How does an FHA appraisal work in 2018?

How does an FHA appraisal work in 2018?

An FHA appraisal is a crucial step in the home buying process for those using Federal Housing Administration (FHA) loans. It is designed to determine the market value of the property being financed and ensure it meets FHA minimum property standards. Here’s how an FHA appraisal works in 2018:

1.

What is the purpose of an FHA appraisal?

An FHA appraisal is done to protect the lender by ensuring the property meets minimum standards and is worth the amount being lent.

2.

Who conducts an FHA appraisal?

An FHA appraisal is typically conducted by an FHA-approved appraiser who is knowledgeable about FHA guidelines and requirements.

3.

What criteria does an FHA appraiser look for?

FHA appraisers look for factors like the property’s condition, location, safety, and compliance with FHA guidelines.

4.

How is the value of the property determined?

The value of the property is determined through a comprehensive appraisal that considers comparable sales, market conditions, and the property’s condition.

5.

What happens if the property does not meet FHA standards?

If the property does not meet FHA standards, the buyer may need to address any issues before the loan can be approved.

6.

Can a buyer attend the FHA appraisal?

Buyers are not required to attend the FHA appraisal, but they have the option to do so if they wish.

7.

Is the FHA appraisal different from a home inspection?

Yes, an FHA appraisal is different from a home inspection. An appraisal focuses on the property’s value and condition, while a home inspection looks for potential issues with the property.

8.

How long does an FHA appraisal take?

An FHA appraisal typically takes a few days to a week to complete, depending on the appraiser’s schedule and the property’s condition.

9.

What is the cost of an FHA appraisal?

The cost of an FHA appraisal varies depending on the location and size of the property but generally ranges from $300 to $600.

10.

Can an FHA appraisal be used for a conventional loan?

An FHA appraisal can be used for a conventional loan, but a conventional appraisal cannot be used for an FHA loan due to the stricter standards.

11.

Can a seller contest the results of an FHA appraisal?

Yes, a seller can contest the results of an FHA appraisal if they believe there are inaccuracies or discrepancies in the appraisal report.

12.

What happens if the property appraises for less than the purchase price?

If the property appraises for less than the purchase price, the buyer may need to renegotiate with the seller, cover the difference in cash, or walk away from the deal.

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