Appraisal_Inspection

EXTERNAL FACTORS
1        Subsidence/Sink holes and slush pits
2        Operating oil or gas wells within 300 feet of the homes including gasoline stations
3        Abandoned oil or gas wells within 10 feet of new/existing homes
4        High-pressure gas or petroleum lines within engineering 10 feet of the property
5        Excessive noise or hazard from heavy traffic area
6        New/proposed construction in airport clear zone
7        Excessive hazard from smoke, fumes, offensive noises or odors
8        Proximity to dumps, landfills, industrial sites or hazardous materials
9        Overhead high voltage transmission lines within fall distance
10      Low voltage power lines may not pass directly over the primary living unit, including pools, on the property being insured by HUD
11      Flood areas: Homes located in zones "A" and "V" (as stated on the FHA appraisal) will require flood insurance. Homes located in zones
           "B" and "C" do not require flood insurance. Homes that require flood insurance and are not located in an area where the National Flood
          Insurance Program is in force are not eligible for FHA financing. Properties subject to frequently recurring flooding, subject to any
          potential hazard to life and safety or where escape to higher ground would not be feasible during flooding are not eligible for FHA
      financing.
12      New and proposed construction is not eligible if any part of the home that is essential to the property's value and subject to flood

ACCESS FACTORS
13        Accessible roads to home
14        Roadway surface, gravel is okay
15        Private road or shared driveway must have a recorded easement(s).
16        Private Road Maintenance by Home Owner's Association (HOA) or ownership of the roads by HOA.

ON-SITE FACTORS
17        New/proposed construction in Special Flood Hazard Areas
18        Stationary storage tanks with more than 1000 gallons of flammable or explosive material
19        Surface evidence of an Underground Storage Tank (UST)
20        Grading that provides positive drainage from structure includes gutters, downspouts and landscaping
21        Standing Water proximate to structure
22        Presence of pools of liquid, pits, ponds, lagoons, stressed vegetation, stained soils or pavement, drums or odors
23        Excess land is defined as that which is larger than what is typical in the neighborhood AND capable of a separate use. Generally, the
        excess portion can be subdivided and marketed as an individual parcel. However, in small communities and outlying areas, appraisers
        must use different criteria because the market may accept a wide variance in lot sizes. If the plot contains excess land, the appraiser
        should describe it but not value it. In this instance, the appraisal is based upon a hypothetical condition. A legal description of the portion
        being appraised is required. The lender will require that the excess land be excluded from the mortgage security.

WELL & SEPTIC
24        Determine whether connection to a public water system is feasible. If feasible, hookup is mandatory. If community based supply,
        appraiser needs the company name, address and phone number.
25        A well must be a minimum of 50 feet from a septic tank, 100 feet from the septic tank's drainfield and a minimum of 10 feet from any
        property line. If the property is served by dug wells, springs, lakes, cisterns or rivers it is INELIGIBLE.
26        Shared wells may serve existing properties which cannot feasibly be connected to a public or community water supply system. A
         shared well shall have a valve on each dwelling service line as it leaves the well. A shared well shall service no more than four
         properties. A shared well must have a shared well agreement and shall be binding upon signatory parties and their successors in title.
         The agreement shall also be recorded in local Deed Records
27        Determine whether connection to a public sewage system is feasible. If feasible hookup is mandatory If community based sewage,
         appraiser needs the company name, address and phone number.
28        If house is vacant an inspection of the septic is required
29        Readily observable evidence of On-site septic system failure

STRUCTURE
30        Structure and accessory buildings are ground level and/or wood is touching ground
31        The house and/or other structures show obvious evidence of active wood boring insect infestation
32        Floor support systems must not have significant cracks.
33        Framing/walls/ceiling must not have significant cracks
34        Evidence of water/leakage or damage
35        Evidence of rodent infestation
36        Visible holes in exposed areas that could effect structure
37        Significant water damage

ATTIC
38        Evidence of holes
39        Roof support structure intact or damaged
40        Significant water damage visible from interior
41        Ventilation by vent, fan or window. Note: The attic must be examined and entered

BASEMENT
42        Adequate access
43        Evidence of significant water damage
44        Significant cracks or erosion in exposed areas that could effect structural integrity
45        Soundness / Cracks / shift

CRAWL SPACE
46        Adequate access
47        Insulation, ventilation and any other structural problem
48        Distance from floor joists to ground a minimum of 18 inches from the bottom of joists
49        Support beams intact
50        The crawl space must be clear of all debris and trash and must be properly vented.
51        The crawl space must not be excessively damp and must not have any water ponding.
52        If dampness is noted, a vapor barrier is required.
53        Propane fired furnaces located in a crawl space area is not acceptable.

