Mitchell6024/quickb · Datasets at Hugging Face

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e276a2a5-4200-4e5c-95a3-06c86301a0f7	Appraisal Fee Collection Issues Change Date March 11, 2019 • This chapter has been revised in its entirety. a. When an appraisal is ordered, the requester must certify in WebLGY that the Certification appraisal fee has been collected and is being held to be paid to the appraiser. Fee to be Paid b.	VA_Guidelines.txt
f5508ef3-2108-46b4-bbb7-a733eb0057fd	Fee to be Paid b. Timely VA expects requesters to pay the appraiser within 30 to 45 days after the Payment of NOV is issued or it is determined by VA that an NOV will not be issued. the Fee c. RLC Appraisers may notify the RLC of jurisdiction about ongoing, documented Assistance issues collecting fees. The RLC may contact the requester to resolve the Collecting issue.	VA_Guidelines.txt
33628fb8-957a-4bd6-a538-2ab807b25bbb	In the event that the requester fails to pay the appraisal fee, the RLC Overdue Fees may require advance payment from the requester on future appraisals. d. VA Appraisers may not require advance payment from requesters or charge late Authorization fees unless approved in writing by VA. of Advance Fees 10-38 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 26.	VA_Guidelines.txt
94009a28-85db-4d24-8fc4-f148c491c744	Request from the Veteran to Change Lenders Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lender Lenders are expected to cooperate when a Veteran decides to change lenders. Responsibilities The lender who ordered the appraisal must transfer the case to the new lender when requested by the Veteran in writing (including email).	VA_Guidelines.txt
d4751246-792f-4fcd-b539-ce5aa4d72604	An appraisal report and case number may be transferred to another LAPP lender in WebLGY by a SAR of the original lender. The new lender should provide to the Veteran, their email address, phone number, and VA Lender ID number to be included in the Veteran’s letter to the original lender. b. New An NOV issued by a SAR is not transferable to another lender.	VA_Guidelines.txt
3e04e804-4d54-4fba-874f-9d73a83a03ce	The new Lender Must lender’s SAR must review the appraisal and issue a new NOV to the Veteran. Issue the NOV c. Lender Not If the new lender does not participate in LAPP, the Veteran’s request to Approved for change lenders must be submitted to the RLC of jurisdiction. The RLC will LAPP issue the NOV. 10-39 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 27.	VA_Guidelines.txt
90737e9b-b6fc-42db-bf67-41dd1325593f	Natural Disaster during the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lenders are required to check the FEMA website at www.fema.gov/disasters Declarations for the specific lists of counties and disaster declaration dates.	VA_Guidelines.txt
986287d2-806f-4bf3-a5ba-26e80a7740aa	Disaster Listed Online information is also provided on the VA Home Loan website at https://www.benefits.va.gov/HOMELOANS/, as applicable. b. Appraisal If the appraisal had been ordered, but the appraiser had not yet visited the Not property before the date of the disaster, the appraiser will complete the Completed appraisal as usual, subject to any MPR repairs.	VA_Guidelines.txt
4ad15262-dc98-46e4-84f3-2e2457f2b375	No additional documentation Before the is needed. Disaster c. Appraisal If the property was appraised on or before the date of the declared disaster and Completed - not closed prior to that date, the following items must be submitted with the Loan Not VA guaranty request: Closed Before Disaster 1.	VA_Guidelines.txt
95f8bd0a-6f2f-4e07-a2bd-03f93d8864fc	Lender’s signed and dated certification that “This is to affirm that the property which is security for VA loan number _________________ has been inspected to ensure that it was either not damaged in the recently declared disaster or has been restored to its pre-disaster condition or better.” 2.	VA_Guidelines.txt
cc27ae9a-e519-4a7d-8d59-32100d1b99bc	Veteran’s signed and dated certification that “I have inspected the property located at ___________________ and find its condition now to be acceptable to me. I understand that I will not be charged for any disaster-related expenses and now wish to close the loan.” d.	VA_Guidelines.txt
30c2d1b8-f893-4fc2-b0cb-1ea0fcdbffbd	Decrease in If there is an indication that the property value may have declined due to the Value After disaster, despite the completion of repairs, the lender must have the Disaster VA-assigned appraiser perform a new appraisal.	VA_Guidelines.txt
d0516782-ad9d-4742-9d22-e46eefb7e1cc	The payment of the appraiser’s fee for this service will be a contractual matter between the buyer and seller. 10-40 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 28. Title Limitations Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
63985b16-457b-42b7-8a4f-1812c8d6cacc	Lender If the lender determines that a title limitation or condition discovered prior to Responsibilities loan closing may affect eligibility, the lender must contact the appraiser to determine if the property is still eligible to become the security for a VA-guaranteed loan.	VA_Guidelines.txt
16c56bb8-8998-4be9-bf0c-f2425acc563c	If the condition was discovered after the effective date of the appraisal, the appraiser may consider this a new assignment and an additional fee may be charged to the Veteran. b.	VA_Guidelines.txt
9cfab805-cb7d-4851-87ab-f231c2bdaab2	VA If VA becomes aware of limitations or conditions which were not considered Processing in the appraisal report or covered by 38 CFR 36	VA_Guidelines.txt
a34af3fe-78e3-44ce-8e28-c8668570b61d	.4354, the RLC of jurisdiction Procedures will: • contact the fee appraiser if additional information is needed to determine the effect of the limitation or condition on the value estimate, • consider the impact of the condition or limitation on the reasonable value of the property, • describe the condition or limitation in WebLGY notes, and • issue an amended NOV, if appropriate	VA_Guidelines.txt
9e4a9c5b-e5e1-4524-8cd6-4111eea020ed	. 10-41 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Appendix 1.	VA_Guidelines.txt
6c790925-3317-4519-b92d-896d5e8e3305	Steps for Requesting an Appraisal Step Action 1 Obtain a user ID and password for the Veterans Information Portal (VIP) (see Chapter 10, Topic 2 of this Handbook) 2 Ensure that the property is eligible for an appraisal.	VA_Guidelines.txt
cf9fdbc4-b894-4a27-99e4-caee4b1bf97e	Contact the RLC with any questions about property eligibility or if the property is not eligible, but is already the security for a VA loan 3 Request for Certificate of Eligibility (COE) 4 Log on to VIP and select WebLGY > Request Appraisal > Select Appraisal Type 5 Input all requested information to generate VA Form 26-1805-1, VA Request for Determination of Reasonable Value 6 To avoid a delay	VA_Guidelines.txt
671a2bfa-e82c-41f8-aab2-f585fe60d8f7	of Reasonable Value 6 To avoid a delay for the Veteran, provide a complete legal description and ensure that the Point of Contact’s (POC) information is correct and that the POC can provide access to the property for the appraiser without any additional calls 7 WebLGY will: - assign a case number (in liquidation cases, this will be the existing VA loan number for the property that must be	VA_Guidelines.txt
dcf25df4-e386-495d-8071-c194fd631dfa	VA loan number for the property that must be provided by the requester) - assign an appraiser (since VA is required by law to select the fee appraiser on a rotational basis from a panel maintained by VA) -generate a completed VA Form 26-1805-1, VA Request for Determination of Reasonable Value -e-mail the assignment to the VA-assigned fee appraiser Continued on next page 10-42 VA Pamphlet 26-7,	VA_Guidelines.txt
e667572d-a458-40ff-ae6f-22064c000f15	Continued on next page 10-42 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Appendix 1	VA_Guidelines.txt
b33d9196-de19-4cb2-a499-4bcf147aafda	.	VA_Guidelines.txt
