Question:  Is a range/oven required in an FHA appraisal.

 

Answer:  No.  According to Don Fairnot, FHA Review Appraiser and Trainer, FHA has never required appliances.  (GAAPA Meeting, July 8, 2008).

 

A slide-in range is easily removable and is, therefore, not a fixture because of the method of attachment.  Most builders include a range so most buyers would expect one and it would become a fixture based on the intention of the parties.  If someone buys a house without a range, it's obvious he didn't expect a range and it is not a fixture.  Similarly, if the contract includes the range with the sale, it becomes a fixture because of the intentions of the parties.

 

FHA definitely considers a range personal property unless built-in.

 

Some believe a range/oven is required by FHA because the underwriter requires one.  When dealing with an FHA mortgage, the appraiser's contact is the underwriter, not FHA.  Many believe FHA requires the range/oven when, in fact, it is the DE underwriter that requires it.  FHA will rarely look at the appraisal and never before the fact.

 

The ill-informed underwriter believes FHA requires a range/oven and, therefore, requires it.  It is not FHA that requires the range but the underwriter.  FHA made it clear on July 8 that they never required appliances except for built-ins. The guy talking was the guy that looks at a few of the appraisals after the loan has been closed.

 

From Appendix D, Page 26

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Appliances:  Make an entry [X] in the boxes to indicate that these items exist.  An entry in a box means that the item was considered part of the real estate and is included in the value.  If an item is personal property, put a "P" in the box and do not include it in the opinion of value.

Conclusion:

 

1.   Leave the box blank if no appliance (such as a range does not exist)

2.   Enter [X] if the appliance exists

3.   Enter [P] if the item is personal property and do not include it in the opinion of value

 

It is hard to see how the above could possibly be misunderstood.  It provides for a non-existent range/oven and a range/oven that's personal property.  How an appraiser or underwriter would believe that a range/oven is required by FHA is beyond me.

 

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