Appraisals & Market Studies

FHA-insured financing for multi-family properties has many advantages in the market, including long terms, high loan to value ratios, and competitive, fixed rates. There are several FHA-insured financing programs available for affordable and/or market-rate multi-family properties, including:

  • 223(f) – Purchase or refinance of existing multi-family properties at least three years old.
  • 202 – Affordable housing with supportive services for the elderly. May be refinanced pursuant to 223(f) to allow for lower interest rates and capital improvements.
  • 221(d)(4) – New construction or substantial rehabilitation.
  • 241 – Supplemental financing for FHA-insured properties to fund substantial improvements or additions.

While there are many hoops that a borrower has to jump through to enjoy the benefits of an FHA-insured mortgage, one of the most important is getting a qualified appraisal. Multi-family appraisals must meet the requirements of the HUD Multifamily Accelerated Processing (MAP) Guide while healthcare properties (including assisted living and memory care) are subject to LEAN processing.

The requirements for MAP/LEAN appraisals and market studies vary by program and are more stringent than that typically required for conventional financing. There are additional requirements in the MAP Guide that an inexperienced appraiser may not be aware of, such as an estimate of remaining economic life and a debt service analysis subject to affordability restrictions.


Therefore, it is important to hire an appraiser who meets the qualifications of the MAP Guide and is experienced in completing these types of assignments.  Submission of a substandard appraisal leads to delays, additional costs, and possible rejection by HUD. The preparation of appraisals and market studies meeting the requirements of the MAP guide and LEAN processing is a primary focus of Van Hazinga Appraisal & Consulting. Andrew Van Hazinga has concentrated on completing these types of assignments since 2007 and has extensive experience in this field.

Andrew Van Hazinga is also experienced in tackling sophisticated assignments that add additional requirements to the appraisal, such as:

  • Estimating the market value of the availability of wellness services designed to support the health & independence of elderly & disabled residents.
  • “As Proposed” appraisals reflecting the value of planned improvements.
  • Phased assignments to allow for planning for acquisition or possible renovations.
  • Use of the appraisal as a rent comparability study with inclusion of the HUD 92273-S8 rent comparability grid& analysis.
  • Properties subject to multiple affordability restrictions.

Van Hazinga Appraisal & Consulting has the knowledge, experience, and ability to complete high-quality appraisals that meet the requirements of the MAP Guide/LEAN processing, are supported by strong market data, present clear and well-reasoned analysis, and reflect the full value of the property.

Please contact Andrew Van Hazinga for more information.