CRMP CRMP Property Requirements and Appraisal Standards Questions and Answers

Question 1

Which property types are eligible for a HECM loan?

Accepted Answer

Single-family homes, HUD-approved condos, and manufactured homes meeting FHA standards

Answer

Only single-family detached homes

Answer

Any residential property regardless of condition

Answer

Only properties with no existing mortgage

Question 2

What is the minimum age of a manufactured home to be eligible for a HECM loan?

Accepted Answer

Must be built on or after June 15, 1976

Answer

Must be built after January 1, 1990

Answer

Must be built after January 1, 2000

Answer

Age is not a determining factor for manufactured homes

Question 3

Which appraisal form is required for a standard single-family HECM property appraisal?

Accepted Answer

Fannie Mae Form 1004 (URAR)

Answer

Fannie Mae Form 1025

Answer

HUD-92051

Answer

Freddie Mac Form 72

Question 4

What action must be taken if a HECM appraisal reveals required property repairs?

Accepted Answer

Repairs must be completed before closing, or funds may be set aside for completion after closing

Answer

The loan must be denied

Answer

The appraised value is automatically reduced by repair costs

Answer

The borrower receives no funds until repairs are complete

Question 5

What is the maximum loan-to-value impact when a second appraisal is required for a HECM?

Accepted Answer

The lower of the two appraisals is used to determine the MCA

Answer

The average of both appraisals is used

Answer

The higher appraisal is always used to benefit the borrower

Answer

The lender chooses which appraisal to use

Question 6

Which property condition would automatically disqualify a home from HECM eligibility?

Accepted Answer

Structural deficiencies that pose a safety hazard and cannot be repaired

Answer

An older roof with minor wear

Answer

Outdated kitchen appliances

Answer

Absence of a swimming pool