December 10, 2019

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Articles Tagged With: Appraiser

FHA Loan Rules For Appraisals: Appliances, Mechanical Systems In The Home

FHA Loan Rules For Appraisals: Appliances, Mechanical Systems In The Home

HUD 4000.1, the FHA Single-Family Loan Handbook, has a detailed section about FHA loan appraisal requirements. First-time home buyers may not realize that certain details of the home must meet FHA requirements such as the condition of appliances and the efficiency of the mechanical systems in the home such as central air conditioning or hot water heaters. HUD 4000.1 lists FHA requirements for appliances in the appraisal, stating that the FHA appraiser is required to review the home’s stove, fridge, washing machine, etc. if those appliances are being left in the home for the new owner. “Appliances that are to remain and that contribute to the market value opinion must be operational. ” This section is discussing appraisals for existing construction homes, but the intent is clear; the condition of | more...

 
FHA Home loan appraisal rules

New Housing Appraisal Rules? Not So Fast, FHA Loans

If you haven’t paid attention to recent headlines in the mortgage finance sector, you may not be aware that starting October 9, 2019, some house sales priced at or below $400,000 no longer require an appraisal. That news has some house hunters and home sellers jumping for joy. At least at first. Since the mid 1990s, appraisals have not been required for each and every home sale. Homes priced at or below $250 thousand may or may not have required an appraisal (more on that below), but over time, the numbers have shown that home prices have gone up significantly since then. Hence the move to change the appraisal threshold. The FDIC, in partnership with two other government agencies issued the proposal to increase the appraisal limit, the rule was | more...

 
FHA Loans For Buying, Building, Or Assembling A Home

FHA Loan Appraisals: Different Rules For Different Homes

FHA loan appraisals have different standards depending on the type of property you wish to buy. That doesn’t mean that some homes get favorable treatment in the appraisal process than others. What it does mean is that some properties have unique issues. For example, an appraisal for an FHA condo won’t be the same as for a manufactured home. One reason? Manufactured homes do not start off with permanent foundations, and having one is a requirement. A condo unit does not face such problems, so there is a specific appraisal requirement for manufactured housing that such homes be affixed to a permanent foundation that meets FHA and federal standards. A condo unit is already on a foundation, so the requirements there have more to do with the state of the | more...

 
Why Did My Mortgage Payment Increase?

FHA Home Loan Questions: Appraisals

Do you have questions about the FHA appraisal process? Many do and it’s no surprise why-the appraisal is the process that determines whether the home you want to buy meets minimum FHA standards or not. Here are some common appraisal questions and answers you should know before you get to that part of the home loan process. Whether you are a first-time home buyer applying for your first FHA mortgage or an experienced house hunter returning to the FHA loan program to buy a new primary residence, these questions are important. Who Is Responsible For Ordering The FHA Appraisal? The lender. The borrower does not initiate the appraisal process or select the appraiser. Who Pays For The Appraisal? The borrower is responsible for paying the cost of the FHA appraisal | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

FHA Appraisal Standards: What You Need To Know

A recent press release by HUD applauds new lead paint hazard requirements issued by the Environmental Protection Agency. Those standards include a more strict requirement for lead levels in certain homes and “child-occupied facilities”. According to a press release on the HUD official site, “Since the 1970s, the United States has made tremendous progress in lowering children’s blood lead levels. In 2001, EPA set standards for lead in dust for floors and windowsills in housing, however since that time, the best available science has evolved to indicate human health effects at lower blood lead levels than previously analyzed.” The new rules don’t necessarily affect FHA appraisal guidelines with specific changes-FHA loan rules address lead paint issues, generally requiring abatement of lead-based paint in homes older than 1978 where there is | more...

 
Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

FHA 203(k) mortgages are different than a typical home loan for a new or existing construction home. These loans allow you to buy and renovate a property that would not necessarily meet FHA loan standards as-is. These loans are often called fixer-upper loans, rehab loans, etc. FHA rehab loans are available as both new purchase loans and refinance loans, you can use the loan for a property you already own or to buy a fixer-upper to begin working on. Rehab loans should not be confused with FHA Construction loans, construction-to-permanent mortgages sometimes referred to as FHA One-Time Close mortgages. The two types of loans can be similar in some respects, including the FHA minimum standards and construction requirements where the approved renovation work is concerned. And yes, the work you | more...

 
FHA Appraisal Rules You Need To Know

FHA Appraisal Rules You Need To Know

Are you a first-time home buyer? Are you looking into your FHA home loan options and not sure what the appraisal process is all about? The FHA appraisal is a tool for the lender to determine the home’s fair market value and a way to make sure a property meets MINIMUM standards. No matter what you might hear (and some mistakenly call the appraisal an “inspection”) the appraisal will not tell you the true condition of the home. Even the FHA and HUD themselves warn borrowers to pay for the optional home inspection (which is technically not a requirement, but then again, neither is test-driving your car before you buy it). And what should borrowers know about the FHA appraisal process? The appraisal’s most important feature for some borrowers is | more...

 
Home Values Dropping: FHA Loan Rules You Should Know

Home Values Dropping: FHA Loan Rules You Should Know

Real estate values could be entering a new phase, if some real estate blogs are to be belived; a Zillow.com report notes that median home values declined a bit in the spring of 2019. A different online real estate publication notes, “Though values didn’t drop year-over-year, their growth rate to (sic) lag behind 2018’s number.” That information does not necessarily help or hurt a house hunter looking for an FHA mortgage and a home to buy at the moment, but there are some important FHA loan rules to remember that WILL help you in cases where property values or house prices are in a state of decline. Where are values going lower according to Zillow? How about San Francisco? Pittsburgh? Others named include Seattle, Los Angeles, and San Diego. You | more...

 
Home Loans After A Bankruptcy

Questions A First-Time Home Buyer Should Ask The Seller

First-time home buyers and those who have purchased a home before but haven’t had to explore housing markets in a while should make a list of questions to ask the seller of a home placed on the real estate market. Sometimes it’s not the answer to the questions as much as the way the seller answers those questions-your ability to ask important questions in those cases is important, but so is paying attention to how the questions get answered. For example, the question, “Has the roof ever been replaced or repaired?” may get you a direct answer; “No, nothing has ever gone wrong with the roof”. But if the seller hesitates or offers a less-than-forthcoming answer, such as, “I don’t remember anything going wrong with the roof” or “No, the | more...

 
Home Loan Credit Advice From Credit Bureaus

FHA Loan Appraisal Questions: Why Is Peeling Paint A Problem?

One common question about FHA appraisals involves the issue of peeling paint. This can be a problem for some homes, especially those built on or before the year 1978. Borrowers want to know why the appraiser reviewed the home (the appraisal is not a property inspection) and required a correction of a peeling paint issue as a condition of loan approval. The borrower’s question in these cases is normally a variation on, “It’s just a cosmetic issue, why is the appraiser making a big deal out of peeling paint?” Unfortunately, for homes (including condo units) built on or before 1978, peeling paint is not just a cosmetic problem due to the use of lead paint in those construction projects before it was recognized as a safety hazard. FHA home loan | more...