VA loans up and FHA loans down

VA loans up and FHA loans down because FHA increased its mortgage insurance cost
Excerpts:
Of the 16.4 million active-duty service members and military veterans with mortgages, less than 12% have a loan guaranteed by the Department of Veterans Affairs.
A sharp increase in Federal Housing Administration mortgage insurance premiums is making the VA more competitive, according to Megan Booth, senior policy representative at the National Association of Realtors.
“There is not a Realtor alive today that thinks FHA is a better deal” for veterans, Booth said. “That is helping the VA grow and it will continue to help the VA grow.”
VA lenders originated a record 629,300 single-family loans in fiscal 2013, which ended Sept. 30. The agency endorsed 90,820 single-family loans in the fiscal second quarter, totaling $20.1 billion, down 10.5% from the prior quarter. FHA endorsements declined at twice that rate over the same period. Sixty-three percent of VA loans are going to homebuyers rather than for refinancing, according to agency officials.
…..
Meanwhile, lenders continue to complain that there is a shortage of VA-approved appraisers and underwriters, which slows processing times. …
But the VA is becoming more responsive. “VA is trying to get more appraisers and weeding out the bad ones,” Booth said at the conference.”

http://www.nationalmortgagenews.com/news/origination/underused-va-mortgage-program-makes-inroads-as-fha-costs-rise-1041954-1.html

If you can’t access the full article without registering, there is a summary at: http://realtormag.realtor.org/daily-news/2014/06/13/va-loans-gain-popularity-fha-costs-rise

The June 2014 issue of the paid Appraisal Today had an article on how to get on the VA panel. It is very different than applying for panels for AMCs, Lenders, or FHA. No AMCs, C&R fees, appraisers treated as professionals, etc. I spent a lot of time interviewing many appraisers and VA personnel to find out about reference letters, re-applying, etc.

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VA wants fee appraisers!!

VA is A Most Excellent Appraisal Client!!
VA is one of the last lender clients that pays C/R fees with no bidding. Increasingly, even direct lenders are asking for bids, or just cutting appraisal fees.
What is most important to me is that, in direct contrast with most AMCs, VA considers its fee appraisers to be professionals.
You can apply for the VA panel without reading this article, but I have lots of “insider tips” that makes it much easier.
Applying for the VA panel is not like AMCs, other lender clients or FHA. There are specific requirements, such as three reference letters, two of them from appraisers.
There are lots of tips in this article such as:
– How long does it take to get on the panel?
– Sample phrases for reference letters (3 are required)
– Tips on getting on the panel
– Who does the reviews?
Published in the June 2014 issue of the paid Appraisal Today.
To read this article, and many more, subscribe to the paid Appraisal Today!!
Subscribers also get FREE 4 Special Reports and 18+ past issues of Appraisal Today!!
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Second unit or accessory dwelling?

Source: www.sacramentoappraisalblog.com  – Ryan Lindquist
Note: Ryan’s blog postings are written for home owners in his area, but are often helpful for appraisers also.

Excerpts:

Is it a second unit or an accessory dwelling? How do you know the difference? If the post office gives the second structure an address, that makes it a second unit, right? Or if the dwellings are separately metered, it must mean there are two units. Let’s talk through some distinctions below, and then discuss a bit of a “monkey wrench” since there is an added subjective layer when making this call.

The Short Answer: A second unit and an accessory dwelling might look like the same thing to a casual observer, but what matters most in determining whether a structure is a second unit or accessory dwelling is what zoning allows and whether the market perceives the structure as a second unit or not. The post office might have a separate address for an accessory dwelling, but that does not make it a legal and legitimate second unit. The utility company might have two meters on site also, but even that does not mean there are two units. The key comes down to the property being legal as two units in the eyes of the city or county, recognized by the market as a second unit, and even how the dwelling contributes to value.

The Monkey Wrench: Part of determining whether something is an accessory dwelling or second unit comes down to its contributory value, and the appraiser is really going to have to give this some thought…

My comment: I’m working on an appraisal of a property that has two legal homes on one lot. The front house is 2 bedroom/1 bath 1,500 sq.ft. The rear house is 2 bedroom/1 bath 1,000 sq.ft. In my city, most detached units are small “cottages” behind much larger homes and are marketed as homes with an extra unit and as duplexes. Most sell as homes with a small rear unit. Of course, when I got to the property, I found out the rear unit was much larger than the typical rear cottage!! Our market is very, very strong with a shortage of inventory. Many buyers are priced out of the sfr market and are looking at properties with 2 units, but they want a unit with at least 3 bedrooms for owner occupancy. I am still trying to figure out how my subject fits into this market as the front unit lacks a third bedroom, but does have a small room that could be used as a child’s bedroom. I am interviewing lots of agents and going on the weekly open home caravan looking at listings. Fortunately, this is not for a lender so I can take extra time to figure it out!!

http://sacramentoappraisalblog.com/2014/06/17/is-it-a-second-unit-or-an-accessory-dwelling/

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Very, very funny appraisal video!!

I just kept smiling and laughing!! Definitely one of the best, if not The Best, and Most Original, humorous appraisal video I have ever seen!!

Videos by Gary F. Kristensen, A Quality Appraisal, www.aqualityappraisal.com

“Thrift Shop” parody called “Portland Appraiser Shop.”  Lotsa comments!! What’s your favorite “Scene”? Mine is what he does with his comp printouts!!!!

Check out their other videos at their YouTube Channel

If you have a link you like, send it to me. You may see your name in this email sent to almost 14,000 appraisers!! Just hit the reply button.

This is an excerpt from my FREE appraiser email newsletters. To get the full newsletters, go to www.appraisaltoday.com and enter your email address in the left side of the Big Yellow Box!!

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How to use Google addresses in your appraisals!!

How to use Google addresses in your appraisals!!

Google’s Street View is doing photos all over the world!!

I used to spend a lot of time doing preliminary research on an appraisal by looking up property data on public records. Now, I just google the address!! Google provides a front photo and the search often includes other services such as zillow and trulia that provide public records data.

Someone calls or emails you about an appraisal. Hopefully, you check out the property before you decide whether or not you want to do the appraisal and decide your fee. Just google the address!! You can do it in your car with your smart phone.

Do you ever get back to the office and notice that your comp photo doesn’t match the MLS photo or, more likely, you are not sure you are selecting the correct photo?
You sometimes can also zoom in on google photos to check the address of a property.

Living in a rural area? Keep a lookout for a Google car,motorcyle,bicycle,camel,?? They seem to be everywhere!!! Or, just check out your relatives’-friends’-ex’s-child hood homes. It is endless!!

Click here to see where Google is now, has been, and where it is going?
https://support.google.com/maps/answer/68384?hl=en

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