If your home is being sold to a buyer using an FHA loan then you will have an FHA Appraisal. To make it easy to pass use this FHA Appraisal Checklist.
Home buyers and sellers are often surprised to find that FHA appraisers will be inspectingthe property. This is different than a standard appraisal, where the appraiser just wants to know what the value of the house. When an FHA home loan is being used, the appraiser basically has to perform double duty.
Here are the mai differences:
Conventional:In a typical real estate transaction, with a conventional (non-government-insured) home loan, the appraiser is mostly concerned with the current market value of the property. That is his primary objective when visiting the house. He is only concerned with the condition of the property as it relates to thevalue.
FHA:When an FHA loan is being used, the appraiser has two objectives. (HUD) requires the appraiser to determine the current market value, just like a conventional appraisal. They are also required to do a property inspection to be sure the home meets HUD's minimum standards for health and safety. This is what makes the FHA appraisal process unique.
The FHA Single Family Housing Policy Handbook says “HUD requires every property to be safe, sound, and secure to be eligible for FHA insurance”. The property must also comply with HUD’s Minimum Property Requirements (MPR) and Minimum Property Standards (MPS). In other words, the appraiser has to follow FHA guidelines and look at things a regular appraisal might not look at.
Take a proactive role and use this checklist to make sure your home passes the appraisal.
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
""Mimi Osterdahl not only helped me buy my house and get great financing, she also worked closely with longtime associates in the business—including mortgage brokers, land title companies, inspectors and many others—to ensure the deal went through. She was professional throughout, but brought a much-needed human touch to the proceedings. Without a doubt, I would recommend Mimi Osterdahl to anyone interested in buying a house or selling a house—or even thinking about it. I cannot understate how much I appreciate the invaluable assistance Ms. Osterdahl provided to me." "