FHA 4000.1 Handbook FAQ
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FAQ PDF Document
In June 2015, the Denver HOC conducted a webinar (or perhaps live class) training on the ‘then upcoming’ new FHA 4000.1 Handbook. Questions were submitted, and the answers were compiled into a FAQ PDF document (posted at the end of this article).
Many of the questions were submitted by underwriters or other non-appraisers, but some were from appraisers. You will have to read through the 8.5 page FAQ PDF attachment to find appraisal related info.
However, the one question and answer below may help alleviate the fears of some appraisers:
Q. Does the appraiser have to note on the appraisal that an inspection of the attic was completed or is it acceptable for the appraiser to only state that the property meets minimum property standards and it is assumed the inspection was completed?
A. None of those are required. The appraiser does not have to say whether or not they inspected the attic or crawl space. Since the appraiser is required to include pictures of the attic or crawl space, the inspection is assumed when pictures are provided. The appraiser also does not have to state that the property meets minimum property requirements.
The appraiser does have to report any deficiencies, but they don’t have to report everything that’s good about the property.
Now, I don’t claim to be the ultimate expert on FHA policy. The above appears to be somewhat contradictory with what the 4000.1 Handbook, and the Data Delivery Guide say. If it is, those must be followed, not the FAQ.
Or it could be that many appraisers are having trouble actually understanding the FHA material because quite frankly, some of that is convoluted because on one hand FHA forces the appraiser to be a quasi-home inspector and systems operator, and on the other hand says the appraiser is only ‘observing, analyzing and reporting’ items with the property.