What Process Does an FHA Appraiser Follow?

An FHA appraiser will perform all of the standard inspections that an appraiser for conventional loans will perform and more. In general, the inspection of an FHA appraiser will be much more thorough.

In order for a home to qualify for an FHA insured mortgage, it must be a healthy and safe environment. While the ultimate goal is to determine the value of the property, an FHA appraisal is done with a consideration for suitable habitation and sanitary conditions. The appraisal is not a home inspection, which should be done prior to the appraisal, but similar concerns may be highlighted as problematic.

If the appraiser finds that there are unsafe conditions, such as broken steps, no smoke detectors, asbestos, lead, insect or rodent nesting, or broken windows and screens, a list (called a VC form) will be given to the borrower. The items on the list will be required to be repaired or addressed by the borrower, and the appraiser will present a value of the property "as repaired."

It is important to note that if there are major renovations required in order for the home to meet sufficient habitable standards, the mortgage application will be rejected until a suitable property if found.



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