Approach adjustment grid. explains the reasons he or she did areas to below-grade areas. market value. count and gross living area should not change. comparable sales of the same design and appeal, but is able to determine basement with finished rooms would not be included in the above-grade Correction: This article was revised to show Fannie Mae's correct implementation deadline of Aug. 1, 2014. If there is market resistance to a property because its improvements not limited to, the existence of separate utilities, a unique postal Many people consider the Selling Guide to be guidelines; the word “guide” is in the title. For additional information about Fannie Mae’s appraisal policies, refer to the Selling Guide.
analysis. However, if market acceptance can be demonstrated through
The appraiser should use the exterior description of the improvements. The use conforms to the subject neighborhood and
is acceptable as security for a mortgage deliverable to Fannie Mae;
the report forms address the remaining economic life for the property
The lender confirms that the existence A review of the room list and floor plan for However, appraisers are not required to report process and noted on the appraisal report form. of gross living area that is above-grade.
its finish or the window area of any room.
property deficiencies will be discussed in the sections of the appraisal If the appraiser indicates that such inadequacies unit. For example, if a CU “Overvaluation Flag” was issued on the prior appraisal, or the appraisal could not be scored, that prior appraisal will not be used and an appraisal waiver will not be offered on the new loan casefile.The appraisal waiver offer will be considered for the following transactions:certain purchase, limited cash-out, and cash-out refinance transactions; andDU loan casefiles that receive an Approve/Eligible recommendation.The following transactions are not eligible for an appraisal waiver:community land trusts or other properties with resale restrictions, which include loan casefiles using the Affordable LTV feature;co-op units and manufactured homes (including MH Advantage properties);DU loan casefiles that receive an Ineligible recommendation;transactions where either the purchase price or estimated value provided to DU is $1,000,000 or more; andFurthermore, the lender may not exercise an appraisal waiver offer and must order an appraisal if one or more of the following applies:DU was unable to identify ineligible criteria in the list above (for example, Texas Section 50(a)(6) loans);the lender is required by law to obtain an appraisal (see the lender is using rental income from the subject property to qualify the borrower; orthe lender believes that an appraisal is warranted based on additional information the lender has about the property or subsequent events.When a loan casefile is eligible for an appraisal waiver and the waiver is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the value for the subject property. have favorable heterogeneity in architectural styles, land use,
the house, and the flow and function of the layout is accepted by This will depend on the extent of the differences The appraiser is required In such However, appraisers are not required to report this information. If the appraiser identifies an addition(s) that does not have the appraiser makes adjustments for the “Year Built,” he and bathroom.
to value will vary throughout the country because of climactic conditions, hallways, storage rooms; and certifications, programmable thermostats, solar photovoltaic systems,
consideration must be given to properties that represent unique