02026034-5459-49ae-9618-19c107e1562f	Steps for Requesting an Appraisal, continued Step Action 8 If the Veteran is purchasing a home, the same day the assignment is made, the requester must upload a copy of the sales contract and any construction exhibits into WebLGY. VA highly recommends the use of reduced-size construction drawings to save copying, mailing, and storage costs for all parties involved.	VA_Guidelines.txt
16888072-f14e-4e26-8511-776906836498	Building plans, elevations and details, traditionally drawn at ¼ inch scale and larger, can be photographically reduced or computer-drawn to be clearly readable on 8½ by 14-inch pages. Other exhibits normally provided in an 8½ by 11-inch format (such as specifications, certifications, etc.) must not be further reduced.	VA_Guidelines.txt
625d6cad-8a93-4678-8fd6-f9792f068800	VA does not accept 11 by 17-inch pages as this size is not compatible with scanning equipment generally available to program participants. 9 For all appraisal types, if the legal description is lengthy and does not fit in the legal description block on the appraisal request, a copy of the complete legal description must be uploaded into WebLGY the same day the assignment is made	VA_Guidelines.txt
b04f3eab-bcea-457e-9538-af26d0609958	. 10 In most cases, the appraisal will be assigned instantly.	VA_Guidelines.txt
5964f6f4-c896-4bdd-b38d-cd94a2a4b4fb	If an appraiser is not assigned by WebLGY, please notify the RLC of jurisdiction. Requesters must not re-enter the information as a duplicate appraisal request will be generated.	VA_Guidelines.txt
f04364df-302c-4b5d-a0b7-f31221b662ae	RLC Contact http://www.benefits.va.gov/HOMELOANS/contact_cv.asp or Information http://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp 10-43 Chapter 11 Appraisal Report Overview In this This Chapter contains the following topics.	VA_Guidelines.txt
6fd3e084-0a49-48bf-8c66-d5c88fad8201	Chapter Topic Topic Name See Page 1 Appraisal Reports 11-3 2 Market Value 11-4 3 Appraisal Report Contents 11-5 4 Gross Living Area 11-8 5 Room Additions and Car Storage Conversions 11-9 6 Accessory Dwelling Unit 11-10 7 Nuisances 11-11 8 Remaining Economic Life 11-12 9 Effective Age 11-13 10 Highest and Best Use 11-14 11 Farm Residences 11-15 12 Condominiums 11-16 13 Uniform Appraisal Dataset	VA_Guidelines.txt
b4b4c868-2f4a-44f8-9645-2f36cd104fd4	Condominiums 11-16 13 Uniform Appraisal Dataset 11-19 14 Sales Comparison Approach 11-20 15 Cost Approach 11-23 16 Income Approach 11-24 17 Final Reconciliation 11-25 18 Appraisal Conditions 11-26 Continued on next page VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report Overview, continued a	VA_Guidelines.txt
606a68e4-1927-485a-827e-9fd06a41f69f	.	VA_Guidelines.txt
ce8d3568-25be-4fcc-9c42-d9a4d6266ff4	In this Chapter, Topic Topic Name See continued Page 19 Appraiser Training a New Appraiser 11-27 20 Liquidation Appraisals 11-28 21 Partial Release Appraisals 11-31 22 Vacant Land Appraisals 11-33 11-2 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 1. Appraisal Reports Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
d8349273-518d-4707-a447-b10219a3db84	USPAP and The appraiser assigned by VA must prepare the appraisal report in accordance VA with Uniform Standards of Professional Appraisal Practice (USPAP), the Requirements specific VA requirements outlined in this handbook, and in circulars periodically issued when program changes arise. b.	VA_Guidelines.txt
66ad79f8-bd94-4d3c-9199-c6a7bd9111cc	Appraisers Appraisers who have been appointed to VA’s fee appraiser panel have been Trained by VA trained on VA appraisal requirements. Lenders may rely on VA fee panel appraisers to have performed the appraisal in accordance with VA guidelines without the need for additional statements or certifications. c.	VA_Guidelines.txt
ac8c27a4-9c9f-4a16-bd1e-7bff5cc0fe8a	SAR Lenders’ Staff Appraisal Reviewers (SARs) who are reviewing appraisal Responsibilities reports must be familiar with residential appraisal principles and VA’s specific requirements for appraisal reports. 11-3 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 2. Market Value Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
671cfc2e-798e-48c6-b771-d02681351a74	Market The appraiser must estimate the market value, as "the most probable price that Value a property should bring in a competitive and open market under all conditions Definition requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.” VA considers reasonable value and market value to be synonymous.	VA_Guidelines.txt
87e1aef8-9510-492d-a634-44b039930a0d	VA’s definition of market value is consistent with that used by Fannie Mae, Freddie Mac, and major appraisal organizations. b. Protecting The quality of the appraisal is critical in protecting the interests of Veterans, the Interests of lenders, servicers, and VA.	VA_Guidelines.txt
8b55e348-504f-46b6-ae76-a54d96a4d252	This fact requires VA to be integrally involved in Veterans, its management and oversight of the appraisal process, from the initial Lenders, assignment of the appraiser through the issuance of the Notice of Value Servicers and (NOV), as well as oversight performed on closed loans. VA c.	VA_Guidelines.txt
d8440234-a613-4967-be6a-1fc8114752fe	VA c. Oversight Any appraisal report is unacceptable if the analysis is not based upon recognized appraisal practices and was intended to "accommodate" or "meet" the sales price. 11-4 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 3. Appraisal Report Contents, continued c. Appraisal 4.	VA_Guidelines.txt
cd9ca160-672b-4a81-9cc0-8d031212d3c1	Building • Gross living area calculations Report Sketch • Exterior dimensions of dwelling, basement, and any Contents, other improvements contributing value continued • Basement may be shown in relation to the floor plan of the house instead of separately • Floor plan layout (interior room dimensions and partitioning are not required) • If interior access is not provided on a liquidation	VA_Guidelines.txt
e0b1231c-f6c2-47b7-9b9b-cb37b63fbc84	interior access is not provided on a liquidation appraisal, a sketch is not required 5	VA_Guidelines.txt
c1e89f29-b4ae-4367-8c87-cf4a5fa3c775	. • Clear and labeled Photographs • Front and rear taken at opposite angles to show all sides of the dwelling if possible • Improvements with contributory value • Minimum Property Requirement (MPR) repair items • Street scene • Any views affecting value • Kitchen • Main living area • Bathrooms • Any recent updates, remodeling or renovation • Front view of each comparable sale (real estate	VA_Guidelines.txt
0b907cf9-88df-4cca-ac13-75eaa95a3e3a	• Front view of each comparable sale (real estate marketing photographs are acceptable with an explanation, for example, to exhibit condition at the time of sale, or if a comparable sale is in a gated community that was not accessible to the appraiser) • For condominiums, if the subject and sales are in the same building or identical buildings, the appraiser may comment instead of providing	VA_Guidelines.txt
bdf8becc-48fe-43f8-845b-fbc0c789d83f	the appraiser may comment instead of providing photographs of the sales • Interior photographs are not required on liquidation appraisals when access to the interior of the property is not available 6	VA_Guidelines.txt
8316c92b-403d-4799-b7e3-9947205b5e92	.	VA_Guidelines.txt
ac4bd862-28d9-49cd-90be-88166a9469df	Repair list • Itemized list of any observed MPR repairs (see Chapter 12 of this handbook) or customer preference items to be installed on new construction appraisals • May be included directly on the appraisal form 7.	VA_Guidelines.txt
0875b06c-24a8-44fc-9ff9-0621ad290672	Uniform • UAD Property Condition and Quality Rating Appraisal Definitions Dataset • UAD Property Description Abbreviations (see Topic (UAD) 13 of this chapter) Continued on next page 11-6 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 3. Appraisal Report Contents, continued c.	VA_Guidelines.txt
e726dbc0-e039-44c7-8c1c-382e050626c0	Appraisal 8	VA_Guidelines.txt
