Documentation & Legal Requirements Flashcards
7 cards from real FHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Documentation & Legal Requirements flashcards as text
Which HUD handbook currently serves as the primary policy reference governing FHA Single Family appraisal requirements?
Answer: HUD Handbook 4000.1 (Single Family Housing Policy Handbook)
HUD Handbook 4000.1, the Single Family Housing Policy Handbook, is the consolidated primary reference for all FHA Single Family appraisal requirements.
Under FHA guidelines, what is the appraiser's documentation obligation when a property is located in a FEMA-designated Special Flood Hazard Area (SFHA)?
Answer: Note the flood zone designation and confirm flood insurance is available or required
The appraiser must note the SFHA designation in the report and confirm that flood insurance is available or required, though obtaining the certificate is the lender's responsibility.
What is the FHA definition of 'as-is' value versus 'subject to' value, and when must each be used?
Answer: 'As-is' reflects current condition; 'subject to' reflects value after required repairs or completion of construction
'As-is' value reflects the property in its current condition, while 'subject to' value reflects the property after required repairs or construction completion.
When must an FHA appraiser prepare a Field Review (Form HUD-92564-HS) addendum?
Answer: When the lender or HUD requests a review of a previously completed FHA appraisal
A Field Review is prepared when the lender or HUD specifically requests a review of a previously completed FHA appraisal to assess its accuracy and compliance.
For FHA purposes, how must the appraiser document access to a property that relies on a private road or easement?
Answer: Confirm and document that a legally enforceable easement or road maintenance agreement exists
FHA requires the appraiser to confirm and document that a legally enforceable easement or road maintenance agreement exists to ensure adequate access.
An FHA appraisal is completed, and the borrower subsequently makes renovations to the property. Who is responsible for ordering a new or updated appraisal if the improvements need to be considered?
Answer: The lender, who must order an updated appraisal or recertification through FHA Connection
The lender is responsible for ordering an updated appraisal or recertification of value through FHA Connection when post-appraisal improvements need to be considered.
Which statement best describes the FHA requirement for reporting gross living area (GLA) in an appraisal?
Answer: GLA includes only above-grade finished areas measured using ANSI Z765 standards or equivalent methodology
FHA requires GLA to include only above-grade finished areas, measured consistently using ANSI Z765 or an equivalent methodology disclosed in the report.