How long is an FHA appraisal good for 2023?

How long is an FHA appraisal good for 2023?

**An FHA appraisal is typically valid for 120 days, but due to the high demand and backlog in the real estate market, it may be extended to 240 days in 2023.**

FAQs about FHA appraisals:

1. How does an FHA appraisal differ from a conventional appraisal?

An FHA appraisal focuses on evaluating the condition of the property to ensure it meets the basic safety and livability standards set by the FHA, while a conventional appraisal is more focused on the market value of the property.

2. Can I use an FHA appraisal for a conventional loan?

No, an FHA appraisal is specifically prepared for an FHA loan and may not meet the requirements of a conventional loan.

3. What happens if an FHA appraisal expires before closing?

If the FHA appraisal expires before closing, the lender will need to order a new appraisal to ensure the property’s value and condition haven’t changed significantly.

4. Can I request a copy of the FHA appraisal?

Borrowers have the right to request a copy of the FHA appraisal from their lender once it has been completed.

5. What factors does an FHA appraiser consider when evaluating a property?

An FHA appraiser considers the property’s condition, safety, and market value, as well as its compliance with FHA property standards.

6. Can an FHA appraisal be transferred to another lender?

Typically, an FHA appraisal cannot be transferred to another lender as it is tied to the loan application and lender that ordered it.

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

In a normal market, an FHA appraisal can be completed within a few days to a week, but due to the current demand and backlog, it may take longer in 2023.

8. Can I challenge the results of an FHA appraisal?

Borrowers can challenge the results of an FHA appraisal if they believe there are errors or inaccuracies in the valuation or property assessment.

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

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

10. Is an FHA inspection the same as an FHA appraisal?

No, an FHA inspection focuses on the property’s structural integrity and safety, while an FHA appraisal assesses the property’s overall condition and value.

11. Can I use a previous FHA appraisal for a new loan application?

In some cases, a previous FHA appraisal may be used for a new loan application if it is still valid and meets the lender’s requirements.

12. Can I choose my own FHA appraiser?

Borrowers cannot choose their own FHA appraiser, as the lender is responsible for selecting a qualified and unbiased appraiser for the property evaluation.

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