At Transcend Appraisals, our certified residential appraisers are on the FHA Roster of approved residential appraisers. We're qualified and approved to do appraisals for FHA insured loans. We're trained and understand the rules and procedures in FHA's guidance and policy documents.

 

The appraisal is the lender's tool for making a determination if the property meets the Federal Housing Administration’s (FHA) minimum property requirements for an FHA insured mortgage. FHA is part of the Dept. of Housing and Urban Development. The FHA Valuation Protocol, which delineates Residential appraisal requirements, is found in Appendix D of the FHA 4150.2 Handbook.

 

The FHA appraisal process has traditionally asked more of the appraiser than is asked in the completion of an inspection for a conventional appraisal. The 139-page Valuation protocol identifies line by line what the expectations are regarding the inspection. One of the major differences between a regular inspection and an FHA inspection is that a property inspection will involve an in-depth visual inspection of all areas of the subject property including the attic. It is always advisable for the lender to inform the homeowner of this requirement. The appraiser MUST inspect the attic even if access is available only through a scuttle. In addition, another major difference from a conventional loan appraisal is that in the performance of an FHA appraisal the appraiser MUST report any deficiencies noted during the inspection. Required FHA repairs (deficiencies) are those that impact the Safety of the occupants; the Security of the property or the Soundness of the structure. In cases where such items are identified, it is the appraiser’s responsibility to make the value opinion of the property “subject to” the repair of the item. Such appraisals that mandate a repair item will then require a compliance inspection to ensure the deficiency has been corrected. While potential repairs do cause a delay in the transaction they are essential to eliminate conditions that threaten the physical security of the property. FHA appraisals, however, are “no guarantee” that the property is free from defects. The appraisal only establishes the value of the property for mortgage insurance purposes. In fact, Buyers are generally encouraged to engage a qualified home inspector to obtain a more detailed physical (rather than visual) property inspection.

 

Our clients are very important to us. please feel free to contact us by telephone, email, or below with any appraisal questions.