FHA Guide Answers



FHA Appraiser Inspection Checklist, Checklist Instructions and eBook

by Lore DeAstra

FHA Appraising: What Do You Know?

1.   What is FHAs primary program for rehabilitation and repairs of single-family properties?
a.       203(k) Rehabilitation Mortgages

2.   If you are a home inspector, how can you use your skills to become an FHA consultant?
a. .       http://www.hud.gov/offices/hsg/sfh/203k/203khow.cfm

3.   Which section allows a homeowner to borrow against the equity in their property that has limited outstanding debt?
a.       Section 255: Home Equity Conversion Mortgages (Reverse Mortgages, a.k.a. HECM)

4.   What is the purpose of declining urban areas?
a.       Section 223(e) is used to permit the use of FHA mortgage insurance in older, declining urban areas where there is a need for affordable housing.

5.   How do you appraise foreclosures for HUD?
a.       Real Estate Owned (REO) properties are appraised for M&M contractors. According to hud.gov, “The following list of prime contractors does not include all HUD prime contracts; only those M&M contractors that have been identified as having the potential for offering subcontracting opportunities. The contact information on this page is intended to provide a point-of-contact to those vendors who are interested in pursuing possible subcontracting opportunities with HUD’s current M&M contractors.” For more information, link to http://www.hud.gov/offices/cpo/primes/mandm.cfm