How much does an FHA appraisal cost? This is a common question, most often asked in conjunction with whether or not the FHA regulates this expense as part of the FHA home loan process.
The Cost Of FHA Appraisals And Home Inspections
The first thing to remember when you are budgeting for an FHA appraisal is that you will also need to set aside money for a home inspection.
You should never rely on the appraisal alone to determine whether the home, condo unit, or mobile home or modular home is suitable to purchase.
The FHA appraisal costs money, and the home inspection costs money too. Borrowers who balk at the idea of paying “twice” for a service that is mistakenly viewed as nearly identical (appraisals are NOT identical to inspections) should know that paying hundreds for a home inspection can save you thousands of dollars later.
So the cost of both the appraisal and inspection are necessary to make a fully informed decision about whether to purchase a particular property with an FHA mortgage.
How Much Does The Appraisal Cost?
There is not national standard for the expense of an FHA appraisal. Borrowers should know that these costs vary depending on the housing market and other factors. The FHA merely requires that such costs be billed to the borrower for actual services rendered and that the cost must be considered reasonable and customary in that housing market.
Does The FHA Set The Cost Of The Appraisal?
No. The FHA does not set or regulate the FHA appraisal costs except as mentioned above.
How Much Is A Home Inspection?
Much like the FHA appraisal, the home inspection process will be billed according to the standards in a given housing market. Borrowers will need to inquire directly with a professional home inspector to learn how much to budget for this process.
Is An Appraisal Or Home Inspection Required?
The FHA appraisal process is a requirement and you will not receive FHA loan approval without the appraisal. The home inspection is not mandatory, but borrowers should not consider this optional process to be something they can safely omit-buying a home without a home inspection is like buying a used car you do not test drive.
If you are not sure how to proceed after an appraisal or home inspection, it may be a good idea to discuss your concerns with the lender, real estate agent, or a real estate lawyer depending on circumstances.
Borrowers who get bad results on a home inspection and need to walk away from the deal should contact their loan officer immediately to learn how to do so without violating the terms of any legally binding agreement that has been signed in association with the FHA mortgage loan process.