Home Valuation Code of Conduct changes the business of appraisals

Let’s talk about how the Home Valuation Code of Conduct (HVCC ), which went into effect in May of 2009, is impacting conventional home loans in Clark County. Appraisals are more expensive for the borrower, as well as time consuming. Additionally, by law, there is no contact between the loan officer and appraiser–not even the lender and appraiser.  While these guidelines were established to ensure more accurate home valuation, it makes scheduling of appraisals to coincide with closing and updating borrowers more difficult. Additionally, the longer time period to get an appraisal makes it more difficult to close the loan in the same time period. The upside? We are working our hardest to make the transition and changes in the industry seamless for our borrowers!

FHA Home Loans

We love FHA! It’s still the best first-time homebuyer program around! The down payment can be gifted by a family member, and closing costs and prepaids can still be paid by the seller. With lender guidelines tightening on credit scores, what program other than VA will allow a borrower to purchase a house or refinance their home with a 620 credit score, no reserves, and no hit to the interest rate?

USDA Home Loans

Thank goodness USDA home loans came along! Home loans through the United States Department of Agriculture are great 102% loans with no mothly mortgage insurance and great interest rates. Closing costs can be paid by the seller. For the buyer who wants to live in a rural area, and can meet the guidelines, it can’t get any better! USDA loans do usually take longer to close due to the fact that Rural Development underwriters are slammed right now!

–Carole Collett-Wheeler, Government Mortgage Specialist