October 22, 2012
A reader asks, “We had an appraisal 3 years ago when we purchased our house. It came in at $122000. At the beginning of the year, we had a contract with an FHA buyer and the appraisal came in at $117000, this made the deal fall through.” “Our house has been on the market over a year, now we have a contract with another FHA buyer and since it
July 31, 2012
A reader asks, “I
May 8, 2012
There are many frequently asked questions about FHA appraisals, and while this is not meant to be an exhaustive list of answers, we do cover some of the most common questions here: Am I required to get an appraisal for an FHA home loan? The FHA rules say all properties to be purchased with an FHA mortgage must be appraised by an FHA appraiser. There is only one type of exception–the FHA rules permit “certain streamline refinance transactions” to be processed without an appraisal. It’s important to remember that a lender is free to require an appraisal even when the FHA does not require one. What is the FHA policy on reusing appraisals? The official word on this subject is found in the HUD publication 4155.2. The section titled “FHA | more...
May 3, 2012
There are many options with FHA home loans, including something called the FHA Streamline 203(k), which the FHA official site describes as follows: “The ‘Streamline’ (K) Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.” This is good news for borrowers who know their FHA appraisal requires certain improvements or corrections–it’s an option to consider if there’s a sticking point in negotiating such changes with the seller. Additionally, “…like the regular Section 203(k) program, Streamlined (k) is available: To augment an FHA Energy Efficient Mortgage (EEM), To insure the | more...
April 24, 2012
A reader asks, “If the buyer of a home built before 1978 is using an FHA mortgage to purchase, can I assume the appraisal is required to include a note if any chipping or peeling paint was observed both inside and outside of the home? Is there any written verbiage that states what the Appraisal shall include as required by Federal/HUD rules?” FHA loan rules governing appraisals do include rules governing chipping and peeling paint on properties built prior to 1978. According to FHA loan rules found on the FHA official site,
April 23, 2012
There’s a common theme among many of our most frequently asked questions about FHA guaranteed home loans; “Why do the FHA rules say one thing, while my lender says another?” In many cases this question has to do with FHA rules covering appraisals, minimum property requirements, or even the minimum waiting period required after foreclosure before the borrower can try applying for a new FHA home loan. For example, the FHA loan rules about streamline refinancing loans state that an appraisal may not be required under the right circumstances. From the FHA official site: ” Streamline refinances can be insured with or without an appraisal. When an appraisal is completed FHA does not require the repairs (except for lead based paint repairs) to be completed, however the lender may require | more...