46043440-9170-4486-b044-30362d6717dc	. • Required by state law Report Appraiser’s • Related to continuing education or membership in Contents, certifications professional appraisal organizations continued • Additional certifications may be made on a separate form or page, provided they do not conflict with the language on the Statement of Assumptions and Limiting Conditions, any preprinted language on the appraisal form, or VA	VA_Guidelines.txt
2ab784f9-1891-4818-9ea5-118c2c321a9f	preprinted language on the appraisal form, or VA appraisal requirements 9	VA_Guidelines.txt
2e784d6e-0a28-4dcc-8bf3-bd9be3c2590e	. • Required on liquidation appraisals only (see Topic 20 Liquidation of this chapter) appraisal addendum 11-7 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 4.	VA_Guidelines.txt
c16d93c7-0b2f-4309-b99f-bd6c4d29fa3b	Gross Living Area Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Definition Gross living area (GLA) refers to the square footage of the area that is finished, habitable, contiguous, above-grade, residential space calculated by measuring the outside walls of the structure. b.	VA_Guidelines.txt
e7d91858-bd41-446d-9ebe-57350673c805	Non- The functional utility and contributory value of any non-contiguous areas Contiguous should be considered by the appraiser and listed separately from the GLA on Areas the market data grid. c. Basements Basements, whether or not finished, must not be included in the GLA. d. Attics Finished attics may be included in the GLA. e.	VA_Guidelines.txt
3543251f-e0a1-4f11-acdb-ef9f1a09df43	Below-Grade If any part of a finished level is below grade, the appraiser must determine Areas whether it should be considered GLA or valued separately. If the appraiser determines that a partially below-grade habitable space is similar to the GLA in design, quality of construction, and appeal, has full utility and is accepted in the market, the appraiser may include the area in the GLA.	VA_Guidelines.txt
f1c02fb7-b8f4-49aa-8517-00155f013391	If the partially below-grade space is inferior to the rest of the property and not accepted in the market, the appraiser may determine that the area is not part of the GLA. In cases such as these, the contributory value of partially below- grade space should be considered separately on the market data grid. 11-8 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 5.	VA_Guidelines.txt
8f6e4e50-cd36-4da2-b1f4-6fa63cb8e6c9	Room Additions and Car Storage Conversions Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
424c82b4-8bc2-4798-b936-4a9a68bfc3eb	GLA Room additions and enclosures of garages and carports into the living area Considerations should be included in the GLA if the added space is: • accessible from the interior of the main dwelling in a functional manner, • has a permanent and sufficient heat source, and • is similar in design, quality of construction and appeal to the main dwelling. b.	VA_Guidelines.txt
2d83d360-6035-45ab-81dd-370d0e9ea177	Non-GLA Added space that does not meet the criteria listed above must be valued Areas Valued separately from the GLA on the market data grid. The appraiser must Separately consider the effect on marketability of an inferior addition or conversion when arriving at the line item adjustment for the added space.	VA_Guidelines.txt
6946df4d-aba5-4bc3-b52d-a10db55890e1	When selecting and analyzing comparable sales, the appraiser should consider the differences in quality and utility of room additions and converted spaces when compared with originally constructed space. 11-9 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 5. Room Additions and Car Storage Conversions Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
5716c28e-53e0-4c77-bf86-c085926eab3f	GLA Room additions and enclosures of garages and carports into the living area Considerations should be included in the GLA if the added space is: • accessible from the interior of the main dwelling in a functional manner, • has a permanent and sufficient heat source, and • is similar in design, quality of construction and appeal to the main dwelling. b.	VA_Guidelines.txt
5160743f-5a57-4149-b002-308f36c7b381	Non-GLA Added space that does not meet the criteria listed above must be valued Areas Valued separately from the GLA on the market data grid. The appraiser must Separately consider the effect on marketability of an inferior addition or conversion when arriving at the line item adjustment for the added space.	VA_Guidelines.txt
47a61bc4-5187-475c-b170-26ece46f26ba	When selecting and analyzing comparable sales, the appraiser should consider the differences in quality and utility of room additions and converted spaces when compared with originally constructed space. 11-9 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 6. Accessory Dwelling Unit Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
f76b1c5c-d89a-4a16-8baf-a166fafb55bf	Single Real An Accessory Dwelling Unit (ADU) is a living unit including kitchen, Estate Entity sleeping, and bathroom facilities added to or created within a single-family dwelling, or detached on the same site. A manufactured home on the site could be an ADU. The dwelling and the ADU together constitute a single real estate entity. b.	VA_Guidelines.txt
fabd02a4-8a54-47c2-a8e0-4e228a0658ad	Highest and As part of the highest and best use analysis, the appraiser must determine if Best Use the property is a single-family dwelling with an ADU, or a two-family dwelling. The highest and best use must be a legal use (see Topic 10). A two-family dwelling must be appraised on the Fannie Mae Form 1025, Small Residential Income Property Appraisal Report. c.	VA_Guidelines.txt
1d9ef83a-f508-44bd-8da1-3833d97ad5c5	ADU Valued An ADU is usually subordinate in size, location, and appearance to the Separately primary dwelling unit and may or may not have separately metered utilities and separate means of ingress and egress. The appraiser must not include the living area of the ADU in the calculation of the GLA of the primary dwelling. The ADU must be valued separately as a line item on the market data grid. d.	VA_Guidelines.txt
c84019ee-1e3d-4261-bc97-c146a764c39d	Notify the The appraiser must notify the lender if a property has more than one ADU. Lender if More than One Unit e.	VA_Guidelines.txt
605367ff-d653-4de4-ae2a-dc4cf0f0e0ba	Lender if More than One Unit e. Detached A manufactured home, shed, or other detached building on the property which Buildings does not have kitchen, sleeping, and bathroom facilities or cannot be legally used as a dwelling, may be valued as storage space if it does not present any health or safety issues. 11-10 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 7.	VA_Guidelines.txt
9906e1b1-86d9-44b1-af2e-e4a3ec7a60b3	Nuisances Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Effect on While nuisances do not make a property ineligible or require repair, the Value appraiser must describe any nuisances and consider any effect on value. b. Sales with If available, comparable sales influenced by the same nuisance, should be Same Influence used by the appraiser. c.	VA_Guidelines.txt
f7069701-6088-4e5a-9c42-8cb5325414d9	Examples Examples of nuisances include heavy traffic, noise from a nearby highway, or odors from a factory in the vicinity. 11-11 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 7. Nuisances Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
d50bf5c8-dc89-4d0c-b5d4-8034cabea90d	Effect on While nuisances do not make a property ineligible or require repair, the Value appraiser must describe any nuisances and consider any effect on value. b. Sales with If available, comparable sales influenced by the same nuisance, should be Same Influence used by the appraiser. c.	VA_Guidelines.txt
6927a50a-f3cf-4569-8801-1a94d7495c9f	Examples Examples of nuisances include heavy traffic, noise from a nearby highway, or odors from a factory in the vicinity. 11-11 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 8. Remaining Economic Life Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
