Does FHA Appraisal Stay with Property?
When it comes to real estate transactions involving FHA loans, one common question that often arises is whether the FHA appraisal stays with the property. The short answer is no, an FHA appraisal does not stay with the property.
An FHA appraisal is specific to the borrower and the property at the time of the appraisal. It is meant to provide an unbiased assessment of the property’s value and condition. Once the appraisal is completed, it belongs to the lender and is used to determine the loan amount that the borrower qualifies for.
If a different borrower or buyer purchases the property after the initial FHA appraisal has been completed, a new appraisal would need to be ordered by the new lender. This ensures that the new lender has an up-to-date and accurate assessment of the property’s value before issuing a loan.
Related FAQs
1. Can you reuse an FHA appraisal?
No, an FHA appraisal is not transferable between borrowers. Each borrower must obtain their own appraisal.
2. Does a new appraisal have to be ordered for an FHA streamline refinance?
In most cases, an FHA streamline refinance does not require a new appraisal. However, there are exceptions, such as if the property has significantly changed since the initial appraisal.
3. Who pays for the FHA appraisal?
The borrower is typically responsible for paying for the FHA appraisal as part of the loan closing costs.
4. How long is an FHA appraisal valid for?
An FHA appraisal is typically valid for 120 days. After that time, a new appraisal may be required.
5. Can an FHA appraisal be used for a conventional loan?
In most cases, an FHA appraisal cannot be used for a conventional loan. Different lenders may have their own appraisal requirements.
6. Are FHA appraisals more strict than conventional appraisals?
FHA appraisals tend to have stricter guidelines compared to conventional appraisals, particularly when it comes to safety and structural issues.
7. Can a seller dispute an FHA appraisal?
While sellers do not have direct input into the FHA appraisal process, they can request a reconsideration of value if they believe the appraisal is inaccurate.
8. 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 buyer may need to make up the difference in cash or renegotiate the purchase price with the seller.
9. Can a buyer request a copy of the FHA appraisal?
Buyers do not typically have direct access to the FHA appraisal report, but they can request a copy from the lender if needed.
10. Can an FHA appraisal be transferred to a different property?
No, an FHA appraisal is specific to the property that was appraised. A new appraisal would need to be ordered for a different property.
11. Can a buyer challenge an FHA appraisal?
Buyers can challenge an FHA appraisal if they believe there are errors or inaccuracies in the appraisal report. This process generally involves providing additional information or evidence to support the challenge.
12. Can a seller request a copy of the FHA appraisal?
Sellers do not have direct access to the FHA appraisal report, but they can request a copy from the buyer or the buyer’s lender with permission.