ROOFING
54        Covers entire house
55        Evidence of deterioration of roofing materials
56        Roof life is less than two years, a maximum of 3 layers of shingles is allowed.
57        Holes
58        Signs of leakage observable from the ground
59        All flat roofs require inspection by a roofer

Furnace/Heating System
60        Unit turns On and warm air is emitted
61        Heating does not emit smoke or unusual or irregular smell
62        Unit does not shut down prior to reaching desired temperature
63        Significant holes or deterioration on the unit(s)
64        Space heaters and others - must comply with local jurisdictional guidelines. Heating must be adequate for healthful and comfortable
         living conditions
65        Homes with wood burning stoves or solar systems as the primary heat source must have permanently installed conventional heating
        systems that can maintain at least 50 degrees Fahrenheit in all living areas

Air Conditioning (central)
66        Unit turns On and cold air is emitted with no irregular noise or smoke
67        Unit shuts down prior to reaching desired temperature
68        Significant holes or deterioration on the unit(s)

Electrical System
69        Electrical switches turn "on" or "off"
70        Presence of sparks or smoke from outlet(s)
71        Exposed wiring visible in living areas
72        Frayed wiring

Plumbing System
73        All water heaters must have a non-adjustable temperature and pressure-relief valve.
74        Toilets and faucets must function and not leak, with no significant pressure drop
75        Structural damage under fixtures, weak floors
76        Observable surface evidence of malfunction of Sewer System
77        Hot water must function

Other Health and Safety Deficiencies
78        Broken windows
79        Security bars are acceptable if they comply with local fire codes. Bedroom windows with security bars require a quick release
         mechanism for emergency egress. If not so equipped or inoperable,
80        Broken or missing, or unsafe exterior stairs
81        Broken or missing exterior doors and jams, doors must open close and lock, no split jams
82        Inadequate/blocked entrances or exits
83        Steps usually require handrails on three or more risers
84        The mechanical garage door does not reverse or stop when meeting reasonable resistance during closing
85        Bedroom Egress: Occupants must be able to get outside the home if there is a fire.
86        Smoke detectors outside of sleeping area, must be installed in each hallway adjacent to the bedrooms.
87        On levels of the home that do not include bedrooms, at least one operating smoke detector must be centrally located.
88        The appraiser must operate a representative number of windows, interior doors, and all exterior and garage doors, as well as verify that
         the electric garage door operator will reverse or stop when met with resistance during closing.

Lead Based Paint Hazard
For any home built prior to 1978, check for evidence of defective paints surfaces, including: peeling,
Scaling or chipping pant. Both exterior and interior surfaces must be inspected.
Evidence on interior
Evidence on exterior

Asbestos: Asbestos used as roof shingles or siding on a house does not pose a danger. When used as
a wrap for hot water pipes, it is usually covered and poses no danger. When the material is deteriorating
into a fine powder and can be inhaled, it may pose a danger to one's health. Asbestos should be
removed by an expert only in those cases where the deterioration poses a serious health threat; condition
otherwise the appraiser may for repair of the puncture or other damage.

Nonresidential use. Any nonresidential use of the property shall be subordinate to its residential use and character. A property, any portion
of which is designed or used for nonresidential purposes, is eligible only if the type and extent of the nonresidential use does not impair the
  residential character of the Property. Areas designed or used for nonresidential purposes shall not exceed 25 percent of the total floor
area. Storage areas or similar spaces which are integral parts of the nonresidential portion shall be included in the total nonresidential
area. On 203(k) mortgages, the percentage floor area used for commercial purposes follows these standards.

  Stories                          Allowable % of Commercial Purpose
One story building                      25%
Two story building                      49%
Three story building                   33%