53cf01e3-1f04-4559-b4a1-22a21f119ff9	Factors in Remaining economic life is the estimated period of time until the Estimating improvements are expected to no longer serve their intended purpose as a Remaining home.	VA_Guidelines.txt
047b4ffa-5570-47bc-b8ed-4d29ed8d4849	In estimating the remaining economic life, the appraiser must consider: Economic Life • the relationship between the property and the economic stability of the block, neighborhood, and community, • comparisons with homes in the same or similar areas, • the need for a home of the particular type being appraised, • the architectural design, style and functional utility of the property, • the	VA_Guidelines.txt
c1207ef9-74f7-4aa2-b5c8-6a44a4f54c9f	and functional utility of the property, • the condition and durability of the property, • maintenance levels of other properties in the area, and • in areas where municipalities have established code enforcement areas, their expected results in improving the neighborhood for residential use	VA_Guidelines.txt
dfdf9edc-1ea5-478d-a264-87a4732ae1e4	. b.	VA_Guidelines.txt
03956a16-6619-427e-98bf-3933ad593107	Comment if The appraiser must estimate the remaining economic life as a single number Under 30 Years and include specific comments if the estimated remaining economic life is less than 30 years. c. Reporting The estimated remaining economic life must be provided in the cost approach section of the appraisal report.	VA_Guidelines.txt
dc5241a9-23ca-4a5f-abbb-7f040cac5d38	For condominium units, the estimated remaining economic life must be provided in the “Reconciliation” section of the appraisal report. 11-12 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 9. Effective Age Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
79e8c584-8322-479a-a08e-ab090f34d1a0	Estimating While the actual age is the number of years since the home was constructed, Effective Age the effective age reflects the condition and functional utility of the property. For example, remodeling will likely decrease the effective age of a home while a lack of maintenance can increase the effective age, possibly to a number greater than the actual age. b.	VA_Guidelines.txt
b84e3860-559a-4106-a8ff-df6fdbc30dad	Comment if The appraiser must state the effective age as a single number and include Significant comments if the effective age differs significantly from the actual age. Change From Actual Age c. Completed Since recommended repairs are included in value on origination appraisals, Repairs the effective age should reflect the condition of the property as repaired.	VA_Guidelines.txt
6b0cb948-c638-484e-a21e-d9b88d46b102	Considered 11-13 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 10. Highest and Best Use Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Definition The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value. b.	VA_Guidelines.txt
3ae96513-a04e-4e81-b3bc-1c2a424bfab4	Appraisal to While the appraiser must determine the highest and best use, the appraiser Meet VA must also complete the appraisal in accordance with VA guidelines.	VA_Guidelines.txt
e76ce1d8-1cc1-410d-88fc-cbafda39f38a	For Guidelines example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use. 11-14 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11. Farm Residences Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
56e74817-d581-4f82-b2e8-f63454915a76	Farm Although VA does not make farm or other business loans, Veterans may use Residence is an their VA home loan benefit to purchase a property on which there is a farm Eligible residence. Property b. No Limit on VA does not set a limit on the number of acres which the property may have.	VA_Guidelines.txt
191841df-0bd3-4804-ae03-dd41e0c1e152	Number of The appraisal of properties with acreage should not present difficulties if Acres similar properties in the area were recently sold primarily for residential use. c.	VA_Guidelines.txt
c4ed8de9-d393-41b4-8b48-acc52aeaa67d	Residential Improvements not typically considered residential, for example, barns, Purposes corrals, or stables, must be valued by the appraiser as they contribute to the Considered in market value of the property for residential purposes only.	VA_Guidelines.txt
1c997db3-4527-4138-a68f-3d3c8ebcc254	The appraiser must Valuation not include in value any livestock, crops, or farm equipment. 11-15 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.	VA_Guidelines.txt
2dc3320a-7630-44d5-ab78-1347b2196639	All condominium units, including site condominiums and manufactured home Condominium condominiums, must be located in a condominium development that has been Development accepted by VA prior to loan guaranty. SARs receiving an appraisal for a Accepted by condominium unit in a development that has not been at least conditionally VA accepted by VA may not issue the NOV. b.	VA_Guidelines.txt
dc111938-7c1a-4f61-90ca-59f015374a34	Avoid Ensuring that the condominium is accepted by VA before ordering the Unnecessary appraisal is recommended to avoid an unnecessary appraisal fee in the event Appraisal Fee that the condominium is not accepted by VA. c.	VA_Guidelines.txt
019b51b6-a514-48ef-8498-eb7a0ef5c721	Ineligible Condo-hotel properties where units are placed in a rental pool and “air” Property Types condominiums that do not have a homeowners association are not eligible for appraisal as these condominiums do not meet VA guidelines. If a question arises as to whether or not a condominium would be accepted by VA, VA acceptance should be requested (see subsection g of this Topic). d.	VA_Guidelines.txt
06864240-fa31-45bb-8a9b-035d5f824f23	HUD/FHA VA no longer accepts HUD/FHA condominium approvals as the Review Process condominium approval requirements differ from VA’s requirements. e. Spot VA does not perform “spot” approvals of individual condominium units Approvals within a condominium development. f.	VA_Guidelines.txt
7edb13ed-8c1f-449f-a4c5-d2507fd3696d	A list of VA-accepted condominium developments, with any conditions Condominium needed for approval, and condominium ID numbers, may be found at List Available https://vip.vba.va.gov/portal/VBAH/Home under “Featured Items” in “Condo Online Reports”. Continued on next page 11-16 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums, continued g.	VA_Guidelines.txt
da6a7dc9-abba-47a1-bd75-0b4beffe1424	Documents Lenders seeking VA acceptance of a condominium which has not already Needed for been reviewed by VA must establish a record for the condominium in Review WebLGY and upload the following documents in PDF format in this stacking order: • Declaration • Bylaws • Amendments • Plat Map • Rules and Regulations • Meeting Minutes • Budget • Special Assessment Letter • Litigation Letter • Presale	VA_Guidelines.txt
9631f63f-1c05-4c8f-afbe-8d9d7dc454d4	Assessment Letter • Litigation Letter • Presale Letter • Any additional documents h	VA_Guidelines.txt
7774d3e1-881c-4327-83fa-ad626a0e1b7c	.	VA_Guidelines.txt
84785eec-4398-4e8a-b1c5-5e1f3f1f5576	Legal Review When the required documents are uploaded, the RLC will request a review by Results VA’s legal counsel. The RLC will notify the requester of the results of the review and update the status of the condominium in WebLGY. Continued on next page 11-17 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums, continued i.	VA_Guidelines.txt
d555e30d-cafc-4227-be28-1507ce6af506	Condominiums, continued i. Appraisal In most cases, the appraiser will prepare the appraisal on Fannie Mae Form Requirements 1073, Individual Condominium Unit Appraisal Report.	VA_Guidelines.txt
9e60e1d5-756b-4ce9-93d1-b0271624ff1e	Appraisals of manufactured home condominium units must be prepared on Fannie Mae Form 1004C, Manufactured Home Appraisal Report, with the details about the condominium development usually provided in the Project Information Section of the condominium appraisal form included within the appraisal report.	VA_Guidelines.txt
19406897-5d0a-47a0-adb6-3ab09389c895	Liquidation appraisals of condominium units must be prepared on Fannie Mae Form 1075, Exterior-Only Inspection Individual Condominium Unit Appraisal Report, if interior access was not provided.	VA_Guidelines.txt

