the file when the loan is submitted for mortgage insurance. A letter to the file from the DE Underwriter is the only item to be included in HUD’s insuring file.
C. Criteria for Agreement Acceptance:
The agreement includes the entire private road system to the public road;
The agreement and access must be legal and in perpetuity (i.e. run with the land);
The road is in an acceptable condition. The roadway(s) within the system must have all-weather surface(s). An all-weather surface is defined above.
The agreement states how the costs are to be shared (e.g. equally by all lots, pro‑rata).The provision for maintenance must not create an unusual or abnormal burden upon the ownership of the subject property.
All of the property owners served by the private road system must be party to the agreement.
The roadway meets local jurisdictions emergency service access requirements.
The above requirements may be waived by the Direct Endorsement Underwriter when the subject property abuts a publicly maintained road and the easement is a common driveway between two neighbors, and it is all weather, such as in a shared driveway in many older parts of cities.
To be eligible for FHA Insurance a property is to be “legal” and free of health and safety hazards and major structural problems. If the use is not legal, the property is not eligible for HUD mortgage insurance and remains such until it becomes legal. A property can be “legal” “non-conforming”. In this case the non-conformance part is to be reflected in value, if applicable.
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Unique Properties - Sometimes a unique property, such as a log home, extra small home, lower than normal ceiling heights, etc., is submitted for FHA insuring. The eligibility of these properties depends on whether or not the property is structurally sound and readily marketable. If a property meets these criteria, the appraiser establishes market value. However, depending on the uniqueness of a property, the final determination to accept or reject the house is made by the lending institution’s underwriter.
Copy Printed: REVISION I
02/16/0215 Revision Effective: 05-30-00