CRMP CRMP Property Requirements and Appraisal Standards Questions and Answers 1

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

Eligible HECM properties include single-family homes, FHA-approved condominiums, and manufactured homes that meet specific HUD requirements.

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

Manufactured homes must be built on or after June 15, 1976, when the HUD Code for manufactured housing standards took effect.

Question 3

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

Accepted Answer

Fannie Mae Form 1004 (URAR)

Answer

The Uniform Residential Appraisal Report (Fannie Mae Form 1004/URAR) is the standard appraisal form required for single-family HECM properties.

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

Required repairs may be completed before closing or a repair set-aside can be established to ensure completion within a specified timeframe after closing.

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

When HUD requires a second appraisal, the lower of the two appraised values is used as the basis for the Maximum Claim Amount.

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CRMP CRMP Property Requirements and Appraisal Standards Questions and Answers 1