Learning center
Property Condition & Appraisal
Minimum property requirements (MPR) explained
Overview
Understanding property condition for each loan type. Sales contract might say As-Is, but that means nothing to an appraiser or lender. The condition of the property and any health & safety issues present will determine the steps necessary to satisfy and lender property requirements. And how the appraisal not only determines value but also the possible need for further inspections and/or repairs.
Who this is for: Buyers, Sellers, Agents
What you'll learn
- •An as-is clause in the listing or sales agreement means nothing to a lender
- •The appraisal and the sales agreement provisions typically dictate what inspections/clearances a lender will require
- •Government loans and minimum property requirements
- •What loan programs require well and septic clearances and when?
2 guides in this topic
Property Condition & AppraisalVA Existing Property Condition Screening Checklist
The presence of any of these conditions below are required to be corrected to meet a property's MPR (minimum property requirements). Most often it is a VA appraiser who will determine if a property does not meet MPRs.
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Property Condition & AppraisalFHA Minimum Property Standards and Inspection Requirements
When utilizing an FHA loan, lending rules require an appraisal conducted by an FHA-approved appraiser for the standard sales transaction. This appraisal serves two purposes: firstly, to determine the current value using appropriate comparables (comps) from the local vicinity, and secondly, to ensure that the property condition aligns with HUD's/FHA's minimum property standards.
Read the guide →Get a straight answer today
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