Chapter
1 Appraisal
and Property Requirements Page
1-08f For
final inspection guidance on "Under construction" or "existing less than one year
old" dwellings. Please see: HUD Handbook 4145.1
Chapter 6-3, also see the "Inspections"
found in the definition section this Guide under Construction and New Homes. If
the home is 100% complete at time of the appraisal and the appraisal is to serve
as the final:(This procedure does not apply to manufactured homes.)
- The appraiser
must have a complete set of the plans, specifications (as described in Section
C) including the Builders Certification HUD-92541 in
order to do the appraisal.
- The
appraisal serves as the final inspection and Form HUD-92051 is
not required:
-
The appraiser is to verify general conformance with plans and specifications;
-
Inspect for health and safety violations;
-
If no health and safety problems are noted and the property is ready for occupancy,
the appraiser is to make the following statement in the remarks section of the
appraisal: "This is a newly completed dwelling and appears to be in conformance
with the submitted construction exhibits."
-
Take a clear photograph (in addition to the standard appraisal photos) of each
diagonally opposite front and rear corner of the house to record adequate grading
and drainage of the site; and
-
Make a statement on the appraisal report of the acceptance of the grading and
drainage.
If the property is under construction and NOT 100% complete at time of appraisal:
- The
appraiser must have a complete set of the plans and specifications and the Builder
Certification in order to do the appraisal (as described in Section C).
- The
appraiser will perform the appraisal and call for a final inspection to be completed
by a FHA Fee Inspector; or, when applicable, the local authority or equivalent.
The appraiser will make the following statement on the appraisal report: "Property
under construction; complete according to submitted construction exhibits."
- When
the final inspection is completed by a fee inspector, the inspection will include
photographs as noted in Item 1 above along with a statement on the HUD-92051 as follows:
"This is a newly completed dwelling that was not completed under HUD or
VA inspections. The dwelling appears to be in conformance with the submitted construction
exhibits." Please see: HUD
Handbook 4145.1 Chapter 6-3.
The
Department requires that all utilities are on and fully functional during a final
inspection otherwise, the property is not 100% complete. Construction
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