CRMP CRMP Property Requirements and Appraisal Standards Questions and Answers 2

Question 1

What is the maximum number of units allowed in a property that is eligible for a HECM?

Accepted Answer

Up to 4 units, with borrower occupying one unit

Answer

1 unit only

Answer

Up to 2 units

Answer

Up to 4 units regardless of occupancy

Question 2

Can a HECM be placed on a property located on a Native American tribal trust land?

Accepted Answer

Yes, with a Section 184A loan guarantee under specific conditions

Answer

No, tribal trust land is never eligible

Answer

Only if the property is fee simple

Answer

Yes, without any additional requirements

Question 3

Which of the following is NOT an FHA Minimum Property Standard that must be met for HECM eligibility?

Accepted Answer

The property must have a garage

Answer

The property must have adequate heating

Answer

The property must have a working septic system or sewer connection

Answer

The property must have safe electrical systems

Question 4

What must occur before a condominium unit can serve as collateral for a HECM loan?

Accepted Answer

The condo project must be on the FHA-approved condominium list

Answer

The condo association must approve the loan

Answer

The borrower must own at least 51% of the condo complex

Answer

The condo must have been built after 1990

Question 5

Under HUD guidelines, who is responsible for selecting the HECM appraiser?

Accepted Answer

The lender orders the appraisal through an approved FHA roster appraiser

Answer

The borrower selects their preferred appraiser

Answer

The HUD field office assigns the appraiser

Answer

The real estate agent recommends the appraiser

Question 6

How long is an FHA appraisal valid for a HECM loan application?

Accepted Answer

120 days, with a possible 30-day extension

Answer

60 days

Answer

90 days

Answer

180 days