|FHA Appraisal refers to the process of assessing the market value of a property that a borrower wants to buy using an FHA-insured mortgage solution. The appraiser must be approved by the Federal Housing Administration. This is because an approved appraiser is complete with all necessary certification requirements and understands well the appraisal guidelines of the United States Department of Housing and Urban Development (HUD).
One can find the general appraisal requirements, checklist, cost and other details in HUD guidelines 2011. The list of approved appraisers can be found on FHA Appraiser Roster. Handbooks, mortgagee letters and housing notices containing appraisal guidelines for new construction, molds, septic and general purposes can be downloaded from HUDCLIPS.
FHA Appraisal Guidelines
Some of the basic things contained in the FHA appraisal guidelines relate to attic inspection, crawl space, conditions of roof, windows and other materials, electrical and heating system and proper functioning of appliances like hot water heater. The questions like whether the home has lead-based paints or is there any repair requirements need to be answered as the final estimate is based on these. Broken windows, leaking roofs, drainage problems, peeling paint surfaces, emergency door, pests, termites, molds, septic and Inoperable wells are some of the issues that affect the decision of an appraiser.
This is just an overview of FHA appraisal guidelines. For complete details refer to the HUD handbook. You can also find resources like appraisal faq, process, guidelines, and inspection requirements and checklist. An appraisal is good for six months and only upon the expiration of this period a residential property can be reappraised. In case the appraised value is lower than sales price, the buyer’s agent should convince the seller to reduce the cost as the home is unlikely to sell at that price.
Finding an FHA-certified appraiser is easy as HUD maintains a database of such professionals, location-wise. You can search an appraiser by license, license expiration date, name, city, state and zip code.
The minimum eligibility requirements for appraiser roster include a state certification based on the criteria set by the Appraiser Qualifications Board (AQB). Moreover, it is also required that the applicant is not listed on HUD’s Credit Alert System (CAIVRS), GSA’s Excluded Parties List System (EPLS), and HUD’s Limited Denial of Participation (LDP). New applicant should upload the application and certification in PDF format. HUD-92563 is the application form that you can fill-in using FHA Connection (FHAC).