Finance


What You Need to Know About FHA Appraisals

All loan officers do not appreciate FHA loans. The loan officers that do not think highly of FHA loans feel this way because of their guidelines regarding appraisal. Some believe that the requirements are too hard to accomplish and is not worth the time. The guidelines are not necessarily too hard to follow; they are just designed in a way to guarantee that the house is safe. Overall, they are put in place to ensure that the houses are free of safety hazards concerning their structure. Some of the features of the house that will be inspected to ensure the safety of the home are its crawl and attic spaces, the roof and what kind of condition it is in, the home’s electrical and heating units, and the hot water heater. Whether or not the home has paint that has a lead base, the size of the windows in the bedrooms, and if there are any signs of mold and other environmental problems will also be investigated to make sure that there are no safety hazards present in the home. The appraiser will inspect a lot of other aspects of the home, but these are some of the primary things that they will be looking at. It is important that you are aware that it is necessary that the appraiser is FHA certified for the job to be appropriately completed.

Some of the things that are certain to be pointed out are the outside areas of the bedroom windows, roofs that have multiple layers of shingles, structural problems found within the foundation, issue with paint chipping or peeling that is usually found in homes that were constructed after 1978, doors and windows that are broken, issues with drainage, wells that are not currently being operated, and any signs of pests.

Every point that has the potential to be brought to your attention is associated with the home being safe and sound. This provides the lender with a piece of mind that his money is being used towards a home that is not a safety hazard. The worst thing that could happen to a lender is that the possession of the home is returned to him due to issues with the home’s foundation or other hazards. Be aware that other things could be brought up by the appraiser, the guidelines are updated and in some cases can be based on the area that the home is in. the primary purpose for an appraiser is so that it will have the qualifications necessary to obtain a FHA mortgage.