HUD HOC Reference Guide

Construction & New Homes: Introduction

Chapter 1
Appraisal & Property Requirements
Page 1-08a

A. Introduction | B. Construction definitions | C. General requirements | D. Minimum property standards
E. Subdivision approvals | F. Final inspection on properties

A. Introduction

It is the appraiser's responsibility to determine the exact category of "CONSTRUCTION" they are appraising. This is reported on page 1 of the URAR in Description of Improvements.

The "category" in which the appraiser reports the construction status is important for several reasons:

  • Determines the high or low-ratio status of the mortgage to be insured by FHA.
  • Determines the specific Conditional Commitment Requirements.
  • Provides the Direct Endorsement Underwriter the proper information needed to determine exactly how to process the case.

The condition of the site on the date the appraiser makes their on-site appraisal inspection (i.e. date of valuation) determines the project's construction status.
 
Content Archived: October 25, 2012