Reverse Mortgage Appraisal
When using an FHA loan to purchase a house, an appraisal will need to be done before the loan can close. A home appraisal is an estimate of the current market value of a property. FHA Lenders use the appraisal to calculate the how much the house is worth. The FHA buyer will pay for the appraisal upfront before closing. The average FHA appraisal costs is $550.
Uniform Residential Appraisal Report (URAR). Main factors that affect the cost of an FHA home appraisal square footage of the home property type, location of the subject property, how much land is included in the property, homes with extensive damage or repairs the individual or company doing the appraisal What FHA Appraisers look at When buying a home using an FHA loan, you will be required to get an FHA appraisal. First, the home appraisal is ordered by the mortgage lender. Next, the appraiser will perform a basic inspection on the property to make sure it meets the HUD property standards for FHA loans.
FHA approved appraisals must pass the FHA property guidelines set by HUD. The FHA Home Appraisal Process Inspect the property’s interior and exterior structure and quality. Ensure lead-based paint is not present. Check for cracks, leaks, and damage to the exterior walls and ceilings in good condition without cracks or holes. Check quality of fixtures, plumbing, and appliances. Make note of any upgrades that may increase the value, ensure the landscape is in good condition Check central heating and cooling systems, take photos of the front, sides and back of the home. Along with photos of any upgrades that increase the home’s value. Photos showing the condition of the lot Include a copy of the location map.
The Housing and Urban Development, or HUD requires the appraiser to check for various health and safety items as well as quality construction items to ensure the property meets HUD’s minimum property requirements and meets the HUD Handbook 4150.2 for hazards and adverse conditions such as: FHA Reverse Mortgage Appraisal checklist Must be a complete marketable property Adequate heating system Clear of any lead based paints No exposed electric wiring Full exterior walls that are undamaged No hazards in the home Quality construction Proper drainage Quality roof not in need of repair Safe and public access to the home Safe drinking water Crawl spaces must have natural ventilation Gas, water, sewage, and electric utilities available.
FHA Reverse Mortgage Appraisal required: Ensure all appliances are operational Fully access the attic space if able to do so Check water heater functionality “Inspection” portion is not referred to as “observation” A roof that needs to be replaced within 2 years must be reported Analyze and report marketability of homes in Airport zones Income appraisal approach must be considered. (High priced homes in low income areas may have a lower market value) How is the appraised value of a home determined? A Reverse Mortgage Appraisal will determine the market value of a home by looking at comparable home sales in your area over the past 6 months. Next, they will compare the homes square footage, number of bedrooms and bathrooms, condition of the home, and any special features.
Please call Scott Underwood with any other Reverse Mortgage Appraisal questions at 205-908-2993. Covering Birmingham and Huntsvile, Alabama.