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FHA Appraisal Vs. Conventional Appraisal?

Discussion in 'FHA/HUD and VA' started by JoeB, Mar 18, 2007.

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  1. JoeB

    JoeB Member

    4
    Jun 1, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    At this point, what is the difference between a standard conventional appraisal and a FHA appraisal?
    The only difference i can see is a case number and the inspection itself.
    I had a lender ask for two samples of both?

    Thanks all!
     
  2. Couch Potato

    Couch Potato Elite Member

    0
    Mar 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    There are some specific guidelines for filling out the 1004 for FHA. Requirement for remaining economic life versus no requirement for site value and other minor differences; however, it is possible to make your appraisals fit both FHA and fannie/freddie guidelines as a regular procedure without too much trouble. Then, the case number, inspection and specific requirements for handling repair issues are the only basic differences. My additional fee for FHA is less than 20% extra.
     
  3. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Louisiana
    You need an environmental compliance addendum.Repair issues would be MPR items.
     
  4. xmrdfghap

    xmrdfghap Senior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    Florida
    Minimal diferences any more. Read the handbook 4150.2 for specifics.
     
  5. George W Dodd

    George W Dodd Senior Member

    0
    Jul 9, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia

    Greg,

    The appraiser no longer requires repairs on FHA appraisals; the appraiser lists all noted items and then it is up to the DU UW to require repairs.
     
  6. Brad Pack

    Brad Pack Junior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    California
    WRONG!!!!!
     
  7. Mr Rex

    Mr Rex Elite Member

    285
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Brad, I was about to post the same thing, also GP's advice is a few years behind. Given the fact that FHA is likely to see an unprecedented demand given the current issues in the sub prime market etc, any chance that FHA/HUD, is going to update/consolidate ALL of the requirements? There are conflicts in interpretations between 4150.2 and the more recent Mortgagee letters 2005-34 and 48. All of us on the front lines would really appreciate one stop shopping. The HOCs are even unsure of how some of the stuff meshes. Any help on the horizon? And please no more band-aid letters, can we expect a replacement/consolidation for 4150.2 and the Mortgagee letters?
     
  8. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Louisiana
    MPR Items are still required.Any unsafe items noted at the time of inspection.
     
  9. Jack D. Pratt

    Jack D. Pratt Sophomore Member

    0
    Feb 7, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    This is a good forum for me to read right now. I hope more elaborate! I am not approved FHA yet, but think I will be soon (as many have the opportunity to be right now). I've been doing a lot of reading and I am really confused as to what the difference is. I lost my mentor to cancer and I've been checking his reports...I really don't see much difference here. I ask myself....Is this just another standard appraisal OR, was I trained to make the 2 forms be as 1? I am learning a lot about rules and regulations and I am here to tell you....this stuff can get a bit overwhelming. I want to be "by the book" so therefore I could use suggestions as to the differences between the two. Any links (of course other than FHA ) or suggestions would be greatly appreciated here. Thanks.
     
  10. JoeB

    JoeB Member

    4
    Jun 1, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    by the looks of things, i am not the only one who has questions about the FHA appraisals, responsibilities and procedures! But wait..FEDERAL housing Administration.. Government Agency..need i say more!
     
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