"Most buyers will get a standard home inspection to understand a home's condition and uncover any underlying problems. But an FHA appraisal inspection serves two distinct purposes, meant to protect both the lender and future occupant: It verifies the home's value and confirms the property meets federal Housing and Development (HUD) Minimum Property Requirements (MPRs). In other words, if you're buying with an FHA loan, the home must be safe, structurally sound, and free of hazards that could affect an occupant's health."
"Before jumping into FHA appraisal red flags, it's helpful to understand how the process itself works. The FHA inspection goes hand-in-hand with the FHA appraisal, taking place when an FHA-approved appraiser visits the property. During this visit, the appraiser is verifying two things: 1. The home's fair market value They assess comparable sales, the home and property condition, and features to make sure the lender isn't financing more than what the home is worth."
FHA appraisals verify both a home's fair market value and compliance with HUD Minimum Property Requirements (MPRs). Appraisers assess comparable sales, property condition, and safety features to ensure lenders are not financing more than a property is worth. Inspectors check for safety hazards like exposed wiring, missing railings, and broken windows, as well as structural issues such as major foundation problems or wood rot. Homes must be safe, structurally sound, and free of health hazards for occupants. If serious deficiencies exist, lenders typically require repairs or corrective plans before closing; minor cosmetic issues usually do not block approval.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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