Sacramento FHA Appraiser

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Does FHA Allow Bare Wood? – A Tidbit for FHA Appraisal Inspections in the Sacramento Area

July 8, 2009 in FHA Appraisal | 10 comments

Here is one quick tid-bit for FHA appraisal inspections:

Does FHA allow bare wood on the exterior of a house?  No. Regardless of the age of the house (pre-1978 or newer), wood must not be bare and exposed directly to the elements. This goes for both the house and any structure on the property (outbuilding, shed, barn…). 

Regarding required repairs, it is common for HUD to require repairs when there is bare wood, a defective paint surface (chipping, flaking, cracking or peeling paint) or evidence of active infestation by wood destroying insects. In these instances, the first step is to cure the defective paint surface or replace the damaged wood if applicable and make sure to properly seal the structure (sealant or paint). 

Please let me know if you have any questions. I am experienced with FHA appraisals and I am doing quite a few of them these days. Lenders, banks, loan officers, brokers and home owners can still choose their own appraiser for FHA deals and I would be very glad to be selected by you.

http://www.lundquistcompany.com/blog  Does FHA Allow Bare Wood? – A Tidbit for FHA Appraisal Inspections in the Sacramento Area

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What types of repairs does HUD require for an FHA loan in the Sacramento Area?

June 25, 2009 in FHA Appraisal | No comments

images1I find myself doing quite a few FHA appraisals these days in light of the enormous popularity of FHA loans in the Greater Sacramento Region. Sometimes properties are able to easily meet FHA minimum standards, but other times houses might need just a little work (or quite a bit) to bring them up to the level required by HUD.

The primary concern of HUD as it pertains to a property is with safety, soundness and security. The basic gist is that for HUD to guarentee a loan, a property must not have any issues that present a threat to safety, security or soundness.  Minor cosmetic issues don’t fall under this category, so a crack in a window or a stain on carpet or a missing doorknob are not a big deal for FHA loans (so long as there is no threat to safety, security or soundness). Other condition issues though such as peeling or chipping paint, an inoperable heating system or a leaking roof are a big deal to HUD because they do impact safety, security or soundness.

At times it is easy to think that appraisers are being knit-picky over minor issues that could easily be overlooked while inspecting a property, but take a look firsthand what FHA requires for repairs (click HERE).

If you ever have questions about FHA-related required repairs or FHA real estate appraisals in the Sacramento Area (multiple counties surrounding Sacramento), you are welcome to contact me at 916-595-3735 or www.lundquistcompany.com or LundquistCompany@gmail.com  Lastly, you may find HUD to be very helpful when you call (800)CALL-FHA.

http://www.lundquistcompany.com/blog   What types of repairs does HUD require for an FHA loan in the Sacramento Area?

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What does it take for a Sacramento area property to meet minimum FHA requirements?

June 13, 2009 in FHA Appraisal | No comments

hudWhat does it take for a property to meet minimum FHA requirements? This is a very important question because FHA loans have become extremely popular in the Greater Sacramento Region, especially among first-time buyers.

FHA is primarily concerned that everything in a house functions properly and that there are no health and safety issues. As an FHA approved real estate appraiser, the inspections I do are based upon guidelines from the United States Department of Housing & Urban Development (HUD). Here is a sample of some of the things I look for while on an inspection:

  • Appliances must be in functional use. If there is a hood, it must work. If there is a dishwasher it must work. If there is a stove, it must work…
  • The heating unit must be in working order (and AC if applicable)
  • Paint must not be chipping, peeling, or flaking on homes built before 1978. There must be no defective paint or exposed wood for properties built after 1978. If there is an issue with paint, it needs to be cured properly by actually scraping the paint instead of just painting over with new paint.
  • The water pressure must be adequate for the house. Appraisers flush toilets, turn on all faucets and ensure that both hot and cold water are working.
  • The water heater must be in working order.
  • The attic must be inspected and we make sure that there are vents, no evidence of a previous fire, no exposed or frayed wires, and that sunlight is not beaming through.
  • Attics and crawlspaces are to be viewed at least with head and shoulders into them (if present)
  • The crawl space must be inspected and we make sure there is not excessive debris or signs of standing water or any other foundation support issues.
  • Electrical outlets must work.
  • Toilets must flush and be mounted
  • No leaks in the roof.
  • The carpet does not have to be perfect (stains or minor tears okay). If there is a health or safety issue with the flooring, then that is a red flag. 
  • A house does not need new interior paint.
  • Windows cannot be broken. Cracks can be okay so long as there is not an issue with safety, soundness and security.
  • No dangling wires from missing fixtures.
  • Water heaters must be properly attached with straps (local code says that water heaters need to be strapped and FHA requires water heaters to meet code).
  • Stoves are not required unless they are drop in stoves.
  • FHA doesn’t require air conditioning, insulation, smoke detectors or the like, but if they are there they must work as they were intended.

