FHA Appraisal Requirements
FHA now requires appraisals to be ordered through a 3rd party, eliminating any communication between the bank and the appraiser.
For a purchase transaction, the appraised value must come in at the purchase price or higher. If it comes in lower, the price needs to be either reduced, or the buyer will have to come to closing with the difference. The lender will only base your loan on the lower of the purchase price or appraised value.
For a refinance, the appraised value can be critical to obtaining the loan you are seeking. Some new programs such as the Making Home Affordable Refinance program allow for up to 125% financing, but some home owners nationwide are still having a hard time, as it is estimated that as many as 40% of all homes are upside-down on their mortgage.
To get started with your FHA Mortgage, simply select the scenario that best suits your needs:
More questions about FHA Appraisal Requirements?
Ask an FHA Expert with our Ask an Expert Feature.
