FHA Documentation & Legal Requirements 3

Question 1

Which HUD handbook currently serves as the primary policy reference governing FHA Single Family appraisal requirements?

Accepted Answer

HUD Handbook 4000.1 (Single Family Housing Policy Handbook)

Answer

HUD Handbook 4000.1, the Single Family Housing Policy Handbook, is the consolidated primary reference for all FHA Single Family appraisal requirements.

Question 2

Under FHA guidelines, what is the appraiser's documentation obligation when a property is located in a FEMA-designated Special Flood Hazard Area (SFHA)?

Accepted Answer

Note the flood zone designation and confirm flood insurance is available or required

Answer

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.

Question 3

What is the FHA definition of 'as-is' value versus 'subject to' value, and when must each be used?

Accepted Answer

'As-is' reflects current condition; 'subject to' reflects value after required repairs or completion of construction

Answer

'As-is' value reflects the property in its current condition, while 'subject to' value reflects the property after required repairs or construction completion.

Question 4

When must an FHA appraiser prepare a Field Review (Form HUD-92564-HS) addendum?

Accepted Answer

When the lender or HUD requests a review of a previously completed FHA appraisal

Answer

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.

Question 5

For FHA purposes, how must the appraiser document access to a property that relies on a private road or easement?

Accepted Answer

Confirm and document that a legally enforceable easement or road maintenance agreement exists

Answer

FHA requires the appraiser to confirm and document that a legally enforceable easement or road maintenance agreement exists to ensure adequate access.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Documentation & Legal Requirements 3