FHA loans are special in the fact they are backed by the government, and have lower credit score and down payment requirements. To qualify with an agency who provides this loan type, the home you wish to purchase must meet certain standards.
During this appraisal process, an FHA appraiser will come out to the property and evaluate its condition to determine if the property is a good investment.
Many assume an FHA appraisal is harder to get approved; however, requirements have relaxed in comparison to previous years.
In general, appraisers are there to make sure the sales price is fair in comparison to the loan amount. They examine the quality of the property to make sure there’s no health and safety hazards such as wiring and electrical problems along with other issues. As long as the home is up to code, you have a higher chance of approval.
Please note, low home appraisals may happen due to market conditions, but on average, they are almost equal in results in comparison to conventional loans. If you do get a low appraisal, you can renegotiate higher after an appeal or choose to opt for a different property.
Before getting to the FHA appraisal process, make sure the property you’re interested in meets FHA appraisal guidelines. This includes, but is not limited to:
With the right amount of research and working with your real estate agent, you can find a great home meeting FHA appraisal requirements.
I have had many years of experience listing and selling Real Estate between Boston and Worcester. I represent sellers, buyers, builders, landlords, and problem properties. Being in the businesses for many years has allowed me to build strong relationships with many local and national lenders. If you need someone to represent you, please give me a call
