Articles and news about FHA loans and HUD requirements. FHA loans are great for first-time homebuyers.

FHA Appraisals Versus Home Inspections

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 is problem-free.

In spite of the fact that a property inspection fee comes out of the buyer

4 Responses to FHA Appraisals Versus Home Inspections

  1. llw says:

    If you have an FHA Appraisal done and the report comes in completely flawed with out dated comps and incorrect information what action can be taken?

    • Joe Wallace says:

      Have you tried contacting the lender and the FHA directly about the required paperwork for an appeal to the original appraisal?

  2. crp says:

    I want to put in an offer on a house that has 4 bedrooms 3 baths but the tax records show 2 bd 2.5 baths so some of the space is unpermitted. I am being told by one lender that fha will be OK with that if 1) it is done in a good workmanlike manner 2) doesnt make the home non-conforming 3) inst used as a part of the appraisal. Is this true?

    • Joe Wallace says:

      What do you specifically mean when you say the space is “unpermitted”? I wouldn’t want to assume–please explain further.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

{mt-289144}