e276a2a5-4200-4e5c-95a3-06c86301a0f7

Appraisal Fee Collection Issues Change Date March 11, 2019 • This chapter has been revised in its entirety. a. When an appraisal is ordered, the requester must certify in WebLGY that the Certification appraisal fee has been collected and is being held to be paid to the appraiser. Fee to be Paid b.

VA_Guidelines.txt

f5508ef3-2108-46b4-bbb7-a733eb0057fd

Fee to be Paid b. Timely VA expects requesters to pay the appraiser within 30 to 45 days after the Payment of NOV is issued or it is determined by VA that an NOV will not be issued. the Fee c. RLC Appraisers may notify the RLC of jurisdiction about ongoing, documented Assistance issues collecting fees. The RLC may contact the requester to resolve the Collecting issue.

VA_Guidelines.txt

33628fb8-957a-4bd6-a538-2ab807b25bbb

In the event that the requester fails to pay the appraisal fee, the RLC Overdue Fees may require advance payment from the requester on future appraisals. d. VA Appraisers may not require advance payment from requesters or charge late Authorization fees unless approved in writing by VA. of Advance Fees 10-38 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 26.

VA_Guidelines.txt

94009a28-85db-4d24-8fc4-f148c491c744

Request from the Veteran to Change Lenders Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lender Lenders are expected to cooperate when a Veteran decides to change lenders. Responsibilities The lender who ordered the appraisal must transfer the case to the new lender when requested by the Veteran in writing (including email).

VA_Guidelines.txt

d4751246-792f-4fcd-b539-ce5aa4d72604

An appraisal report and case number may be transferred to another LAPP lender in WebLGY by a SAR of the original lender. The new lender should provide to the Veteran, their email address, phone number, and VA Lender ID number to be included in the Veteran’s letter to the original lender. b. New An NOV issued by a SAR is not transferable to another lender.

VA_Guidelines.txt

3e04e804-4d54-4fba-874f-9d73a83a03ce

The new Lender Must lender’s SAR must review the appraisal and issue a new NOV to the Veteran. Issue the NOV c. Lender Not If the new lender does not participate in LAPP, the Veteran’s request to Approved for change lenders must be submitted to the RLC of jurisdiction. The RLC will LAPP issue the NOV. 10-39 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 27.

VA_Guidelines.txt

90737e9b-b6fc-42db-bf67-41dd1325593f

Natural Disaster during the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lenders are required to check the FEMA website at www.fema.gov/disasters Declarations for the specific lists of counties and disaster declaration dates.

VA_Guidelines.txt

986287d2-806f-4bf3-a5ba-26e80a7740aa

Disaster Listed Online information is also provided on the VA Home Loan website at https://www.benefits.va.gov/HOMELOANS/, as applicable. b. Appraisal If the appraisal had been ordered, but the appraiser had not yet visited the Not property before the date of the disaster, the appraiser will complete the Completed appraisal as usual, subject to any MPR repairs.

VA_Guidelines.txt

4ad15262-dc98-46e4-84f3-2e2457f2b375

No additional documentation Before the is needed. Disaster c. Appraisal If the property was appraised on or before the date of the declared disaster and Completed - not closed prior to that date, the following items must be submitted with the Loan Not VA guaranty request: Closed Before Disaster 1.

VA_Guidelines.txt

95f8bd0a-6f2f-4e07-a2bd-03f93d8864fc

Lender’s signed and dated certification that “This is to affirm that the property which is security for VA loan number _________________ has been inspected to ensure that it was either not damaged in the recently declared disaster or has been restored to its pre-disaster condition or better.” 2.

VA_Guidelines.txt

cc27ae9a-e519-4a7d-8d59-32100d1b99bc

Veteran’s signed and dated certification that “I have inspected the property located at ___________________ and find its condition now to be acceptable to me. I understand that I will not be charged for any disaster-related expenses and now wish to close the loan.” d.

VA_Guidelines.txt

30c2d1b8-f893-4fc2-b0cb-1ea0fcdbffbd

Decrease in If there is an indication that the property value may have declined due to the Value After disaster, despite the completion of repairs, the lender must have the Disaster VA-assigned appraiser perform a new appraisal.

VA_Guidelines.txt

d0516782-ad9d-4742-9d22-e46eefb7e1cc

The payment of the appraiser’s fee for this service will be a contractual matter between the buyer and seller. 10-40 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 28. Title Limitations Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

63985b16-457b-42b7-8a4f-1812c8d6cacc

Lender If the lender determines that a title limitation or condition discovered prior to Responsibilities loan closing may affect eligibility, the lender must contact the appraiser to determine if the property is still eligible to become the security for a VA-guaranteed loan.

VA_Guidelines.txt

16c56bb8-8998-4be9-bf0c-f2425acc563c

If the condition was discovered after the effective date of the appraisal, the appraiser may consider this a new assignment and an additional fee may be charged to the Veteran. b.

VA_Guidelines.txt

9cfab805-cb7d-4851-87ab-f231c2bdaab2

VA If VA becomes aware of limitations or conditions which were not considered Processing in the appraisal report or covered by 38 CFR 36

VA_Guidelines.txt

a34af3fe-78e3-44ce-8e28-c8668570b61d

.4354, the RLC of jurisdiction Procedures will: • contact the fee appraiser if additional information is needed to determine the effect of the limitation or condition on the value estimate, • consider the impact of the condition or limitation on the reasonable value of the property, • describe the condition or limitation in WebLGY notes, and • issue an amended NOV, if appropriate

VA_Guidelines.txt

9e4a9c5b-e5e1-4524-8cd6-4111eea020ed

. 10-41 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Appendix 1.

VA_Guidelines.txt

6c790925-3317-4519-b92d-896d5e8e3305

Steps for Requesting an Appraisal Step Action 1 Obtain a user ID and password for the Veterans Information Portal (VIP) (see Chapter 10, Topic 2 of this Handbook) 2 Ensure that the property is eligible for an appraisal.

