How long is FHA appraisal good for?

**The FHA appraisal is typically good for 120 days.**

An FHA appraisal is a key component in the process of securing an FHA loan. Before a lender can approve an FHA loan, the property must be appraised to determine its market value. The appraisal protects both the lender and the buyer by ensuring the property is worth the loan amount. But how long does this appraisal stay valid?

Typically, an FHA appraisal is valid for 120 days from the date the appraisal report is completed. This means that the lender must close on the loan within 120 days of the appraisal being completed. If the loan does not close within this timeframe, a new appraisal may be required.

It is important to note that the 120-day validity period is not set in stone and can vary depending on the lender and specific circumstances. Some lenders may require a new appraisal if the loan does not close within 120 days, while others may be more lenient. It is always best to check with your lender to understand their specific policies regarding appraisal validity.

FAQs about FHA appraisals:

1. Can the validity of an FHA appraisal be extended?

In some cases, lenders may be able to request an extension on the validity of an FHA appraisal. This typically requires approval from the FHA or the appraisal management company.

2. What happens if the FHA appraisal expires before the loan closes?

If the FHA appraisal expires before the loan closes, a new appraisal may be required. This can delay the closing process and potentially impact the terms of the loan.

3. How much does an FHA appraisal cost?

The cost of an FHA appraisal can vary depending on the size and location of the property. On average, an FHA appraisal can cost between $300 and $500.

4. Who pays for the FHA appraisal?

In most cases, the borrower is responsible for paying for the FHA appraisal. This cost is typically included in the closing costs of the loan.

5. Is an FHA appraisal different from a traditional appraisal?

While an FHA appraisal follows many of the same principles as a traditional appraisal, there are specific guidelines and standards set by the FHA that appraisers must adhere to.

6. What factors do FHA appraisers consider when determining the value of a property?

FHA appraisers take into account factors such as the condition of the property, its location, comparable sales in the area, and any potential health or safety issues.

7. Can a borrower request a copy of the FHA appraisal report?

Borrowers have the right to request a copy of the FHA appraisal report. This can help them understand how the appraiser arrived at the property’s value.

8. Can a borrower challenge the results of an FHA appraisal?

If a borrower believes the FHA appraisal is inaccurate, they may be able to challenge the results. This typically requires providing additional supporting documentation.

9. How long does it take to complete an FHA appraisal?

The timeframe for completing an FHA appraisal can vary depending on factors such as the complexity of the property and the appraiser’s schedule. On average, an FHA appraisal can take 1-2 weeks to complete.

10. Are FHA appraisals transferable between lenders?

In most cases, FHA appraisals are not transferable between lenders. If a borrower switches lenders during the loan process, a new appraisal may be required.

11. Can a borrower choose their own appraiser for an FHA appraisal?

Borrowers cannot choose their own appraiser for an FHA appraisal. The appraiser must be selected by the lender or an appraisal management company to ensure impartiality.

12. What happens if the FHA appraisal comes in lower than the purchase price?

If the FHA appraisal comes in lower than the purchase price, the lender may require the borrower to make up the difference in cash or renegotiate the purchase price with the seller.

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