Some common issues that might arise in an FHA (Federal Housing Administration) home appraisal include:
- Safety and Health Concerns: FHA appraisers are particularly concerned with the safety and habitability of a property. Issues such as peeling paint in homes built before 1978 (which could indicate the presence of lead-based paint) or major health and safety hazards may lead to appraisal issues.
- Structural Soundness: The FHA appraisal will assess the structural integrity of the home. Any significant structural issues, such as a damaged roof, foundation problems, or other structural defects, could pose challenges.
- Property Condition: The FHA places emphasis on the overall condition of the property. If the home is in significant disrepair or requires major renovations to make it habitable, it may not meet FHA standards.
- Water Damage: Water damage, especially if it has led to mold or rot, can be a red flag in an FHA appraisal. Leaking roofs, plumbing issues, or flooding problems can contribute to these concerns.
- Property Valuation: The FHA appraisal also aims to determine the fair market value of the property. If the appraiser believes that the agreed-upon sale price exceeds the property's appraised value, it could lead to complications in securing an FHA loan for that amount.
- Missing Appliances: FHA appraisals require that certain basic amenities be in place, such as a working stove and heating system. If these are missing or not in proper working condition, it could cause issues.
It's important to note that FHA appraisal requirements can change, and local variations might exist. Additionally, the specific details of an appraisal will depend on the individual circumstances of the property in question. If you're in the process of selling or buying a home and are concerned about FHA appraisal issues, consulting with a Sun Point Appraisals, Inc professional can provide up-to-date and tailored advice based on your specific situation.