FHA Appraisal Secrets – What FHA Appraisers Look for in Our Reports
When it comes to property inspection, or in the case of FHA-insured loans, the FHA appraisal, then having a excellent report is what every borrower wants. But do you ever reckon of what the FHA looks for when they appraise a property? What is there or what are there that divide the line between getting a excellent amount of loan and a lousy one? Well, here I share some hints about what the FHA appraisers are looking for in a property.
The FHA appraisers need to make their reports as clean as possible. A clean, comprehensive, complete report helps FHA underwriters to approve the file and go it to the next step. The FHA wants the appraisers to document and clarify as much as possible, include all information requested, submit complete information, limit the use of “See Attached”, limit the use of canned statements and proof read all their work. So make sure that the appraisers do collect much needed information about the house.
Then, the FHA case number is required to be on every page of the appraisal report on the line for “File Number.” The appraiser can use the “Case Number” line for a file name or other unique appraisal identification number.
If there is evidence of hazards and/or nuisances, further analysis and/or testing may be required. In the Appraiser’s Certification it states that appraisers must report any adverse conditions that are apparent, known or learned. They also need to report any needed repairs and any physical or functional inadequacies. Finally, appraisers must address adverse environmental conditions. It seems hard but anyhow it is excellent to have the house appraised as detailed as possible. Especially it will be excellent for the family and their kids who will own the house in the future.
When it comes to the state of a property, FHA refers to the 3 S:
Safety – what they reckon about the health and safety of the occupants
Security – is there any security issue there? Security helps to assure the marketability of a property
Soundness – the structural integrity
If they see any issue on these 3S, then the report should have mentioned it. If the conditions are only on the surface, then the house will be appraised “as is”.
What other things to report then?
In the report, required repairs might include inadequate access/egress from bedrooms to exterior, defective roof with three or more layers of shingles, evidence of structural problems or infestation, defective lead-based paint when home was constructed prior to 1978, lack of water pressure when tested or foul odor coming from septic system, also you may inspect about asbestos usage in the homes built before 1978.
After reading this, now you can be sure that buying a house from the FHA HUD is as safe as with other conventional loans because the FHA Appraisal will look into details about the homes you and your family will be living. Now due to the low interest rates in the market, this is the time to get your FHA home loan before the market is back and the price of houses soar up again. Pleased hunting!
Read also: FHA Refinance and FHA Financing
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