There is no requirement by FHA for the remaining economic life when appraising a condominium (1073). There is a requirement for inclusion of the remaining economic life for a 1004, 1025, and 1004C.
Some underwriter wanted it and I couldn't find anything that said specifically that it was or was not applicable to a condominium. I have never been requested it before, so I figured it was a fluke. I just wanted to make sure. I was looking for an exact line or section that I could have quoted, but I searched and searched and couldn't find anything.
what's the big deal???
fha may not require it but your underwriter does.
simply state in your addendum, if you do one, that the remaining economic life is estimated to be-----.
it's not worth making the underwriter mad.
this is another example of "the underwriter knows best". it is also another example that all underwriters do not know the guidelines.
i have a simple set of guidelines. if the underwriter wants something, eventhough it is not needed or is wrong, i provide it and simply state in my scope of work the instructions from the underwriter.
if i was to argue with every underwriter who wanted something not required or that was wrong, i wouldn't have any customers.
page 35, section 9, under cost approach, appendix d states that the appraiser should state the remaining economic life as a single member or in a range. an explanation is to be provided if the remaining econimic life is less than 30 years even if the cost approach is not completed. this line must be completed for every fha appraisal. it does not say that it is not required for a condo.
i generally make a statement in all my fha appraisals, single family or condo, pertaining the remaining economic life. always have and most likely, always will. its kind of like inspecting the attic and crawl spaces areas. i would rather do these things than not.
BK43 - You have fallen from grace. Page 35 of Appendix D describes requirements for a single family residence. Page 61 describes exactly the same requirement for a manufactured home. Page 130 describes the same requirement for a multi-family dwelling.
The requirement is conspicuously missing from Section D-3 of Appendix D which describes the protocol for a condominium. You cannot transport the requirement of one section of Appendix D to another.
There is no requirement for the remaining life of a condominium but there is for a single family residence, manufactured home and multi-family dwelling.
But for FHA remaining economic life is required. Straight from HUD. http://www.hud.gov/offices/hsg/sfh/appr/aprval.pdf
See 3. Where does the appraiser insert Remaining Economic Life on the condo form to comply with FHA reporting requirements?
It is to be entered in the Reconciliation section of the form 1073 as a statement similar to that contained in the cost approach section of the other three FHA approved forms, i.e. "Estimated Remaining Economic Life ______ Years."
