In a covered Fannie Mae assignment, the first and second floors expressly qualify as finished above-grade areas of 1400 SF and 900 SF. A 700 SF finished walkout level is partly below grade. What is the primary dwelling’s finished above-grade area?
Correct Answer
A) 2300 SF
The qualifying above-grade floor areas total 1400+900=2300 SF. The stipulated below-grade 700 SF is separately reported and analyzed for contribution; it is not added to this above-grade total. No averaging of levels applies.
Why This Is the Correct Answer
Option A is correct because the qualifying above-grade floors total 1400 SF + 900 SF = 2300 SF. The 700 SF walkout level is partly below grade, so under Fannie Mae guidance it is treated as below grade regardless of its finish. It is reported separately and analyzed for its contribution, not added to the above-grade total.
Why the Other Options Are Wrong
Option B: 3000 SF
Option B is wrong because 3000 SF results from adding the 700 SF walkout to the above-grade floors (1400 + 900 + 700). A level partly below grade is treated as below grade, so the above-grade total is 1400 + 900 = 2300 SF.
Option C: 1400 SF
Option C is wrong because 1400 SF counts only the first floor and omits the 900 SF second floor, which also qualifies as finished above-grade area. The correct total is 1400 + 900 = 2300 SF.
Option D: 2100 SF
Option D is wrong because 2100 SF results from adding the 700 SF walkout to the first floor only (1400 + 700) while dropping the second floor. The correct above-grade total includes both qualifying floors: 1400 + 900 = 2300 SF.
Any part below, all below
If even part of a level sits below grade, the whole level counts as below grade for Fannie Mae GLA.
How to use: Use this whenever a walkout, split level or garden level appears in a GLA question.
Exam Tip
Add only the levels that qualify as above grade, and list partly below-grade finished space separately.
Common Mistakes to Avoid
- -Counting a finished walkout level in above-grade GLA
- -Omitting a qualifying upper floor from the total
- -Treating a level as above grade because it has large windows or high-quality finish
Concept Deep Dive
Analysis
This question tests the Fannie Mae rule for above-grade gross living area. Only levels that are entirely above grade count toward the above-grade total. Fannie Mae treats a level as below grade if any portion of it is below grade, so the partly below-grade walkout is excluded from the above-grade figure.
Background Knowledge
For Fannie Mae assignments, gross living area is the finished above-grade living area, and a level is considered below grade if any portion of it is below grade. Finished below-grade space is reported on a separate line of the grid and adjusted for its contribution. Finish quality or window area does not move a partly below-grade level into the above-grade total.
Real-World Application
A hillside home has two full floors above grade and a finished walkout level with one side exposed. The appraiser reports the two upper floors as gross living area and shows the walkout as finished below-grade area with its own line adjustment.
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