 individual condominium unit appraisal report.
Fha single family housing appraisal report and data delivery guide effective on or after march 15 2016 v2.
According to the fha website they have clearly stated that the roof should be able to last for a minimum of two years.
If it is determined that the roof has a remaining life of less than two years then it would be the responsibility of the appraiser to call for repair or the construction of a new roof.
4905 1 rev 1 2 12 life expectancy.
Hud 4000 1 says the appraiser must notify the mortgagee of the deficiency if the roof covering does not prevent entrance of moisture or provide reasonable future utility durability and economy of maintenance and does not have a remaining physical life of at least two years.
If the roof has less than two years remaining life then the appraiser must call for re roofing or repair.
There are instructions to the lender concerning issues such as encroachments overhead power lines safety and related issues.
To be specific the following has been taken from the hud handbook 4000 1 regarding the fha rules for the roof.
The roof should have a remaining physical life of at least two years.
However the 6 appraiser is the on site representative for the mortgagee and provides preliminary verification 7 that the property acceptability criteria have been met.
One of the fha rules for the roof requires the appraiser to report if it has less than 2 years remaining life and require it to be replaced.
If the estimate of remaining economic life is 30 years or more the appraiser must state the estimate at its maximum for example 40 years.
47 planned unit development information section.
The appraiser must exercise sound judgment when evaluating roof condition.
Hence the interest in the remaining economic life of the home in general and the roof in particular.
The appraiser must clearly state whether the subject is to be repaired or re roofed.
46 income approach section.
Mortgagees bear primary responsibility for determining eligibility.
Fha minimum property requirements in hud 4000 1.
This of course is a judgment call that the appraiser is required to make.
Hud 4000 1 has a section with guidelines concerning the minimum property standards for homes to be purchased with an fha mortgage.
An fha appraiser is required to view the roof but does not.
