FHA loans are special in the fact they are backed by the government, and have lower credit score and down payment requirements. To qualify with an agency who provides this loan type, the home you wish to purchase must meet certain standards.
During this appraisal process, an FHA appraiser will come out to the property and evaluate its condition to determine if the property is a good investment.
Many assume an FHA appraisal is harder to get approved; however, requirements have relaxed in comparison to previous years.
In general, appraisers are there to make sure the sales price is fair in comparison to the loan amount. They examine the quality of the property to make sure there’s no health and safety hazards such as wiring and electrical problems along with other issues. As long as the home is up to code, you have a higher chance of approval.
Please note, low home appraisals may happen due to market conditions, but on average, they are almost equal in results in comparison to conventional loans. If you do get a low appraisal, you can renegotiate higher after an appeal or choose to opt for a different property.
Before getting to the FHA appraisal process, make sure the property you’re interested in meets FHA appraisal guidelines. This includes, but is not limited to:
With the right amount of research and working with your real estate agent, you can find a great home meeting FHA appraisal requirements.
Originally from upstate New York, I moved to Park City soon after college to spread my wings and explore the western United States, taking full advantage of the world class golf courses, beautiful mountains and the greatest snow on earth. 20 years later I am grateful to still call Park City home.
Client experience is my #1 objective. I have a passion for helping people realize their perfect Park City experience. My 22 years of resort management provided me with tremendous opportunity to work with so many different people from all over the world, delivering the services and experiences they desired and facilitating them to take advantage of all Park City has to offer.
Having played, worked and raised three children in Park City, my knowledge runs deep of the community and its surrounding areas, and all they have to offer. I am confident I can help you to find your next dream home in this wonderful community.
