FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages > 1. Commencement of the Appraisal — a. Information Required before Commencement of Appraisal

FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Information Required before Commencement of Appraisal (04/10/2025)

Effective 2025-04-10 · publisher's stamp for this provision

a. Information Required before Commencement of Appraisal (04/10/2025) The Appraiser must obtain all of the following from the Mortgagee before beginning an appraisal: • a complete copy of the executed sales contract for the subject, if a purchase transaction; • the land lease, if applicable (see Leasehold Interest); • surveys or legal descriptions, if available; • any other property-related legal documents contained in the loan file; and • a point of contact and contact information for the Mortgagee so that the Appraiser can communicate any noncompliance issues. The effective date of the appraisal cannot be before the FHA case number assignment date unless the Mortgagee certifies that the appraisal was ordered for conventional lending or government-guaranteed loan purposes and was performed pursuant to FHA guidelines. When using an appraisal ordered originally for conventional lending or government- guaranteed loan purposes before the case number assignment date: • The appraisal must be in full compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), which requires that this be classified as a new assignment. The intended use of the appraisal must indicate that it is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage. Additionally, FHA and the Mortgagee must be indicated as the intended users of the appraisal report. • If the Appraiser determines that the scope of work is met with regard to FHA policy including MPR, MPS, and USPAP compliance, and further determines that a reinspection of the Property is not necessary, the effective date of the appraisal may be the date of the original inspection. • If an FHA-compliant inspection is required, the date of the new inspection will become the effective date of the new appraisal. b. Additional Information Required before Commencement of an Appraisal on New Construction (09/14/2015) The Appraiser must obtain, from the Mortgagee, a fully executed form HUD-92541, Builder’s Certification of Plans, Specifications, and Site, dated no more than 30 Days prior to the date of the appraisal order and documents related to New Construction, including plans, specifications, and any exhibits provided that will assist the Appraiser in determining what is to be built, or, if now Under Construction, what will be built when finished. c. Additional Information Required before Commencement of an Appraisal on a Property with an Exception from the Lead-Based Paint Poisoning Prevention Act (HECM Only) (04/29/2024) A Property’s ability to serve as collateral for the HECM program may qualify for an exception from the remediation of defective lead-based paint surfaces. To qualify for the exception under the Lead-Based Paint Poisoning Prevention Act (LPPPA), as amended by the Residential Lead-Based Paint Hazard Reduction Act of 1992, the Mortgagee must obtain the Borrower’s certification that the Property qualifies as housing for the elderly and that no child under six years of age resides, or is expected to reside, in the home. When performing an appraisal for a Property that meets the LPPPA exception requirements: • the Appraiser must receive from the Mortgagee a copy of the Borrower certification that the Property qualifies for the exception; • the repair of defective interior and exterior lead-based paint surfaces is not required to meet MPR and the appraisal report must reflect the impact of the Property’s defective lead-based paint surfaces; and • the appraisal report must prominently include the statement: “The mortgagee has identified that they have obtained borrower certification that this property qualifies for the exception from mitigating lead-based paint hazards under the Lead-Based Paint Poisoning Prevention Act.”

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09