FHA Appraisal Process
We’re looking at purchasing a 2-family home. The offer’s been accepted, we’ve had the inspection done and negotiated issues, getting a little off price. We’re going with a FHA loan so once the contract’s signed the bank gets sends in an appraiser. The appraiser may require repairs before finalizing the loan. Like so many, the…
We’re looking at purchasing a 2-family home. The offer’s been accepted, we’ve had the inspection done and negotiated issues, getting a little off price. We’re going with a FHA loan so once the contract’s signed the bank gets sends in an appraiser. The appraiser may require repairs before finalizing the loan. Like so many, the home is old. It needs typical updating but it’s in livable shape–upgrading older but functioning plumbing, old but non-leaking roof, typical stuff like old tile, some missing window screens, etc. Does anyone have first hand experience with the FHA appraisal? What can one expect?
Dear NYAppraiser,
I just bought a home in NJ where the original room was built in 1700s but has been built on since. Now includes nice kitchen, master bath, etc.
I am running into a major hangup with the FHA Appraisal. The first FHA appraiser quit because the job was “too complex.” The barn is very old and looks like a safety hazard but built very sturdy. Why are they getting hung up on the barn? It’s the house I want to live in. I’ve heard from my loan processor that “FHA doesn’t normally insure old homes.” Is this true?
There are plenty things to find wrong with the place but nothing that a little Tender Love and Care can’t fix.
How do I get over the hump of getting the FHA appraiser to ok everything? So I can move forward. I already have home owners insurance on it, signed contract and ready to go to closing. Just FHA appraiser standing in the way….any advice.
I just want to purchase my first home…and start living the American Dream of homeownership.
Thanks, NYAppraiser.
Thank you so much. That sounds reasonable. -the whole process is anxiety producing.
I’m a FHA approved appraiser, we not as scary as you think, FHA is mainly concerned over safety issues, and that all utilities should be in good working condition. There are limits how far we can check, remember we are appraisers and not building inspectors. We do not check for asbestos, but we may recommend an additional inspection by a profecional, if a safety issue is identified.
Good questions. I’m not sure. I think they want to ensure a place is “livable,” safe, and the buyer isn’t going to be hit by a massive expense the day after closing. -Don’t know how deep they’ll go to determine that though. I wouldn’t think they could require someone to provide information gotten through a specialist.
What if the boiler hasn’t been turned on in years? What if the stoves aren’t connected to the gas lines? Do they do asbestos testing? What if the buyer does asbestos testing on the side — could they keep the results a secret?
Just curious.
This is good to know. Thank you. I’m trying to remember if there’s a stair rail in the basement…think so! We’ll need to update the mechanicals at some point, but they work now. The house is in better shape than a lot of homes we’ve seen. If anyone else has also experience with the process, it would be great to hear it.
I recently went through the FHA appraisal process, and it wasn’t as difficult as I had imagined. Our place has updated mechanicals and newer everything else, so we had no requirements at all from FHA. Apparently, they’re big on stair-railings, and our seller put one on the basement staircase for us. Good luck!