Are leases required for purchase transactions even when the property is being delivered vacant?
Executed leases are not required provided the appraiser addresses the marketing time and an analysis of the rental market is completed via rental comparables. The proper appraisal form should be utilized as well as the 216 form. Leases may be waived if these factors are positive. Sufficient reserves should also be documented in addition to any other reserve requirement to cover the marketing time as established by the appraiser.
Related Questions
- What is proper documentation when a borrower is purchasing a rental property under the Stated/Stated program when the property is being delivered vacant? Is the appraisal sufficient?
- I would like to purchase a vacant building in my neighborhood. Can the Vacant Property Initiative help?
- Are leases required for purchase transactions even when the property is being delivered vacant?
