Benefits of doing FHA appraisal's.

[cbosshog79]

I am a general certified appraiser in a semi-rural area; I do most property types, and can't afford to specialize in our market. In an attempt to gain a little more work load I am looking into FHA work. The appraiser that I worked under for seven years doesn't do them so I have no background in them at all.

Ultimately I hope to "specialize" to a degree in commercial and farm and ranch as my former boss and I are the only general certified appraisers in the county. In the mean time I need to make some money... I have a few questions.

1. What is the process to become qualified to do FHA appraisals?

2. What are typical fees for FHA work?

3. What is the most burdensome additonal requirement?

To give a little background, our typical interior/exterior URAR fee is $350.

 

[ghrousseau]

I am a general certified appraiser in a semi-rural area; I do most property types, and can't afford to specialize in our market. In an attempt to gain a little more work load I am looking into FHA work. The appraiser that I worked under for seven years doesn't do them so I have no background in them at all.

Ultimately I hope to "specialize" to a degree in commercial and farm and ranch as my former boss and I are the only general certified appraisers in the county. In the mean time I need to make some money... I have a few questions.

1. What is the process to become qualified to do FHA appraisals?

2. What are typical fees for FHA work?

3. What is the most burdensome additonal requirement?

To give a little background, our typical interior/exterior URAR fee is $350.

BossHog:

Too many questions to handle straight away so I will limit to a few, but if you use the search function you will find all you need:

1. The process is pretty straight forward. You apply on line with FHA through FHA connection website. There is an application you need to fill out and upload with your license. You also need to make sure you are currently showing on the AQB Website (search function will explain this)

2. Fees - the fees I see appraisers charging in VA, MD, NC, SC, GA, DC, MD, and DE range from $350 to $450 for SFR's and MFG Homes. In a more rural area you should be on the higher end of the spectrum.

3. The benefit at this time is that about 60 to 80% of the residential lending market is FHA at this time.

4. The guidelines for appraisers are on the HUD/FHA website, but I would suggest that you at minimum complete a online course or live course on appraising FHA properties. AI and McKissock have a course as well as others. FHA sometimes hosts seminars for appraisers and these would be your best source for training.

Here are a few helpful links and welcome to the forum.

Application Process which is very straightforward:

http://www.HUD.gov/groups/appraisers.cfm

Guidelines (there are also numerous mortgagee letters(updates) you need to be aware of as well (hence the suggestion for a current course or seminar)

http://www.HUD.gov/offices/hsg/sfh/ref/sfhind_w.cfm

 

[VolcanoLvr]

Take an 'Appraising for FHA' course. This is being given in many places around the US in the next number of months.

Download a copy of the 4150.2 manual off the HUD web site....or buy one if you don't want to burn up your printer!

Download the Revised Appendix D to the above manual.

These 2 docs are your bible for FHA work. Read 'em.

Get yourself a portable ladder that will allow you to access attic spaces. You need to observe/photo the attic..........and the crawl space also. I bought a 13' telescopic kind for about $190.

Search the AF for more info on FHA inspections. There's a bunch of stuff here.

FHA work is just one more bullet in your belt, or the extra tool in your kit bag of tricks.

 

[Don Clark]

Take an 'Appraising for FHA' course. This is being given in many places around the US in the next number of months.

Download a copy of the 4150.2 manual off the HUD web site....or buy one if you don't want to burn up your printer!

Download the Revised Appendix D to the above manual.

These 2 docs are your bible for FHA work. Read 'em.

Get yourself a portable ladder that will allow you to access attic spaces. You need to observe/photo the attic..........and the crawl space also. I bought a 13' telescopic kind for about $190.

Search the AF for more info on FHA inspections. There's a bunch of stuff here.

FHA work is just one more bullet in your belt, or the extra tool in your kit bag of tricks.

I agrre with George and Dave. Also, try this link and download the 2005-34 change to the FHA Handbook:

http://www.HUD.gov/offices/adm/hudclips/letters/mortgagee/2005ml.cfm

Also, check the web site for www.columbiainstitute.org I do some work for them and they/we will be doing FHA Appraisal training in various parts of the country. You can also do it as an on line course.

BTW,

The Columbia Institute is located in San Antonio, Texas and their number is 800-460-3147

 

[RSW]

Why not just do what most of the other new FHA appraisers are doing: Wing it!

No, I was just kidding.

Do as the other posters has said. Register, download the handbook 4150.2, the Revised Appendix D, Mortgagee Letters 2005-34 and 2005-48, 4905.1 Reqirements, 4910.1 Minimum Property Standards, FHA FAQs. and anything else you can find. Study this material. Read, read and re-read it again and again. Some of the information has been replaced with more current information such as the VC sheets have been retired but are still a good place to start when doing an inspection. Mortgagee Letter 2005-48 and the Revised Appendix D are the most current requirements. Take a FHA CE class and try to associate yourself with an experienced FHA appraiser that can walk you thrugh the process. I have taken appraisers out in the field with me so they can see how I do my inspections. You should also see how they are writing up their reports as well. Ann O'roarke has a FHA Special Report available which can help you too. Google it and order it. You can get it in pdf format. Lastly, read the threads in this forum on FHA. Go back into the archives and read. Just about every question that can be asked has been debated on this forum.

Good luck!

Scott

 

[Phil Snyder]

I just did my second FHA report today, little nervous as I haven't taken any classes. I got on the roster back a year or so ago (when you actually had to READ parts of the handbook).

We shall see, as far as I can tell I covered all the bases. I honestly never thought when I got started that I would NEED to do FHA work, back then they were considered to be a PITA, now they are the norm.