Posted to: First Time Home Buyers

FHA Appraisal Facts

Are you going to be obtaining an FHA loan to do your next home purchase?  If so, read below.

An FHA appraisal is simply a conventional appraisal but with more detail paid to, and more documentation of, the subject property’s characteristics, overall functionality, and condition (noting any deferred maintenance).

An FHA appraiser will actually perform what amounts to a smaller, more basic version of an inspection done by a licensed home inspector. The appraiser is required to test the basic utilities and overall functionality of the residence, which includes testing faucets in each room that have running water, briefly turning on lights in each room, and otherwise ensuring the overall electrical, heating/cooling, and plumbing systems are in working order.

Below is only a sample of the list of the required components of a home inspection:

Electrical
o All outlets and lights must work
o No frayed electrical wires
o Heating and cooling systems must be functional
o All rooms must be heated
Plumbing
o Must be adequate flow when several fixtures open at once and toilet flushed
o No leaks of anykind
o There must be hot water

Why do I tell you this?  Because if you are looking at a house that doesn’t meet these requirements, and you will be getting an FHA loan, move on to the next house.

Questions?  Call Chet Gohd, RPM Mortgage, 510-647-5320