Roofs & Attics

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Chapter 1
Appraisal & Property Requirements
Page 1-24

Roofs

The covering must prevent moisture from entering and provide reasonable future utility, durability and economy of maintenance. The appraiser must visually examine the roof to determine whether deficiencies present a health and safety hazard or do not allow for reasonable future utility. (4905.1 REV-1, 2-12.)

Life Expectancy - The appraiser must exercise sound judgment when evaluating roof condition. The roof should have a remaining physical life of at least two years. If the roof has less than two years remaining life, then the appraiser must call for re-roofing or repair. The condition must clearly state whether the subject is to be repaired or re-roofed.

Snow Covered Roofs:

In areas where the snow is likely to lay for more than a few days:

1: The appraiser is required to make an extra thorough inspection of the attic and all visible roofing areas for signs of failing roofing materials.

2: If there is evidence of damage and/or leaks the appraiser is to condition appropriately for correction(s).

3: If there is no evidence of damage and/or water leaks. The borrower must be informed that the roof was snow covered at the time of the appraisal and that it is acceptable to the purchaser without any warranty or guarantees from HUD/FHA.

4: If the borrower has concerns, they can request the seller to shovel the roof for inspection by a qualified roofer. If damage occurs during shoveling, it is between the buyer and seller to resolve.

In areas where the snow is not likely to lay for more than a few days a clear roof inspection is to be obtained prior to closing.

1: The appraiser is required to make an extra thorough inspection of the attic and all visible roofing areas for signs of failing roofing materials and call for a clear roofing inspection.

2: If the Underwriter determines, due to unusual weather conditions, it is not possible to obtain the clear inspection prior to closing, then the purchaser and seller are to sign an acknowledgment that indicates:

i: The roof was covered with snow at the time of the appraisal inspection,

ii: The snow is likely to continue to cover the roof for several more days and that the roof cannot be inspected prior to loan closing

iii: HUD/FHA makes no guarantees or warranties as to the roof’s condition.

3: A clear roof inspection must then be obtained prior to submission for FHA Insurance or an escrow account equal to 1 ½ times the cost of a new roof is to be established in the event repairs or a new roof is found to be needed when the inspection takes place. (Certification is to be in the insuring package.)

Re-Roofing - FHA will accept a maximum of 3 layers of existing roofing. If more than 2 layers exist and repair is necessary, then all old roofing must be removed as part of the re-roofing. (4905.1 REV-1, 2-12)

Inspections - Certification as to the condition of the roof and the completion of work requirements should be made by a person determined to be qualified by the lender.

Valuation of Roof - Appraisers are expected to know the market value of the different roofing types in the area of the subject. For example in one market homes with wood shingles may reap a higher price than those with composition shingles, while in another they may be equal or the wood may even be less desirable. When evaluating the quality of the roof, items like multiple layering and composition over wood must be considered. Should the appraisal value be based on the conditions that the subject will have a new roof the appraiser needs to clearly indicate the type of roofing being valued. .

All flat roofs require an inspection as identified in item 4 above. This includes roofs on any structure on the property except open pole style patios that appear to be in good condition. If the subject is part of a large multifamily buildings, i.e. condominiums, no roof inspection is required. If the subject is in a small 4 unit building or is a townhouse type unit covered by a condo association with the subject property having its own roof, then a roof inspection is required. (This does not include PUDs as they are considered single family in their nature.)

Access - It is the homeowner/seller’s responsibility to provide clear access to these areas. FHA appraisers are required to observe the attic area and will likely need to have a ladder to gain attic access. When there is no safe access to the attic the appraiser is to mark the HUD-92564-VC appropriately to require access.

Do not require attic access openings for mobile homes and dwellings with little or no attic area (due to interior roof slope).REF: HUD Handbook 4150.1 Rev-1, Section 8-2.E. (or HUD Handbook 4150.2)

Inspection - The attic must be examined whether access is by pull-down stairway or scuttle. At a minimum, the appraiser must enter head and shoulders into the attic.