Lake Lanier Blog

FHA Loans and What homes Qualify for FHA Financing. What Appraisers Look For.
April 1st, 2014 3:45 PM

You get the listing and now it is under contract and the buyer is going with an FHA loan.....You wonder will the home qualify for FHA financing?

1. First things first: When you take that listing and there is any chance it might go FHA, take this check list along with you to make sure you are covered. Thank you to the inspector on the list who put this together. SOME of these items are NO longer required by FHA, but if the home passes the "Muster" on this check list you will have NO surprises come appraisal time!

2. Below is a revised outline of requirements from FHA. You can see that HUD has relaxed many of their requirements. 

The main things to consider when you look at the property are the 3 S's

Required repairs are limited to those necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants

  • Safety: protect the health and safety of the occupants
  • Security: protect the security of the property (security for the FHA insured mortgage-not security of the home)
  • Soundness: correct physical deficiencies or conditions affecting structural integrity
This all boils down to SALABILITY of the home. If you are looking at a home and certain items stand out to YOU, there is a good chance they will to the Appraiser and may be Conditioned by the Appraiser for further investigation or inspection. The Loan Underwriter will have final call on these items that are conditioned by the Appraiser. 

This essentially covers FHA Appraisal requirements. Of course for ALL Loans not just FHA, ALL utilities must be on INTO The home prior to the Appraiser inspecting the property or it will be conditioned in the appraisal report. 




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Posted by Mary Thompson on April 1st, 2014 3:45 PMPost a Comment

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