Comments on: FHA Appraisal Issues

By: Jen

Jen — Fri, 15 Jul 2011 04:07:02 +0000

Hello my name is Jen and I am in the process of getting a FHA 203(k) loan for a home in Pennsylvania and we have already had the home inspection done and it didn't go that well. I was just wondering if there is anyone that can let me know what do the appraisers look for. I am working with the sellers to get everything fixed before the appraisal but some of the issues found during the inspection just seem like a joke. For example, the wax ring on the toilet and caulking around the tub. I just want to know what would and wouldn't need to be fixed before the appraiser goes in and we lose the loan and house. Please help me I need to know what to do so we don't lose this house, I really don't have time to go back to square one. I am living in Michigan right now homeless (staying with family) with my two sons and my husband is in Pennsylvania staying with family. I just want this appraisal process to go as smooth as possible. So my family can have a house together.

Thank you so much
Jen
Please email me with any info on appraisals anyone can dig up
jen_pre@live.com

By: TJ

TJ — Tue, 12 Jul 2011 12:34:59 +0000

I'm a seller and the buyer has been trying to get an FHA loan for months. First, the FHA appraiser came back with a laundry list of fixes. Foundation, electrical, plumbing….you name it, they wanted something done to it……and the house is a good, solid one. Thousands of dollars and work later, everything was submitted to FHA's appraiser again. Guess what. A new laundry list which included points like: you did not use a licensed structural engineer. Ha! We did, and the licensed structural engineer even did work for other FHA appraisals and received approval! Instead of just certain electrical repairs, FHA is calling for a full house electrical inspection and repair. I could go on and on.

The bottom line is that I am tired to trying to satisfy FHA. I will not be selling to anyone who hopes to obtain an FHA loan.

FHA, if you're listening, you are CAUSING our housing crisis. You are keeping good buyers from purchasing good houses. WAKE UP!

By: Ben Goheen

Ben Goheen — Tue, 28 Sep 2010 00:55:33 +0000

Dave: FHA guidelines don’t state that a deck is required. I understand your question and it seems like there should be one if there is a patio door. However, often times in my area new homes are built without one to save money and the homeowner will build it later if they wish. The stop in the door track prohibits a person from opening the door and falling 10-15 feet to the ground, which is a general safety issue.

I just inspected a home today for an FHA loan where there was an upper lever door with a huge drop: twitpic.com/2sngdn

By: Dave Fife

Dave Fife — Mon, 27 Sep 2010 07:24:39 +0000

So in your article example of the patio block stop, does this disqualify it for an FHA loan, if it is impossible to open that patio door, while the block stop is in place? It seems that the missing balcony/deck interferes with the functional usability of the property. To me it would seem intuitive that the home missing the rear deck would be ineligible for FHA.

By: AgentGenius

AgentGenius — Thu, 12 Aug 2010 01:19:52 +0000

#agnow If you even need to ask then you should, and you should anyway even if you didn't ask. Inspections are desig... http://bit.ly/bzVlao

By: AgentGenius

AgentGenius — Thu, 12 Aug 2010 00:55:49 +0000

#agnow i am currently looking at a home that appears to have about a three inch water mark in the upstairs hallway ... http://bit.ly/bzVlao

By: Benn Rosales

Benn Rosales — Wed, 11 Aug 2010 21:19:50 +0000

If you even need to ask then you should, and you should anyway even if you didn’t ask. Inspections are designed to illuminate problems before risk is taken by all parties, including FHA.

By: Marc

Marc — Wed, 11 Aug 2010 20:43:20 +0000

i am currently looking at a home that appears to have about a three inch water mark in the upstairs hallway but the owner of the home no longer lives in the country. I will be going with an fha loan but im not sure how picky they will be with this. the owner stated he will not be returning and will not be able to fix anything. I cannot see any visable damage in the attic or anywhere around else. Does anyone think its even worth spending the money on the inspection if im going with a fha loan?

