An FHA appraisal is required on any purchase or refinance financed with a loan insured by the Federal Housing Administration. It serves two purposes: it establishes the property's market value for the loan, and it documents that the property meets HUD's minimum property requirements for health, safety, and structural soundness. The appraisal must be completed by a certified appraiser who is on the FHA appraiser roster, and it is ordered by the lender through its normal appraisal process.
What an FHA appraisal involves
In addition to the standard valuation analysis - inspection, comparable sales research, and a reconciled value opinion - the FHA appraiser observes and reports property conditions that fall under HUD's requirements. These include the condition of the roof, mechanical systems, foundation, and electrical service, the presence of peeling paint in older homes, drainage around the foundation, and safe access to the attic and crawl space, among others. Conditions that do not meet the requirements are reported to the lender, and repairs may be required before the loan can close. Buyers and sellers in an FHA transaction should be aware that these condition requirements are part of the program, not the appraiser's personal judgment.
FHA appraisals with Sanicola Appraisals
Peter Sanicola of Sanicola Appraisals, LLC is a certified residential appraiser on the FHA roster, providing FHA appraisals for lenders and their management companies throughout the service area: Washington County and Frederick County, Maryland; Berkeley County and Jefferson County, West Virginia. Reports are prepared in compliance with USPAP and current HUD/FHA appraisal protocol.
Questions about an FHA appraisal
FHA appraisal orders are placed by your lender. If you are a lender, agent, buyer, or seller with questions about how the FHA appraisal process works, call Sanicola Appraisals, LLC at (240) 217-7778.