FHA Appraisal Inspections – What the Appraiser Looks for
When an FHA or USDA loan is being used, the appraiser has two objectives. The Department of Housing and Urban Development (HUD) requires them to determine the current market value, as with any appraisal…
They also require a property inspection (Not to be confused with a Home Inspection by a professional home inspector), to make sure the home meets HUD’s minimum standards for health and safety.
Cosmetic items, like stained carpeting or walls are ok.
An Appraiser looks for what we call, “The 3 S’s”
Safety is pretty obvious. Making sure the house is safe for day to day living.
Security isn’t door locks, it’s HUD’s security in the loan. It’s the home’s ability to serve as collateral for the loan. Is the house on the edge a cliff that could give way someday?
Soundness relates to the structure and structural components of the dwelling. They include not only the foundation but also other elements such as floor, wall and roof framing systems.
If any of these issues are out of compliance, HUD requires the Appraiser to call them out in the appraisal and to have them corrected. The Appraiser will re-inspect the property, at an additional fee, to make sure the issues have been remedied.
Here is a checklist of the most common items Apple Appraisal, Inc. sees. If these are addressed BEFORE the appraisal inspection, re-inspection fees and delays in closing can be avoided.
- Clear Access to The Crawlspace and Attic
- Peeling paint on homes built before 1978
- Broken Windows
- Exposed Electrical Wiring
- Utilities Must be on and available for testing
- Gutters and Downspouts are intact and drain water away from the house
- Electrical outlets within 4’ of a water source are GFI type
- All Appliances are Working
- Windows, Doors and locking mechanisms are working
- Smoke and CO Detectors installed to code
Making sure the above items are fixed, on and working will make the Appraisal side of the transaction, go smoother.