VA_Guidelines.txt

cf9fdbc4-b894-4a27-99e4-caee4b1bf97e

Contact the RLC with any questions about property eligibility or if the property is not eligible, but is already the security for a VA loan 3 Request for Certificate of Eligibility (COE) 4 Log on to VIP and select WebLGY > Request Appraisal > Select Appraisal Type 5 Input all requested information to generate VA Form 26-1805-1, VA Request for Determination of Reasonable Value 6 To avoid a delay

VA_Guidelines.txt

671a2bfa-e82c-41f8-aab2-f585fe60d8f7

of Reasonable Value 6 To avoid a delay for the Veteran, provide a complete legal description and ensure that the Point of Contact’s (POC) information is correct and that the POC can provide access to the property for the appraiser without any additional calls 7 WebLGY will: - assign a case number (in liquidation cases, this will be the existing VA loan number for the property that must be

VA_Guidelines.txt

dcf25df4-e386-495d-8071-c194fd631dfa

VA loan number for the property that must be provided by the requester) - assign an appraiser (since VA is required by law to select the fee appraiser on a rotational basis from a panel maintained by VA) -generate a completed VA Form 26-1805-1, VA Request for Determination of Reasonable Value -e-mail the assignment to the VA-assigned fee appraiser Continued on next page 10-42 VA Pamphlet 26-7,

VA_Guidelines.txt

e667572d-a458-40ff-ae6f-22064c000f15

Continued on next page 10-42 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Appendix 1

VA_Guidelines.txt

b33d9196-de19-4cb2-a499-4bcf147aafda

.

VA_Guidelines.txt

02026034-5459-49ae-9618-19c107e1562f

Steps for Requesting an Appraisal, continued Step Action 8 If the Veteran is purchasing a home, the same day the assignment is made, the requester must upload a copy of the sales contract and any construction exhibits into WebLGY. VA highly recommends the use of reduced-size construction drawings to save copying, mailing, and storage costs for all parties involved.

VA_Guidelines.txt

16888072-f14e-4e26-8511-776906836498

Building plans, elevations and details, traditionally drawn at ¼ inch scale and larger, can be photographically reduced or computer-drawn to be clearly readable on 8½ by 14-inch pages. Other exhibits normally provided in an 8½ by 11-inch format (such as specifications, certifications, etc.) must not be further reduced.

VA_Guidelines.txt

625d6cad-8a93-4678-8fd6-f9792f068800

VA does not accept 11 by 17-inch pages as this size is not compatible with scanning equipment generally available to program participants. 9 For all appraisal types, if the legal description is lengthy and does not fit in the legal description block on the appraisal request, a copy of the complete legal description must be uploaded into WebLGY the same day the assignment is made

VA_Guidelines.txt

b04f3eab-bcea-457e-9538-af26d0609958

. 10 In most cases, the appraisal will be assigned instantly.

VA_Guidelines.txt

5964f6f4-c896-4bdd-b38d-cd94a2a4b4fb

If an appraiser is not assigned by WebLGY, please notify the RLC of jurisdiction. Requesters must not re-enter the information as a duplicate appraisal request will be generated.

VA_Guidelines.txt

f04364df-302c-4b5d-a0b7-f31221b662ae

RLC Contact http://www.benefits.va.gov/HOMELOANS/contact_cv.asp or Information http://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp 10-43 Chapter 11 Appraisal Report Overview In this This Chapter contains the following topics.

VA_Guidelines.txt

6fd3e084-0a49-48bf-8c66-d5c88fad8201

Chapter Topic Topic Name See Page 1 Appraisal Reports 11-3 2 Market Value 11-4 3 Appraisal Report Contents 11-5 4 Gross Living Area 11-8 5 Room Additions and Car Storage Conversions 11-9 6 Accessory Dwelling Unit 11-10 7 Nuisances 11-11 8 Remaining Economic Life 11-12 9 Effective Age 11-13 10 Highest and Best Use 11-14 11 Farm Residences 11-15 12 Condominiums 11-16 13 Uniform Appraisal Dataset

VA_Guidelines.txt

b4b4c868-2f4a-44f8-9645-2f36cd104fd4

Condominiums 11-16 13 Uniform Appraisal Dataset 11-19 14 Sales Comparison Approach 11-20 15 Cost Approach 11-23 16 Income Approach 11-24 17 Final Reconciliation 11-25 18 Appraisal Conditions 11-26 Continued on next page VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report Overview, continued a

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606a68e4-1927-485a-827e-9fd06a41f69f

.

VA_Guidelines.txt

ce8d3568-25be-4fcc-9c42-d9a4d6266ff4

In this Chapter, Topic Topic Name See continued Page 19 Appraiser Training a New Appraiser 11-27 20 Liquidation Appraisals 11-28 21 Partial Release Appraisals 11-31 22 Vacant Land Appraisals 11-33 11-2 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 1. Appraisal Reports Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

VA_Guidelines.txt

d8349273-518d-4707-a447-b10219a3db84

USPAP and The appraiser assigned by VA must prepare the appraisal report in accordance VA with Uniform Standards of Professional Appraisal Practice (USPAP), the Requirements specific VA requirements outlined in this handbook, and in circulars periodically issued when program changes arise. b.

VA_Guidelines.txt

66ad79f8-bd94-4d3c-9199-c6a7bd9111cc

Appraisers Appraisers who have been appointed to VA’s fee appraiser panel have been Trained by VA trained on VA appraisal requirements. Lenders may rely on VA fee panel appraisers to have performed the appraisal in accordance with VA guidelines without the need for additional statements or certifications. c.

VA_Guidelines.txt

ac8c27a4-9c9f-4a16-bd1e-7bff5cc0fe8a

SAR Lenders’ Staff Appraisal Reviewers (SARs) who are reviewing appraisal Responsibilities reports must be familiar with residential appraisal principles and VA’s specific requirements for appraisal reports. 11-3 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 2. Market Value Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

VA_Guidelines.txt

671cfc2e-798e-48c6-b771-d02681351a74

Market The appraiser must estimate the market value, as "the most probable price that Value a property should bring in a competitive and open market under all conditions Definition requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.” VA considers reasonable value and market value to be synonymous.

VA_Guidelines.txt

87e1aef8-9510-492d-a634-44b039930a0d

VA’s definition of market value is consistent with that used by Fannie Mae, Freddie Mac, and major appraisal organizations. b. Protecting The quality of the appraisal is critical in protecting the interests of Veterans, the Interests of lenders, servicers, and VA.

VA_Guidelines.txt

8b55e348-504f-46b6-ae76-a54d96a4d252

This fact requires VA to be integrally involved in Veterans, its management and oversight of the appraisal process, from the initial Lenders, assignment of the appraiser through the issuance of the Notice of Value Servicers and (NOV), as well as oversight performed on closed loans. VA c.

VA_Guidelines.txt

d8440234-a613-4967-be6a-1fc8114752fe

VA c. Oversight Any appraisal report is unacceptable if the analysis is not based upon recognized appraisal practices and was intended to "accommodate" or "meet" the sales price. 11-4 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 3. Appraisal Report Contents, continued c. Appraisal 4.