By: AgentGenius

AgentGenius — Sat, 13 Mar 2010 08:36:57 +0000

#agnow I'm pretty sure appraisers are evil (sorry, just read Gwen's last article and she got me in this mood). I do... http://bit.ly/bzVlao

By: Nashville Grant

Nashville Grant — Sat, 13 Mar 2010 03:36:56 +0000

I’m pretty sure appraisers are evil (sorry, just read Gwen’s last article and she got me in this mood). I do have a real question: do appraisers usually use the cost basis method when appraising new construction short sales? Seemed unusual to me.

By: Jim S

Jim S — Fri, 24 Jul 2009 21:14:18 +0000

Hi,
Another quick question. It looks the deal to sell my home may fall through because, while my home appraised well 3 months ago when it went on sale, now that I have a potential buyer, the FHA appraisal is looking at what are now the most recent sales in my area. Unfortunately, all recent sales have been foreclosures. So it looks like the comps are all well below the agreed-upon price for my home. The buyer can’t scrape together more $ for the purchase, though he and his realtor agree that my house is indeed worth the price they are offering. Any suggestions? It seems like all those who foreclosed in my area are penalizing me for attempting to unload my house the traditional way.

By: AgentGenius

AgentGenius — Sat, 11 Jul 2009 03:49:09 +0000

#agnow Roger - the potential buyer or their agent might tell you the value out of common courtesy. However, they h... http://cli.gs/uRLnm

By: AgentGenius

AgentGenius — Sat, 11 Jul 2009 03:12:26 +0000

#agnow Hi I had a quick question. One of my clients had a buyer who was using the FHA loan/appriaser. The apprais... http://cli.gs/UPXnD

By: Ben Goheen

Ben Goheen — Fri, 10 Jul 2009 23:49:05 +0000

Roger – the potential buyer or their agent might tell you the value out of common courtesy. However, they have absolutely no obligation to letting you know what the appraised value was. I wouldn’t even try asking the appraiser – their client is the lender, not you.

By: roger mathew

roger mathew — Fri, 10 Jul 2009 22:08:45 +0000

Hi
I had a quick question. One of my clients had a buyer who was using the FHA loan/appriaser. The appraisal came lower than the price and deal fell through. The buyer never communicated the appraised value and just walked off. Now, the seller wants to know the amount at which it was appraised so they can adjust their price. My question would be that is the seller entitle to a copy of the appraisal? How can go about getting a copy and how long does it take?

By: AgentGenius

AgentGenius — Tue, 30 Jun 2009 19:17:22 +0000

#agnow FHA Appraisal Issues | Real Estate Opinion MAG - AgentGenius http://tinyurl.com/lxaons http://cli.gs/AjXbj

By: SREMI (Steve Remillong)

SREMI (Steve Remillong) — Tue, 30 Jun 2009 19:10:08 +0000

FHA Appraisal Issues | Real Estate Opinion MAG – AgentGenius http://tinyurl.com/lxaons

By: Steve Remillong

Steve Remillong — Tue, 30 Jun 2009 19:10:08 +0000

FHA Appraisal Issues | Real Estate Opinion MAG - AgentGenius http://tinyurl.com/lxaons

By: Bridget Magnus » Friday Figures for 6/19/2009

Bridget Magnus » Friday Figures for 6/19/2009 — Fri, 19 Jun 2009 16:33:31 +0000

[...] for 90 days (unless their lease ends before then). And one last thing, FHA borrowers need to be aware of the rules about property condition, particularly when purchasing foreclosed or short sale properties (remember, buyers have the legal [...]

By: Joespake

Joespake — Fri, 19 Jun 2009 14:07:36 +0000

The median price in my market falls well below the FHA limit, so there are numerous FHA financed transactions here. If banks and investors would put a little money into their foreclosed properties to pass an FHA appraisal, it would stimulate the market. The position of the banks: [with arms folded] “as is, where is” is just not practical with the increasing numbers of FHA buyers out there. Many of the REO properties I show could be brought up to FHA standards for a few hundred dollars.