In order to qualify for a government-backed mortgage from the Federal Housing Administration, you must prove that your property meets certain criteria with an FHA approved appraisal in Pennsylvania. An FHA mortgage makes housing more affordable by offering loans to those with lower credit scores at reduced interest rates.
The eligibility requirements for properties are set by the HUD (Department of Housing and Urban Development) and serve to ensure that the loan is a secure investment for the lender. Additionally, the condition of the home must meet certain standards in order to qualify for this type of loan; hence the need for an FHA approved appraisal in Maryland.
Appalachian Appraisal Services provides state-certified, FHA-approved residential real estate appraisals across Maryland, West Virginia, and South-Central Pennsylvania. Our certified appraisers perform detailed valuations and property safety assessments in strict compliance with U.S. Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA) guidelines.
FHA Approved Appraisal Requirements
The purpose of the appraisal is twofold: to establish the market value of the home and to determine whether or not a property meets the HUD’s minimum property requirements in order to qualify for a government-backed loan. An appraiser must inspect the interior, exterior, and surrounding area to assess the physical condition of the property.
The appraiser must also ensure that a home is in livable condition and must identify any environmental hazards or defects. Everything from the property’s structural soundness and functionality to the site it is built on is taken into account when performing an FHA approved appraisal.
What Does an FHA Appraiser Look For?
An FHA approved appraisal differs from a conventional appraisal because the appraiser acts as both a market valuation expert and a HUD property inspector. The appraiser must verify that the property meets HUD’s three core standards: Safety, Soundness, and Security.
During the physical inspection, our FHA-certified appraisers evaluate:
- Roofing & Attic: Roofs must prevent moisture intrusion and have a remaining life of at least 2 years. Attics are inspected for structural damage, ventilation, and leaks.
- Heating & Electrical Systems: The heating system must be functional and capable of maintaining temperature. Electrical panels must not have exposed wires or any kind of dangerous wiring (such as overloaded knob-and-tube wiring).
- Foundation & Structural Integrity: The crawl space, basement, and foundation walls must not have significant structural settlement, water, or an active infestation.
- Lead-Based Paint Hazard: For homes built before 1978, any chipping, peeling, or flaking paint must be scraped and repainted to eliminate lead hazards.
- Headroom & Safety Barriers: Stairways must have functional handrails, and sleeping rooms must have operable egress windows directly to the exterior.
- Utilities & Mechanicals: Running water and water heaters (with pressure relief valves vented correctly) must be verified during inspection.
HUD Requirements
The minimum property requirements set out by the HUD are used by the appraiser to establish the condition of the property for mortgage purposes.
The main elements being checked in the appraisal are: safe access to the property; functioning heating, lighting, sewage, and ventilation systems; adequate water supply and a safe distance for drainage; no chemical hazards such as soil contaminants or lead-based paint; and no health and safety hazards such as broken windows or structural issues.
FHA Approved Appraisal Summary
An FHA mortgage makes housing affordable for those with low credit scores by offering loans at lower interest rates. An FHA approved appraisal in West Virginia is necessary to secure a government-backed loan and is used to establish the property’s market value and assess whether it meets the HUD criteria.
Frequently Asked Questions
What are the most common reasons a home fails an FHA appraisal?
The most frequent repair conditions flagged on FHA reports include peeling paint, missing stair handrails, exposed electrical wiring, leaky roofs, non-functioning heating systems, and standing water in crawl spaces.
Can a buyer get an FHA loan if the appraisal flags repair items?
Yes. If repair conditions are noted, the appraisal report is issued “subject to completion of repairs.” The seller or buyer must repair the flagged items before closing. Once fixed, the FHA appraiser conducts a re-inspection (using Fannie Mae Form 1004D) to verify completion and clear the property for closing.
How long is an FHA appraisal valid?
An FHA appraisal is valid for 120 days from the date of the property inspection. In expanding market conditions, a 30-day extension can be requested before the original period expires, provided the lender updates the file.
Contact Us
Are you ready to schedule your FHA Approved Appraisal in South-Central Pennsylvania? Please contact us to schedule your appraisal time and date.