In 2015, FHA increased appraisal standards and requirements for a house to qualify for FHA financing. Assuming the house actually meets each of these standards below, these are the new comments I've added to my Baton Rouge FHA Home Appraisal Reports . As with any home purchase, new house or exiting house, I highly recommend a thorough home inspection!
INTENDED USE and INTENDED USER [Hdbk 4000.1 – Page 497] “The intended use of the appraisal is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage (24 CFR § 200.145(b)). FHA and the Mortgagee are the intended users of the appraisal report.
The FHA Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only.
Property meets HUD guidelines as per HUD Handbook 4000.1 and Appraisal Report & Data Delivery Guide. The signing Appraiser who completed this appraisal report is currently an approved FHA roster Appraiser.
One (1) Year Sales History For Comps: A one-year prior sales or transfer history for the comparable sales and listings utilized herein has been completed per newest Data Delivery Guideline, page 42.
Cabinets and Appliances: All built-in (Real Property) cabinets and appliances (Dishwasher and/or Range/Oven and/or Disposal and/or Microwave) are present and operational.
Attic Inspection: A head-and-shoulders inspection of the attic was performed (See Photo) and the subject's attic meets minimum FHA guidelines. Attic is insulated with no evidence of water or moisture damage.
Roof: All areas of the roof were observable. The roof does have greater than two years of remaining life.
This roof below does not meet FHA standards due to torn shingles on edges
Mechanical Systems: Inspection indicated no observable deficiencies with regard to plumbing, electrical, heating/cooling systems.
Plumbing system was operated and observed and that no foul odors were emitted and that sufficient pressure was present while running faucets and flushing toilet.
Electrical Box: Inspection of the electrical box was completed; no evidence of frayed or exposed wiring was noted.
Water Heater: Water heater has a temperature and pressure relief valve with piping to safely divert escaping steam or hot water.
Heat: All habitable rooms have a heat source and adequate ventilation.
Condition: Subject property is safe, sound and secure. Smoke Detectors: Subject property has smoke detectors in working condition.
Energy Efficient Items: Subject property does not have any special energy efficient items.
Soil Conditions: observable soil conditions, observable grade and observable site conditions including drainage appeared to be normal.
Crawl Space Inspection: The subject's crawl space is; free of trash, debris and vermin, properly vented, not excessively damp, no water pooling was observed, has vertical clearance of 18 inches between grade and the bottom of the floor joists.
As with any home purchase, new house or exiting house, I highly recommend a thorough home inspection!