Please let me know if you have any questions. I am glad to help buyers, agents, brokers and anyone else know more about FHA standards and the appraisal process. The great thing about FHA loans too is that the buyer, agent or broker can readily choose whatever appraiser he/she wants because HUD is not bound by HVCC (this is a new law that basically means that brokers and loan officers cannot directly order appraisals from real estate appraisers when the loan is geared toward Fannie Mae). You are welcome to contact me (Ryan) at 916-595-3735 or LundquistCompany@gmail.com

http://www.lundquistcompany.com/blog  What does it take for a Sacramento area property to meet minimum FHA requirements?

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New Lundquist Appraisal Company Promo Video

May 3, 2009 in Internet Stuff | No comments

We have a new promo video. What do you think?

http://www.lundquistcompany.com/blog New Lundquist Appraisal Company Promo Video

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“Arden Manor” Neighborhood in Sacramento – Real Estate Market Trends

April 17, 2009 in Arden Manor, Neighborhoods, Sacramento | No comments

The “Arden Manor” neighborhood is located off of Watt Avenue just South of Arden Way and West of the “Arden Park” area. The map below depicts the boundaries of what is referred to as ”Arden Manor”. The subdivisions due West, East & South tend to have larger houses and lot sizes and are deemed less comparable to Arden Manor.

arden-manor-sacramento-neighborhood

The Arden Manor subdivision consists of single-story houses for the most part which range from 2-3 bedrooms typically. Houses usually have a 1-car garage and tend to be between 930-1200 square feet in size (930 and 1081 are two of the most common sizes). There are a number of households with either converted garages or additions. I have appraised quite a few houses in this neighborhood over the years.

Below are two trend graphs to depict sales over the past 36 months as well as current listings in Arden Manor as of today. 

arden-manor-36-months-of-sales-sacramento-neighborhood

arden-manor-current-listings-sacramento-neighborhood

If you have any questions regarding “Arden Manor” real estate market trends or have any appraisal-related needs in the Sacramento Region, please give me a call at 916-595-3735 or shoot me an email at ryan [at] lundquistcompany [dot] com. Our company website is located at www.lundquistcompany.com.

http://www.lundquistcompany.com/blog  “Arden Manor” Real Estate Market Trends – Sacramento

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Unemployment Rates in the Sacramento Area: What Effect Does Unemployment Have on the Housing Market?

March 30, 2009 in Market Trends, Sacramento, Unemployment | 1 comment

How are unemployment levels doing in Sacramento County right now? How is your city or area doing? Have a look at the data below to check out your area or places nearby to where you live. Do you think there is any impact on property values when unemployment rises? Might this lead to more foreclosures? Do you think the large decline in price levels over the past year in many areas below might be related in part to the large percentages of unemployment which have increased sharply? Does it seem like some of the hardest hit areas are also struggling with higher unemployment rates?

Unemployment Rates are based upon information provided from the Employment Development Department from February 2009.

 

State of California      10.1%     

State of California One Year Ago   6.2%

Sacramento County    10.7%

                                     

Arden Arcade CDP      10.4%

Carmichael CDP          7.9%

Citrus Heights city      7.5%

Elk Grove CDP            8.7%

Fair Oaks CDP            5.9%

Florin CDP                 16.0%

Folsom city               4.8%

Foothill Farms CDP      13.7%

Galt city                   16.2%

Gold River CDP           1.8%

Isleton city               11.5%

La Riviera CDP            5.8%

Laguna CDP               5.5%

Laguna West Lakeside CDP   7.2%

North Highlands CDP    15.8%

Orangevale CDP          7.6%

Parkway South Sacramento CDP   18.0%

Rancho Cordova City   12.3%

Rancho Murieta CDP    3.3%

Rio Linda CDP             15.7%

Rosemont CDP            8.4%

Sacramento city         12.5%

Vineyard CDP             4.9%

Walnut Grove CDP       23.6%

Wilton CDP                 6.5%

 

For further reference and to look up unemployment information and rates on any county or city in California, see the following links:

 

If you have any questions about the data above or any other appraisal-related issues or thoughts, contact me at 916-595-3735 or www.lundquistcompany.com 

http://www.lundquistcompany.com/blog  Unemployment Rates in the Sacramento Area: What Effect Does Unemployment Have on the Housing Market?

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