FHA 203K?

Good question.  I think I'd have to call Santa Ana for clarification.  Have you found any answers yet?

There really isn't much difference between the 203K and a regular FHA appraisal on your part. I scan the builder's estimate in my reports but other than that the commentary is the same in my reports for FHA. Just make sure you check the correct box when signing.

203k guidelines call for an "as is" appraisal with it's own comps... yuk and an "after improved" value appraisal with it's own comps... great. In 1995 Ken Crandall was the HUD rep on the 203k and we talked about that at length and came up with a less costly alternatitive that has been accepted ever since. Once your consultant or in the case of a steamline 203k, your contractor's  provides you with a 'scope of work' you then know what will be done to this building. Now you do just an 'after improved' value appraisal report. Now to comply with the guideline you will make a separate addendum sheet with a statement something like this... The after improved value of the subject property is $ XXX, the cost to cure or the cost of the rehab is $25,000. Therefore for the purposes of this appraisal report and the 203k loan program, the 'as is' value less the 'cost to cure' of $25,000 is the approximate 'as is' value of the subject proeprty which is $ XXX-25,000

Ths saves the borrower a full appraiser fee and has worked since 1995 on thousands of 203k projects. Hope this is helpful.

Don't get architectural exhibits mixed up with architectural plans. The architectural exhibits may or may not include any plans. The scope of work may be all the "architectural exhibits" you may get for your appraisal. The key is that the appraiser needs to feel there is enough detail in the write up given to you that you get the flavor of the rehab project. If the lender merely supplies you with the "recap of the sub-total" that isn't enough. You should ask for and receive the "work write up", the "bid specifiations", and the "recap of the sub-total" at a minimum. The work write up second paragraph typically tells you in long hand a general description of the work to be completed... you could copy and paste or paraphrase, the job specs will give you detail of the worked called for in each category. The recap of the sub-total will provide you with all the costs and fees including the contingency reserve. M

Thank you for the information. I have a home that came back with a low appraisal for their 203K loan and I am searching for options.