1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71).
2. At least 2 comparable sales within 90 days of appraisal date.
3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables.
4. Bracketed listings using both dwelling size and sales price when possible.
5. Adjust active listings to reflect the List To Sales Price Ratio.
6. Adjust pending sales to reflect contract sales price when possible.
7. Include original list price and any revised list prices.
8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales.
9. Absorption Rate Analysis.
10. Known or reported sales concessions on active and pending sales.
FHA also is restating its warning that..."Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA."
If the above appraisal guidelines look foreign to you, that's okay, because this update is intended for Appraisers and Underwriters. I sent this to make yourself an FHA resource in your market.
If you have any questions or if I can be of service to your clients, please let me know
Candy Olson
Sr. Loan Consultant
801-244-0187
So, there you have it. New hoops to jump through as we try to make our way through the home financing maze.
I hope this information is helpful and will give you a better understanding of the home purchase ordeal, and that you will see that you need a team of proffessionals to help you along the way.
That team includes the advise of a Realtor to help you make sense of it all.
If you dont have a Realtor, We'd like to apply.
Were experienced, responsible, and serious about our responsibility of being your trusted advisor.
To get a feeling for who we are and how we feel about this business click on our web-site, Salt Lake Real Estate.
If you like what you see, give us a call @ 801-567-0946.
We can discuss the new FHA Appraisal guidelines or show you how NOT to make Home Sales Real Tough !