Dec 12 2007
What Is An FHA Appraisal?
First off: let’s define what exactly FHA is: FHA or the Federal Housing Administration is an agency of the Federal Government that insures private home loans for existing or new homes. FHA loans are sometimes ideal for first time homebuyers as they only require a 3 percent down payment and have somewhat less stringent mortgage qualification guidelines.
When you apply for an FHA mortgage, the appraisal process is a bit different than conventional mortgage loan appraisals. FHA requires that only an FHA certified appraiser do the actual appraisal. FHA appraisals are a bit more on the comprehensive side than a conventional. For example, the FHA appraiser will look for many things a typical appraiser may overlook such as wood rot, termite damage, roof damage, etc. Any defects or issues that the FHA appraiser finds are reported to the lender and the lender will in turn require these issues to be corrected prior to the sale of the home.
A few common FHA appraisal issues are wood rot, for example, if the home in question has a wooden fence touching the home and that wooden fence has signs of wood rot, the FHA appraiser will typically recommend that the wood rot be corrected, OR, if there is a bit of wood rot at the home’s front door, likewise, this will be on the list to be repaired. This more stringent approach is used to not only protect the mortgagee or homeowner to be, but also the Lender.
Looking for a knowledgeable and reliable FHA appraiser? Put the FHA appraisal experts at First National Appraisal to work for you today: We service all fifty states and provide fast, reliable and accurate appraisals in your city. Call us today at 866.446.5916 or fill out our online FHA appraisal order form here.
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