Beginning June 13, 2010, the FHA appraisal guidelines for leasehold properties (also known as houses with ground rent) will be changing.
Confused on the recent news about new FHA ground rent appraisal requirements?
Simply put, the appraiser (this is who will provide an estimate of the homes value by using similar properties that have recently sold around the home you would like to buy) will now need to tell the bank if the ground rent has any adverse effects on the mortgage they are providing to you. The information they will provide will include details on the ground rent agreement; including, conditions, restrictions, and terms. And when the appraiser looks at those similar properties they must make every attempt to use properties that have a ground rent agreement on them as well, and if not then they will be allowed to use similar properties that are “fee simple”.
So what does this really mean to you if you have a Baltimore ground rent home? Just keep in mind that it may take a little longer to hear back from the appraiser and bank when it comes to your appraisal report. And know that all involved are trying to make sound decisions and provide you with a sound and solid mortgage for your new home.
Thank you, Jeremy!
As a side note, many Baltimore neighborhoods have ground rent homes. Even in Baltimore County, the Rodgers Forge neighborhood and the Loch Raven Village neighborhood have many homes with ground rent.
Please contact Jeremy and myself for further information on Baltimore Ground Rent homes and the new FHA Appraisal Guidelines for leasehold properties.