FHA Housing Loan – Is FHA Appraiser Also An Inspector?
FHA Housing Loan – Is FHA Appraiser Also An Inspector?
If you are buying a home or refinancing a mortgage using a FHA Housing Loan you may think you don’t need an inspection because that is what the FHA Appraiser will do. That is a misconception believed by a lot of people. A FHA Appraiser job is not to do a full inspection of the property. His job is to establish what the current market value of the property.
Most Realtors will encourage you to get a full house inspection of the home you are buying, don’t rely on the FHA Appraiser report.
The author of the article below will discuss what the FHA Appraiser will normally do during an appraisal of the property.
Don’t Confuse FHA Appraiser For An Inspector
If I had a nickel for the number of times I heard a seller or a homeowner looking to refinance express some form of fear about the FHA appraiser coming in and asking him to rebuild his house, I’d be less broke than I am now.
The first thing to understand about the appraiser is he or she does not work for FHA and is not there on some detailed property inspection to force you to uphold the greatest structural integrity your home could muster.
The appraiser is an independent business in business to do one thing…. Appraise a property for value so the lender has a basis to make a loan to the borrower. This is the first and most important thing they are there to do.
That being the case their time must be spent conducting this business. When they come to the house you will notice them measuring. This is to determine livable square footage. This is the most important thing they can do to compare your home to the like-kind homes.
They will also take a look around your home for upgrades. Naturally, when comparing one home to another this is important as it goes to value.
What you won’t find him doing is checking faucets, foundation integrity, whether lights work or not, or if the air conditioning is working at its peak level.
That being said FHA appraiser have to call out certain items if they are apparent. FHA has certain rules to follow and the appraiser must adhere to these rules. The thing is these items would be blatantly apparent. If you have an obvious need for a new roof that would get called out.
I had a borrower with a home with a major obvious foundational issue. That was called out. Beyond items like this and a few minor ones like peeling paint, the FHA appraiser is there to do the job of appraising for value. FHA is a great loan today and more and more sellers and borrowers will be using this loan. It should be embraced.
By: Matt Borkowski
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