Appraisal overview for FHA loans in Henderson, Nevada as of November 13, 2012 is the topic of this blog entry. Courtesy of Kari Phillips, Senior Loan Officer, MLS# 25126 NMLS#309701 at Southern Fidelity Mortgage. Various loans such as; Conventional, FHA, and VA Loans have different standards that the appraiser must consider when preparing an appraisal report for a home borrower in Las Vegas or Henderson, Nevada. 
Conventional APPRAISALS
- Anything that is deemed not safe, sound and sanitary that is a concern of all appraisals.
- Property must be livable.
- Property has to be livable without any major work being required
- No missing kitchen cabinets, must have plumbing fixtures, unfinished bathrooms must be completed.
- No major holes in the walls, no broken windows; no carpet or vinyl flooring that is coming up or missing; missing tiles, and no bare floors.
- Straps must be on the hot water heater.
- If property has a pool, pool must be filled and in working order with all parts.
- Any water damage has to be repaired and/or inspected for mold depending on the extent of the damage.
- Most lenders will set forth additional guidelines that each require the appraisal to support.
FHA APPRAISALS
FHA appraisals starts with a conventional appraisal, and then adds additional requirements designed to insure that any major repairs that will be needed within two years are identified and completed before close of escrow. This does not replace the need for a home inspection as the appraiser does not look for hidden problems or go into the level of detail of a licensed home inspector.
FHA appraisals are good for four months and stay with the house regardless of the lender or the borrower. There is no reassignment necessary for an FHA appraisal.
The appraiser must be on the FHA roster and an FHA case number must be issued BEFORE the appraisal can be scheduled.
If a property already has a conventional appraisal it CAN NOT be simply “converted” to an FHA appraisal without a case number and an inspection for the extra FHA items called out below, most of which are not included in a conventional appraisal.
EXTRA CHECKS RQUIRED FOR AN FHA APPRAISAL
- Identify any chipping, peeling or cracked lead-based paint – interior and exterior.
- Verify there are no issues with water damage or drainage.
- Insure property ingress and egress (18”) from all buildings to the lot line.
- Test for a properly working heater and, if present, air conditioner.
- Test for adequate water pressure and no water leaks.
- Validate every bedroom has exterior access – security bars must have safety releases.
- Verify a minimum 60 amp electric box.
- Test for working electric outlets in every room.
- Identify any exposed wiring or missing electric box cover plats
- Verify roof vents are screened and a maximum of three layers of roofing material.
- Complete a head and should inspection of attic and crawl space.
The general rule is that inside issues must be fixed or replaced while outside items must be fixed or removed. Central air is considered an inside item.
The three FHA hot buttons are lead-based paint in pre-1978 properties, water damage, or poor drainage, and egress/ingress. The most common issue with the latter is properties that were built with garages on the lot line in which the homeowner has no access to maintain (paint) the side of their garage. Sometimes an easement must be granted from the neighboring property to allow access for maintenance.
At the time of writing this blog post there is 295 that single family homes eligible for FHA loans in Henderson, Nevada listed at or below $400,000 and approximately 1,358 eligible single family homes FHA loans in Las Vegas, Nevada.
Additional information may be found at below websites:
FHA – http://portal.hud.gov/hudportal/documents/huddoc?id=05-34ml.doc
HUD – http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ref/chap1
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