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#2248421 - 01/29/21 10:31 PM Dwelling? -Accessory unit being constructed
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The appraisal that I'm reviewing states an accessory unit is currently under construction and states it will have a family room, kitchen, bed and bath. Only the framing is completed on the inside. Would you consider this a dwelling unit or would the construction of it have to be completed first?

Thanks!

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#2248423 - 01/29/21 10:42 PM Re: Dwelling? -Accessory unit being constructed BA13
raitchjay Online
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In what context are you asking your question? HMDA? Something else?
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#2248425 - 01/29/21 11:00 PM Re: Dwelling? -Accessory unit being constructed BA13
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Well that might help! Yes, HMDA.

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#2248426 - 01/29/21 11:01 PM Re: Dwelling? -Accessory unit being constructed BA13
raitchjay Online
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Can you give some more details? What's the purpose of the loan? What (else) is it secured by? Another dwelling? What is the proposed purpose/use of this "accessory unit"?
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#2248428 - 01/29/21 11:05 PM Re: Dwelling? -Accessory unit being constructed BA13
raitchjay Online
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And....is your loan temporary (designed to be replaced by financing of a much longer term) or no?
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#2248429 - 01/29/21 11:18 PM Re: Dwelling? -Accessory unit being constructed BA13
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Rate/term refi of primary residence, secondary market loan. The number of units imported into our HMDA software as 1 and the appraisal report didn't show a a number of units so I read through the comments to investigate further. He mentioned an accessory unit currently being constructed and would have a kitchen, bath and bedroom. We have inquired with the the lender about it but I wanted to do some research myself while I wait for her response.

I guess I'm going with, could someone dwell there? Maybe not now but they definitely could when it's finished. Does it have to be completed for it to be a dwelling?

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#2248430 - 01/29/21 11:22 PM Re: Dwelling? -Accessory unit being constructed BA13
raitchjay Online
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I'd really want to know what the plans were......if it's simply going to be a guest house (with no permanent dwellers), then i'd be inclined to not show it as a "dwelling". If on the other hand, it were being constructed so that grandma could move in and live there, then i WOULD be inclined to show it as a "dwelling". Without that knowledge? Take your pick i guess and get your argument ready?

But to answer your other question.......no, a "dwelling" doesn't have to be already constructed to count as a unit. Take any combined construction-perm loan as an example. Reportable, but as of consummation, there's nothing but dirt there.

Hope that helps some, as i'm outta here for the weekend.
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#2248447 - 01/31/21 11:46 PM Re: Dwelling? -Accessory unit being constructed BA13
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Ok. There was discussion that because the additional structure was under construction it didn't count but we felt the same as what you said above. Just wanted to make sure we weren't missing anything. We're going to have the lender confirm the plans for the additional structure. Thank you.

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