Articles Tagged With: Home Inspection

May 8, 2012

FHA Appraisal Questions and Answers

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...

March 9, 2012

FHA Appraisals Versus Home Inspections

By Joe Wallace

An FHA-assigned appraisal is a required part of the FHA home loan process. This appraisal insures the property being purchased with an FHA mortgage loan meets FHA standards and assigns a fair market value to the property. But the appraisal does not make any guarantees that the home is defect-free. The borrower must pay for a home inspection to get a better idea of the true condition of the property, any hidden or possible defects, etc. FHA loan applicants should definitely plan to pay for both an appraisal and a home inspection–the FHA appraisal is the mandatory expense, but the inspection is technically optional. But it’s an option that should never be passed up. Even though a property has been approved for an FHA guaranteed loan does not mean it | more...