What are the appraisal requirements when an institution finances residential tract developments?
An appraisal for a residential tract development must meet the minimum appraisal standards in the agencies’ appraisal regulations and guidelines. Appraisals for these properties must reflect deductions and discounts for holding costs, marketing costs, and entrepreneurial profit. In some circumstances, as discussed in FAQ 11, an institution may rely on an appraisal of the individual unit(s) to meet the agencies’ appraisal requirements and to determine market value for calculating the loan-to-value (LTV) ratio.
Related Questions
- What are the appraisal requirements when an institution finances raw land, lot development or lot acquisition as part of a residential tract development?
- What are the appraisal requirements when an institution finances construction of a condominium building(s)?
- What are the supervisory LTV limits for residential tract developments?
