If there are problems, the lender may require repairs before approving the home loan. If there are no problems, you can close your FHA loan and purchase the property. What happens after an FHA appraisal depends on whether the appraiser uncovers issues with the property. What Happens After Appraisal and Inspection By getting an inspection as part of the home-buying process, you can have a comprehensive evaluation of the property’s condition and ensure you don’t have any substantial problems after moving in. Like the FHA appraisal, you pay for the inspection, and you should expect it to cost a few hundred dollars. If you don’t have a home inspection contingency in place, you can still back out of the deal but will likely lose your deposit. If the inspector finds any significant issues-and you have a home inspection contingency in your purchase offer-you may be able to negotiate with the seller to adjust the price or request repairs before finalizing the purchase. A home inspector can give you more in-depth insight into the property’s condition than an appraiser can, helping you make an informed buying decision. Getting a home inspected before buying it whenever possible is a good idea. Also, an appraisal is required for an FHA loan, whereas a home inspection is optional. While an FHA appraisal contains elements of a home inspection, it’s not as comprehensive as a home inspection by a licensed home inspector. Soil, particularly signs of heavy metals or other contaminants. Water, including access to clean, hot water, signs of water damage and sufficient drainage away from the home.Here’s an FHA appraisal checklist of some features that an appraiser will examine for signs of damage or contamination: FHA Appraisal GuidelinesĪn FHA appraiser looks over a long list of conditions when appraising a home, which are detailed in the Single-Family Housing Policy Handbook from the Department of Housing and Urban Development (HUD). They’ll also note any safety concerns or issues that don’t comply with FHA guidelines and state any needed repairs and the estimated costs to fix them. In this report, the appraiser will provide details about the home, including the year it was built, square footage and number of rooms. As they determine whether the house is safe, secure and sound, the appraiser will fill out the required Uniform Residential Appraisal Report. This appraiser will inspect the property’s interior, exterior and surroundings and assess its value based on comparable properties and other factors. The FHA appraisal timeline may span a few days or a week, involving an FHA-approved, licensed appraiser visiting the property. Whether you’re buying an older home or a new construction, the FHA requires an appraisal to ensure the house meets its minimum property requirements and standards. On the other hand, FHA appraisals involve a closer inspection of a home’s physical condition, such as its roof, foundation, utilities and appliances.īy ensuring the home meets its minimum property requirements, the FHA ensures that it’s not helping people buy a property that could endanger them. The appraisal fulfills two purposes: first, it assesses the market value of the home, and second, it makes sure it’s safe and livable.Ĭonventional appraisals simply assess a home’s fair market value to assure the lender that it’s not extending too much money to the buyer. If you’d like to buy a home with an FHA loan, you’ll need to get the home appraised by an FHA-approved appraiser first.
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