(West Lafayette, IN USA)
Regarding Overcoming FHA Appraisals: Dear Kate, I am trying to buy a foreclosure and I need to use a FHA loan because of down payment requirements. I do not want to lose the deal because of the appraisal.
Can you give me information about how strict FHA appraisals are and what appraisers look for. The house needs cosmetic work and has no appliances. It is in a beautiful neighborhood with houses surrounding it listed for $150,000 or more.
I am purchasing this house for $79,000 but like I said, there is work to be done inside. Any information would be greatly appreciated. Jason
Kate Answers: Overcoming FHA Appraisals
Dealing with FHA appraisals, I found I could depend on a surprise or two. Results vary among appraisers and even from one region to the next. FHA may develop an appraisal hot spot in one type of market that carries little emphasis in later years.
But as with any type of appraisal, the appraiser is going to analyze the remaining life of the roof and determine whether plumbing, electrical and heating systems are in working order. Any factors creating unsafe living conditions are noted such as missing stair railings or broken window panes.
As a home buyer, little of this is under your control because most likely you don't have access to the house to make repairs. Even if you did, you would be investing in a property that is not yet yours. If the transaction did not close, you would not get your cash back.
But you can still be proactive! All home buyers need a dream team who watches out for their best interests. To form your own dream team, take the first step with Discover The Magic - Buying A House
and continue through my guide to learn why surrounding yourself with professionals is the secret to successful home buying.
I would be remiss if I didn't mention that FHA appraisals are meant to protect the bank, not you! Take the first step in protecting yourself by reading Why FHA Appraisal Is Not Enough
if you're wondering why you need to pay for both an appraisal and a home inspection!
How To Buy Foreclosures
One last thing, Jason, I'd like to share with you. Today's home buyers are asking for quality real estate data and investing information since the majority of houses for sale are related to foreclosure and short-sale.
Learn More About Buying a Home in Foreclosure
The first step to finding your dream house is to contact a real estate agent and begin forming a dream team of real estate pros who will work on your behalf.
Here's how. Go to Home Buying Dream Team to learn the role of various RE professionals.
PS If you still have questions regarding FHA Appraisals, write me at Ask Kate where every question is a good question.
Want to see what others are asking and I'm answering? Years in the making, go to Answers by Kate - How To Buy A House and bookmark it to your favorites so you can easily return in the future.
Return from Overcoming FHA Appraisals to Get-Your-Best-Mortgage-Rate
Help Spread The Word
Please come back and visit often. Help me spread the word by sharing FHA Appraisals
with your friends using these easy social bookmarking buttons. I depend on word of mouth!