- What things do FHA appraisers look for?
- Does FHA require 2 appraisals?
- Why would FHA not approve a home?
- What disqualifies an FHA loan?
- Do sellers have to pay closing costs on FHA loans?
- How do you know if a house is FHA approved?
- Who pays for the 2nd appraisal on an FHA flip?
- Can you buy a flip house with an FHA loan?
- What will fail an FHA inspection?
- Are FHA appraisals more strict?
- Why do sellers hate FHA loans?
- What is the FHA 90 day rule?
What things do FHA appraisers look for?
FHA appraisal checklistThe foundation must be structurally sound.Water must drain away from the foundation.Utilities, including water, sewage, heat and electricity, must be turned on during appraisal.All appliances must function properly.Water pressure must be adequate, with hot and cold water available.More items….
Does FHA require 2 appraisals?
The lender must obtain a second appraisal from another appraiser and the cost of the second appraisal may not be charged to the homebuyer. The second independent appraisal must be completed by a FHA roster appraiser selected by the lender that is underwriting the mortgage.
Why would FHA not approve a home?
If the appraisal “comes in low” (meaning the house appraises for less than the purchase price), then the FHA probably won’t approve the home for financing. Depending on the situation, the homeowner /seller might be willing to reduce the sale price to reflect the appraisal amount.
What disqualifies an FHA loan?
1. Credit score. According to the Department of Housing and Urban Development (HUD), you need a credit score of at least 500 to be eligible for an FHA loan. … But most want to see a credit score of 600 or higher. If you fall well below this range, you might be denied for an FHA loan.
Do sellers have to pay closing costs on FHA loans?
FHA loans allow sellers to cover closing costs up to six percent of your purchase price. That can mean lender fees, property taxes, homeowners insurance, escrow fees, and title insurance.
How do you know if a house is FHA approved?
You can see FHA eligible properties in the Opendoor app. By editing your feed, you’ll see properties relevant to your criteria (such as FHA eligible properties only). Government-backed FHA loans require the home being purchased be owned by the seller for 90 days.
Who pays for the 2nd appraisal on an FHA flip?
Buyer may not pay for the second appraisal. Must include documentation to support increased value. A lower value is used if the second appraisal is 5% lower than the first appraisal. The lender must obtain a 12-month chain of title documenting resales.
Can you buy a flip house with an FHA loan?
Yes, you can use an FHA loan to buy a flipped house—at least for now. Up until recently, the Federal Housing Administration (FHA) would not insure a home loan for a house that was resold within 90 days of purchase. Fortunately, the FHA has waived its so-called anti-flipping rule until 2014.
What will fail an FHA inspection?
Structure: The overall structure of the property must be in good enough condition to keep its occupants safe. This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.
Are FHA appraisals more strict?
The FHA Appraisal To secure a mortgage, the property must meet FHA minimum standards and meet a fair market value. … As such, FHA appraisals are usually more strict than conventional appraisals. To qualify for an FHA loan, the appraisal must show: The roof is in good repair with no work needed for two years.
Why do sellers hate FHA loans?
Sellers often believe, too, that buyers who need a lower down payment might not be able to afford any home repairs. Sellers worry that FHA buyers because of their lack of cash might be more willing to walk away from an offer if the home inspection turns up any problems. For FHA buyers, these are both cause for concern.
What is the FHA 90 day rule?
The 90-Day Rule The FHA lender must hire an FHA appraiser that will look at the last three years of the home’s ownership. If the last recorded deed is less than 90 days away from the new purchase contract date, the FHA lender must decline the loan.