HUD HOC Reference Guide

Private Roadways

Chapter 1
Appraisal & Property Requirements
Page 1-15

A. General: For reference please see: 24 CFR sec. 200.926d, HUD Handbook 4150.2, Section 3-6A.7 and FHA Mortgagee Letter 2005-48

  1. Each property shall be provided with vehicular or pedestrian access by a public or private street.
  2. If the property is not provided with an all-weather surface, note the absence of such in the appraisal. FHA defines all-weather surface as a road surface over which emergency and the area?s typical passenger vehicles can pass at all times.
  3. Private streets and shared driveways must be protected by permanent recorded easements or be owned and maintained by a Home Owners Association (HOA).

B. Underwriters' Review:

The recorded easement must be reviewed and approved by the Direct Endorsement Underwriter and documented in the Lender?s file at the time the loan is submitted for mortgage insurance.

Evidence of a road maintenance agreement is not required.

Content Archived: October 25, 2012