The FHA Loan Appraisal Process

Once your offer to purchase has been accepted and inspections completed, you will have an FHA loan appraisal. HUD requires appraisals for any homes being insured using FHA loans. The appraisal is done to ensure that FHA minimum requirements have been met in accordance with the program guidelines. The lender conducts this appraisal to determine the risk associated with the loan as well as to determine the safety of the home. Remember, in order to qualify for an FHA loan, the home has to meet certain criteria.


When conducting an FHA loan appraisal, the FHA uses an approved appraiser to thoroughly go over the home to note any deficiencies. If any areas are noted that make the home unlivable or unsanitary, the FHA appraiser will provide a list of the problems to the lender. The lender will provide the list to the buyer and seller. Generally, the seller will be responsible for ensuring that the property repairs are completed in order to meet FHA guidelines. Without approval, the home cannot be insured. There still may be work to be done on the home. If you purchase an FHA-insured home, you are accepting the home as-is and understand that the home has passed minimum FHA requirements.