Beginning July 1, 2009 USDA is requiring the updated Freddie Mac/ Fannie Mae appraisal in their packages. As with any change, there are some potential drawbacks.
USDA home loans are made in genearlly rural areas. The new Freddie/Fannie appraisal is designed specifically to identify for the underwriter any recent changes (read DECLINING changes) identified in a particular subdivision or small locality… well, in a mostly rural area, you don’t always have consistantly priced homes, so if you are asking about a small local geographic area, it’s very possible that the property values will look as if they are declining. That’s why it is important, now more than ever, to work with a HIGHLY skilled Appriaser who can competently and carefully give the FULL details regarding the area in the additional comments sections provided.
Here’s the news:
New Appraisal Requirements for Single Family Housing Guaranteed Loans
For new application packages submitted to the Agency on or after July 1, 2009, Rural Development will require the Fannie Mae/Freddie Mac form 1004MC “Market Conditions Addendum to the Appraisal Report” be included in the appraisal. Beginning July 1, 2009, Lenders should order appraisals to include the Fannie Mae/Freddie Mac form 1004MC. For loans already in process, the Agency will continue to accept appraisals without the Fannie Mae/Freddie Mac form 1004MC until July 31, 2009. The form is not required if an application package has already been submitted to the Agency, or if an appraisal has already been conducted that did not include the form. This applies to all guaranteed loan requests, including those manually underwritten or submitted through GUS. An Administrative Notice on this topic is forthcoming.
If you are considering purchasing a home, and using the USDA home loan mortgage program, please contact us! We specialize in these (and other) government loan programs! Steve and Eleanor Thorne, 919-649-5058. Connect With Us on Google Plus
There are MANY areas in Wake County that qualify for USDA financing, and ALL of Johnston County Qualifies for USDA mortgage loans! Click here to see maps of specific areas qualifying for USDA mortgages!