Top Five Changes You Need to Know About FHA Appraisals

Realtors and homeowners, here is a list of the top five changes to the FHA appraisal guidelines.  If you plan on obtaining FHA financing, or have a buyer/seller you’re currently working with, you need to know this!  The list is not exhaustive, but is simply meant to outline a few of the more significant changes to what we observe during an FHA Appraisal, especially as it relates to buyers, sellers, and agents in the market.

1. Built-in cabinets and appliances must be operational
2. All rooms must be observed and photographed
3. All areas of the crawl space must be observed
4. All areas of the attic must be observed
5. The cutoff date for lead-based paint has been adjusted slightly to December 31, 1978

FHA still has as its main concern, the safety, soundness, and security of the property.  Additionally, all utilities must be on and operating, so we can observe & analyze the heating, electrical, and plumbing systems.  For a full list of items an appraiser observes and analyzes during an FHA appraisal, drop us a line!  Or, for your reading pleasure (all 856 pages worth), the new HUD Handbook 4000.1 is here.