To pass an FHA inspection, however, your foundation must be free of significant cracks as well as ongoing water damage or evidence thereof. FHA inspectors look up as well as down. Your attic and roof need to be in good repair. An FHA inspection will require that you fix any water damage or holes in the roof.
What does FHA appraiser look for?
Site visit: FHA appraisers visit homes in person to write notes and take photos. They check for the structures quality, the interior and exterior condition, the state of fixtures and systems and the condition of the lot.
Why would FHA not approve a home?
Loan Limits A house that is too expensive cannot qualify for an FHA loan. HUD sets loan limits annually, which vary by area and number of units . The FHA can only insure an amount up to this limit. A high-end home, with the standard FHA down payment of 3.5 percent, might have a loan amount that exceeds the limit.
What kind of repairs does FHA require?
The FHA does not require the repair of cosmetic or minor defects, deferred maintenance, and normal wear if they do not affect the safety, security, or soundness of the home. Workarounds for meeting the standards include having the seller make repairs themselves before selling the property.
What will fail an FHA appraisal?
This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.
Are FHA appraisals strict?
The FHA Appraisal As such, FHA appraisals are usually more strict than conventional appraisals. To qualify for an FHA loan, the appraisal must show: The roof is in good repair with no work needed for two years.
How tough are FHA appraisals?
FHA mortgage appraisals are more rigorous than standard home appraisals. Whether you're looking at refinancing to an FHA loan, buying a house with an FHA loan or even selling to someone who will be using an FHA loan to fund their home purchase, you'll want to understand what FHA appraisals entail.
Do FHA appraisals come in low?
FHA loan rules require the lender to set the loan amount based on either the appraised value of the home or the asking price-whichever of those two numbers is the lower amount.
Are conventional appraisals higher than FHA appraisals?
Once you apply for an FHA loan, one of the loan requirements is that the home appraisal is done at a higher standard as compared to the conventional appraisal. The FHA loan has a minimum down payment requirement but conventional loan has a higher down payment requirement despite its lower standards.
Do FHA appraisals come in lower?
FHA loan rules require the lender to set the loan amount based on either the appraised value of the home or the asking price-whichever of those two numbers is the lower amount. The difference between the asking price and the sales price can't be rolled into the loan amount.