What Is An FHA Appraisal And Why Does It Matter To You?

What Is An FHA Appraisal And Why Does It Matter To You?

FHA stands for the Federal Housing Administration and is one of the government agencies that offers to help finance and guarantee certain types of home loans. The most common benefit of the FHA type of home loan is their low down payment programs. An FHA loan may only require a 3% down payment on a home where a conventional type home loan may require, 5%, 10%, 20% or more as a down payment on the home you wish to buy. Since FHA is providing the guarantees on the home loan they want to make very sure that the home you buy is not only a good and safe investment for you, they want to make sure that the home itself is safe for you to live in.

​FHA has typically higher standards and requirements for the real estate appraisal, as well as the real estate appraiser who gets selected to appraise the home you are buying. The home appraiser who is selected for an FHA type home appraisal has been specially trained above the standards for conventional type home loans and properties. The FHA approved appraiser has had to go through extensive training and be approved by the Department of Housing and Urban Development (HUD) to be on the list of approved appraisers eligible and qualified to appraise homes like the one you may buy. The extra training and oversight of FHA approved real estate appraisers is designed so that the appraiser who visits the home you are buying, or may currently own, knows exactly what to look for to insure the health and safety of the precious people who are going to live there.

Real Value Appraisal  is on the top of the FHA Roster of approved residential real estate appraisers.  We're qualifie,approved, and have extensive experience in completing appraisals for FHA insured loans. Real Value Appraisers have  successfully completed 1000's FHA appraisals over an almost two decade period. We're expertly trained and understand the rules and procedures in FHA's guidance and policy documents and know what to look for to make sure the home you are buying or selling is safe and there are no hazards that may lead to harm, damage, or heartache in the future. 

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans. Remember, the FHA is different from the VA appraiser panel in that the lender can choose the appraiser. 

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.