VA_Guidelines.txt

cd9ca160-672b-4a81-9cc0-8d031212d3c1

Building • Gross living area calculations Report Sketch • Exterior dimensions of dwelling, basement, and any Contents, other improvements contributing value continued • Basement may be shown in relation to the floor plan of the house instead of separately • Floor plan layout (interior room dimensions and partitioning are not required) • If interior access is not provided on a liquidation

VA_Guidelines.txt

e0b1231c-f6c2-47b7-9b9b-cb37b63fbc84

interior access is not provided on a liquidation appraisal, a sketch is not required 5

VA_Guidelines.txt

c1e89f29-b4ae-4367-8c87-cf4a5fa3c775

. • Clear and labeled Photographs • Front and rear taken at opposite angles to show all sides of the dwelling if possible • Improvements with contributory value • Minimum Property Requirement (MPR) repair items • Street scene • Any views affecting value • Kitchen • Main living area • Bathrooms • Any recent updates, remodeling or renovation • Front view of each comparable sale (real estate

VA_Guidelines.txt

0b907cf9-88df-4cca-ac13-75eaa95a3e3a

• Front view of each comparable sale (real estate marketing photographs are acceptable with an explanation, for example, to exhibit condition at the time of sale, or if a comparable sale is in a gated community that was not accessible to the appraiser) • For condominiums, if the subject and sales are in the same building or identical buildings, the appraiser may comment instead of providing

VA_Guidelines.txt

bdf8becc-48fe-43f8-845b-fbc0c789d83f

the appraiser may comment instead of providing photographs of the sales • Interior photographs are not required on liquidation appraisals when access to the interior of the property is not available 6

VA_Guidelines.txt

8316c92b-403d-4799-b7e3-9947205b5e92

.

VA_Guidelines.txt

ac4bd862-28d9-49cd-90be-88166a9469df

Repair list • Itemized list of any observed MPR repairs (see Chapter 12 of this handbook) or customer preference items to be installed on new construction appraisals • May be included directly on the appraisal form 7.

VA_Guidelines.txt

0875b06c-24a8-44fc-9ff9-0621ad290672

Uniform • UAD Property Condition and Quality Rating Appraisal Definitions Dataset • UAD Property Description Abbreviations (see Topic (UAD) 13 of this chapter) Continued on next page 11-6 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 3. Appraisal Report Contents, continued c.

VA_Guidelines.txt

e726dbc0-e039-44c7-8c1c-382e050626c0

Appraisal 8

VA_Guidelines.txt

46043440-9170-4486-b044-30362d6717dc

. • Required by state law Report Appraiser’s • Related to continuing education or membership in Contents, certifications professional appraisal organizations continued • Additional certifications may be made on a separate form or page, provided they do not conflict with the language on the Statement of Assumptions and Limiting Conditions, any preprinted language on the appraisal form, or VA

VA_Guidelines.txt

2ab784f9-1891-4818-9ea5-118c2c321a9f

preprinted language on the appraisal form, or VA appraisal requirements 9

VA_Guidelines.txt

2e784d6e-0a28-4dcc-8bf3-bd9be3c2590e

. • Required on liquidation appraisals only (see Topic 20 Liquidation of this chapter) appraisal addendum 11-7 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 4.

VA_Guidelines.txt

c16d93c7-0b2f-4309-b99f-bd6c4d29fa3b

Gross Living Area Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Definition Gross living area (GLA) refers to the square footage of the area that is finished, habitable, contiguous, above-grade, residential space calculated by measuring the outside walls of the structure. b.

VA_Guidelines.txt

e7d91858-bd41-446d-9ebe-57350673c805

Non- The functional utility and contributory value of any non-contiguous areas Contiguous should be considered by the appraiser and listed separately from the GLA on Areas the market data grid. c. Basements Basements, whether or not finished, must not be included in the GLA. d. Attics Finished attics may be included in the GLA. e.

VA_Guidelines.txt

3543251f-e0a1-4f11-acdb-ef9f1a09df43

Below-Grade If any part of a finished level is below grade, the appraiser must determine Areas whether it should be considered GLA or valued separately. If the appraiser determines that a partially below-grade habitable space is similar to the GLA in design, quality of construction, and appeal, has full utility and is accepted in the market, the appraiser may include the area in the GLA.

VA_Guidelines.txt

f1c02fb7-b8f4-49aa-8517-00155f013391

If the partially below-grade space is inferior to the rest of the property and not accepted in the market, the appraiser may determine that the area is not part of the GLA. In cases such as these, the contributory value of partially below- grade space should be considered separately on the market data grid. 11-8 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 5.

VA_Guidelines.txt

8f6e4e50-cd36-4da2-b1f4-6fa63cb8e6c9

Room Additions and Car Storage Conversions Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

VA_Guidelines.txt

424c82b4-8bc2-4798-b936-4a9a68bfc3eb

GLA Room additions and enclosures of garages and carports into the living area Considerations should be included in the GLA if the added space is: • accessible from the interior of the main dwelling in a functional manner, • has a permanent and sufficient heat source, and • is similar in design, quality of construction and appeal to the main dwelling. b.

VA_Guidelines.txt

2d83d360-6035-45ab-81dd-370d0e9ea177

Non-GLA Added space that does not meet the criteria listed above must be valued Areas Valued separately from the GLA on the market data grid. The appraiser must Separately consider the effect on marketability of an inferior addition or conversion when arriving at the line item adjustment for the added space.

VA_Guidelines.txt

6946df4d-aba5-4bc3-b52d-a10db55890e1

When selecting and analyzing comparable sales, the appraiser should consider the differences in quality and utility of room additions and converted spaces when compared with originally constructed space. 11-9 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 5. Room Additions and Car Storage Conversions Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

VA_Guidelines.txt

5716c28e-53e0-4c77-bf86-c085926eab3f

GLA Room additions and enclosures of garages and carports into the living area Considerations should be included in the GLA if the added space is: • accessible from the interior of the main dwelling in a functional manner, • has a permanent and sufficient heat source, and • is similar in design, quality of construction and appeal to the main dwelling. b.

VA_Guidelines.txt

5160743f-5a57-4149-b002-308f36c7b381

Non-GLA Added space that does not meet the criteria listed above must be valued Areas Valued separately from the GLA on the market data grid. The appraiser must Separately consider the effect on marketability of an inferior addition or conversion when arriving at the line item adjustment for the added space.

VA_Guidelines.txt

47a61bc4-5187-475c-b170-26ece46f26ba

When selecting and analyzing comparable sales, the appraiser should consider the differences in quality and utility of room additions and converted spaces when compared with originally constructed space. 11-9 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 6. Accessory Dwelling Unit Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

VA_Guidelines.txt

f76b1c5c-d89a-4a16-8baf-a166fafb55bf

Single Real An Accessory Dwelling Unit (ADU) is a living unit including kitchen, Estate Entity sleeping, and bathroom facilities added to or created within a single-family dwelling, or detached on the same site. A manufactured home on the site could be an ADU. The dwelling and the ADU together constitute a single real estate entity. b.

