CRMP Property Requirements and Appraisal Standards Questions and Answers Flashcards

Which property types are eligible for a HECM loan?

Answer: Single-family homes, HUD-approved condos, and manufactured homes meeting FHA standards

Eligible HECM properties include single-family homes, FHA-approved condominiums, and manufactured homes that meet specific HUD requirements.

What is the minimum age of a manufactured home to be eligible for a HECM loan?

Answer: Must be built on or after June 15, 1976

Manufactured homes must be built on or after June 15, 1976, when the HUD Code for manufactured housing standards took effect.

Which appraisal form is required for a standard single-family HECM property appraisal?

Answer: Fannie Mae Form 1004 (URAR)

The Uniform Residential Appraisal Report (Fannie Mae Form 1004/URAR) is the standard appraisal form required for single-family HECM properties.

What action must be taken if a HECM appraisal reveals required property repairs?

Answer: Repairs must be completed before closing, or funds may be set aside for completion after closing

Required repairs may be completed before closing or a repair set-aside can be established to ensure completion within a specified timeframe after closing.

What is the maximum loan-to-value impact when a second appraisal is required for a HECM?

Answer: The lower of the two appraisals is used to determine the MCA

When HUD requires a second appraisal, the lower of the two appraised values is used as the basis for the Maximum Claim Amount.

Which property condition would automatically disqualify a home from HECM eligibility?

Answer: Structural deficiencies that pose a safety hazard and cannot be repaired

Structural deficiencies that pose safety or habitability hazards and cannot be repaired will disqualify a property from HECM eligibility.