F. Shared Wells - Shared wells may serve existing properties which cannot feasibly be connected to an acceptable public or community water supply system. A shared well shall have a valve on each dwelling service line as it leaves the well. A shared well shall service no more than four living units or properties. A shared well must have a shared well agreement and shall be binding upon signatory parties and their successors in title. More information on this agreement can be referenced in HUD Handbook 4150.1 Rev-1, Section 12-16.
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Borrowers should be encouraged to obtain a detailed home inspection of the property. Borrowers should complete sufficient research of home inspector’s qualifications and designations to ascertain that they feel comfortable with the individual they hire. HUD does not maintain lists of approved Home Inspectors.
Valuation Condition Sheet (form HUD-92564-VC) - Repairs and other conditions of the appraisal are to be indicated on the “Valuation Condition (VC) Sheet” found on line at HUDClips or REAC’s site at (Legal size paper is needed to print this form.) Handbook 4150.2 provides instructions on the completion of the this form.
Excessive Conditions Required - 1. Requiring Repairs -
a. Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants. The three S’s:
1) Salability - preserve the continued marketability of the property
2) Safety - protect the health and safety of the occupants
3) Security - protect the security of the property (security for the FHA insured mortgage.)
b. Avoid unnecessary requirements because they increase housing costs without adding any basic amenities to the property.
c. While appraisers are not to add repairs beyond FHA’s guidelines, the Underwriter (Mortgagee) may add requirements as a condition of making the loan. Individual mortgagees have the right to make additional requirements they feel necessary to protect their investment.
Copy Printed: REVISION I
02/16/0225 Revision Effective: 05-30-00