VA_Guidelines.txt

fabd02a4-8a54-47c2-a8e0-4e228a0658ad

Highest and As part of the highest and best use analysis, the appraiser must determine if Best Use the property is a single-family dwelling with an ADU, or a two-family dwelling. The highest and best use must be a legal use (see Topic 10). A two-family dwelling must be appraised on the Fannie Mae Form 1025, Small Residential Income Property Appraisal Report. c.

VA_Guidelines.txt

1d9ef83a-f508-44bd-8da1-3833d97ad5c5

ADU Valued An ADU is usually subordinate in size, location, and appearance to the Separately primary dwelling unit and may or may not have separately metered utilities and separate means of ingress and egress. The appraiser must not include the living area of the ADU in the calculation of the GLA of the primary dwelling. The ADU must be valued separately as a line item on the market data grid. d.

VA_Guidelines.txt

c84019ee-1e3d-4261-bc97-c146a764c39d

Notify the The appraiser must notify the lender if a property has more than one ADU. Lender if More than One Unit e.

VA_Guidelines.txt

605367ff-d653-4de4-ae2a-dc4cf0f0e0ba

Lender if More than One Unit e. Detached A manufactured home, shed, or other detached building on the property which Buildings does not have kitchen, sleeping, and bathroom facilities or cannot be legally used as a dwelling, may be valued as storage space if it does not present any health or safety issues. 11-10 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 7.

VA_Guidelines.txt

9906e1b1-86d9-44b1-af2e-e4a3ec7a60b3

Nuisances Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Effect on While nuisances do not make a property ineligible or require repair, the Value appraiser must describe any nuisances and consider any effect on value. b. Sales with If available, comparable sales influenced by the same nuisance, should be Same Influence used by the appraiser. c.

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Examples Examples of nuisances include heavy traffic, noise from a nearby highway, or odors from a factory in the vicinity. 11-11 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 7. Nuisances Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

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Effect on While nuisances do not make a property ineligible or require repair, the Value appraiser must describe any nuisances and consider any effect on value. b. Sales with If available, comparable sales influenced by the same nuisance, should be Same Influence used by the appraiser. c.

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Examples Examples of nuisances include heavy traffic, noise from a nearby highway, or odors from a factory in the vicinity. 11-11 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 8. Remaining Economic Life Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

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Factors in Remaining economic life is the estimated period of time until the Estimating improvements are expected to no longer serve their intended purpose as a Remaining home.

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In estimating the remaining economic life, the appraiser must consider: Economic Life • the relationship between the property and the economic stability of the block, neighborhood, and community, • comparisons with homes in the same or similar areas, • the need for a home of the particular type being appraised, • the architectural design, style and functional utility of the property, • the

VA_Guidelines.txt

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and functional utility of the property, • the condition and durability of the property, • maintenance levels of other properties in the area, and • in areas where municipalities have established code enforcement areas, their expected results in improving the neighborhood for residential use

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. b.

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Comment if The appraiser must estimate the remaining economic life as a single number Under 30 Years and include specific comments if the estimated remaining economic life is less than 30 years. c. Reporting The estimated remaining economic life must be provided in the cost approach section of the appraisal report.

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For condominium units, the estimated remaining economic life must be provided in the “Reconciliation” section of the appraisal report. 11-12 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 9. Effective Age Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

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Estimating While the actual age is the number of years since the home was constructed, Effective Age the effective age reflects the condition and functional utility of the property. For example, remodeling will likely decrease the effective age of a home while a lack of maintenance can increase the effective age, possibly to a number greater than the actual age. b.

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Comment if The appraiser must state the effective age as a single number and include Significant comments if the effective age differs significantly from the actual age. Change From Actual Age c. Completed Since recommended repairs are included in value on origination appraisals, Repairs the effective age should reflect the condition of the property as repaired.

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Considered 11-13 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 10. Highest and Best Use Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Definition The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value. b.

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Appraisal to While the appraiser must determine the highest and best use, the appraiser Meet VA must also complete the appraisal in accordance with VA guidelines.

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For Guidelines example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use. 11-14 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11. Farm Residences Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

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Farm Although VA does not make farm or other business loans, Veterans may use Residence is an their VA home loan benefit to purchase a property on which there is a farm Eligible residence. Property b. No Limit on VA does not set a limit on the number of acres which the property may have.

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Number of The appraisal of properties with acreage should not present difficulties if Acres similar properties in the area were recently sold primarily for residential use. c.

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Residential Improvements not typically considered residential, for example, barns, Purposes corrals, or stables, must be valued by the appraiser as they contribute to the Considered in market value of the property for residential purposes only.

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The appraiser must Valuation not include in value any livestock, crops, or farm equipment. 11-15 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums Change Date February 22, 2019 • This Chapter has been revised in its entirety. a.

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All condominium units, including site condominiums and manufactured home Condominium condominiums, must be located in a condominium development that has been Development accepted by VA prior to loan guaranty. SARs receiving an appraisal for a Accepted by condominium unit in a development that has not been at least conditionally VA accepted by VA may not issue the NOV. b.

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Avoid Ensuring that the condominium is accepted by VA before ordering the Unnecessary appraisal is recommended to avoid an unnecessary appraisal fee in the event Appraisal Fee that the condominium is not accepted by VA. c.

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Ineligible Condo-hotel properties where units are placed in a rental pool and “air” Property Types condominiums that do not have a homeowners association are not eligible for appraisal as these condominiums do not meet VA guidelines. If a question arises as to whether or not a condominium would be accepted by VA, VA acceptance should be requested (see subsection g of this Topic). d.

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HUD/FHA VA no longer accepts HUD/FHA condominium approvals as the Review Process condominium approval requirements differ from VA’s requirements. e. Spot VA does not perform “spot” approvals of individual condominium units Approvals within a condominium development. f.

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A list of VA-accepted condominium developments, with any conditions Condominium needed for approval, and condominium ID numbers, may be found at List Available https://vip.vba.va.gov/portal/VBAH/Home under “Featured Items” in “Condo Online Reports”. Continued on next page 11-16 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums, continued g.

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Documents Lenders seeking VA acceptance of a condominium which has not already Needed for been reviewed by VA must establish a record for the condominium in Review WebLGY and upload the following documents in PDF format in this stacking order: • Declaration • Bylaws • Amendments • Plat Map • Rules and Regulations • Meeting Minutes • Budget • Special Assessment Letter • Litigation Letter • Presale

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Assessment Letter • Litigation Letter • Presale Letter • Any additional documents h

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.

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Legal Review When the required documents are uploaded, the RLC will request a review by Results VA’s legal counsel. The RLC will notify the requester of the results of the review and update the status of the condominium in WebLGY. Continued on next page 11-17 VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 12. Condominiums, continued i.

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Condominiums, continued i. Appraisal In most cases, the appraiser will prepare the appraisal on Fannie Mae Form Requirements 1073, Individual Condominium Unit Appraisal Report.

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Appraisals of manufactured home condominium units must be prepared on Fannie Mae Form 1004C, Manufactured Home Appraisal Report, with the details about the condominium development usually provided in the Project Information Section of the condominium appraisal form included within the appraisal report.

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Liquidation appraisals of condominium units must be prepared on Fannie Mae Form 1075, Exterior-Only Inspection Individual Condominium Unit Appraisal Report, if interior access was not provided.

VA_Guidelines.txt