Market research: Appraisers research selling prices for comparable homes by reviewing homes that closed in the same general area and typically closed during the past six months.They check for the structures quality, the interior and exterior condition, the state of fixtures and systems and the condition of the lot. Site visit: FHA appraisers visit homes in person to write notes and take photos.Department of Housing and Urban Development (HUD).

This calculation helps lenders from loaning out more than they are willing to risk and can help limit buyers from borrowing more than the home is worth.Īn FHA appraisal also confirms that the property meets the minimum standards set by the U.S. Lenders use the market value from the appraisal to determine the loan-to-value ratio of your mortgage. An appraisal is a standard requirement for most mortgages and refinances. Since a third party performs the appraisal, the market value is not influenced by the buyer or the seller.

What is an FHA home appraisal?Ī home appraisal is an estimate of the market value of a property. Here's almost everything you need to know to get started. If you're planning to get a mortgage backed by the Federal Housing Administration (FHA), the house you want to buy requires an appraisal that meets FHA standards. When you buy a house, you have several tasks to focus on, from home inspections to mortgage paperwork.

Va home loan appraisal checklist