FHA Single Family Housing Policy Handbook IV. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages Table of Contents 1 FHA Single Family Housing Policy Handbook 2 TABLE OF CONTENTS 3 IV. APPRAISER AND PROPERTY REQUIREMENTS FOR TITLE II 4 FORWARD AND REVERSE MORTGAGES ..................................................... 1 5 A. ACCEPTABLE APPRAISAL REPORTING FORMS AND PROTOCOLS ................... 1 6 1. Mortgagee Requirements to the Appraiser ............................................................................... 2 7 2. Mortgagee Requirements to the Appraiser for New Construction ........................................... 2 8 3. Requirements for the Submission of the Appraisal Report and Data ....................................... 2 9 B. PROPERTY ACCEPTABILITY CRITERIA ..................................................................... 3 10 1. Application of Minimum Property Requirements and Minimum Property Standards by 11 Construction Status ................................................................................................................... 3 12 a. Existing Construction.......................................................................................................... 3 13 b. New Construction ............................................................................................................... 3 14 2. Appraiser Responsibility for Reporting Property Eligibility .................................................... 3 15 a. Defective Conditions .......................................................................................................... 3 16 b. Defective Conditions Requiring Repair .............................................................................. 4 17 c. Inspection by a Qualified Individual or Entity ................................................................... 4 18 3. Minimum Property Requirements............................................................................................. 4 19 a. Legal Requirements ............................................................................................................ 4 20 i. Real Estate Entity .......................................................................................................... 4 21 ii. Property Rights ............................................................................................................. 4 22 iii. Planned Unit Development ........................................................................................... 4 23 iv. Leasehold Interests........................................................................................................ 5 24 b. Legal and Land Use Considerations ................................................................................... 5 25 i. Party or Lot Line Wall .................................................................................................. 5 26 ii. Non-Residential Use of Property .................................................................................. 5 27 iii. Zoning ........................................................................................................................... 5 28 iv. Encroachments .............................................................................................................. 6 29 v. Easements and Restrictions........................................................................................... 6 30 c. Externalities ........................................................................................................................ 6 31 i. Heavy Traffic ................................................................................................................ 6 32 ii. Airport Noise and Hazards............................................................................................ 6 33 iii. Special Airport Hazards ................................................................................................ 7 34 iv. Proximity to High Pressure Gas Lines .......................................................................... 7 35 v. Overhead Electric Power Transmission and Distribution Lines ................................... 7 36 vi. Smoke, Fumes and Offensive Odors ............................................................................ 8 37 vii. Stationary Storage Tanks .............................................................................................. 8 38 d. Site Conditions .................................................................................................................... 8 39 i. Access to Property ........................................................................................................ 8 40 ii. On-Site Hazards and Nuisances .................................................................................... 8 41 iii. Topography ................................................................................................................... 9 8/27/14 i FHA Single Family Housing Policy Handbook IV. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages Table of Contents 1 iv. Suitability of Soil .......................................................................................................... 9 2 v. Subsidence .................................................................................................................. 10 3 vi. Operating and Abandoned Oil or Gas Wells .............................................................. 10 4 (A) Special Case - Proposed, Existing or Abandoned Wells ...................................... 10 5 vii. Slush Pits ..................................................................................................................... 11 6 viii. Property Eligibility in Special Flood Hazard Areas ................................................ 11 7 ix. Coastal Barrier Resources System .............................................................................. 11 8 x. Lava Zones .................................................................................................................. 11 9 xi. Mineral, Oil and Gas Reservations ............................................................................. 11 10 xii. Soil Contamination ..................................................................................................... 12 11 xiii. Residential Underground Storage Tank ................................................................... 12 12 xiv. Grading and Drainage .............................................................................................. 12 13 e. New Construction Site Analysis ....................................................................................... 12 14 i. Excess and Surplus Land ............................................................................................ 13 15 f. Characteristics of Property Improvements........................................................................ 13 16 i. Requirements for Living Unit ..................................................................................... 13 17 ii. Access to Living Unit ................................................................................................. 14 18 iii. Non-Standard House Styles ........................................................................................ 14 19 iv. Modular Housing ........................................................................................................ 14 20 v. Identifying an Accessory Dwelling Unit .................................................................... 14 21 vi. Additional Manufactured Home on Property ............................................................. 15 22 4. Gross Living Area ................................................................................................................... 15 23 a. Additions and Converted Space ........................................................................................ 15 24 b. Partially Below-Grade Habitable Space ........................................................................... 16 25 c. Bedrooms .......................................................................................................................... 16 26 5. Appliances............................................................................................................................... 16 27 6. Swimming Pools ..................................................................................................................... 16 28 7. Mechanical Components ......................................................................................................... 17 29 a. Heating and Cooling Systems ........................................................................................... 18 30 b. Electrical System .............................................................................................................. 18 31 c. Plumbing System .............................................................................................................. 18 32 d. Roof Covering ................................................................................................................... 19 33 e. Structural Conditions ........................................................................................................ 19 34 f. Defective Paint .................................................................................................................. 19 35 8. Attic Observation Requirements ............................................................................................