FHA Inspections

[RSW]

Is it common to let the h/o know in advance that you will be flushing commodes, testing water pressure, accessing crawl spaces, taking pics throughout, etc.?

I always give the "heads up" to the h/o that the lender requires interior photos. But I don't typically have them turn the furnace and a/c on, nor do I flush commodes or turn on faucets. Should I - on a conventional loan?

I have taken several classes on FHA in the past. Don't remember any of the above being discussed.

Just read Mortgagee letter 2005-48 and the Revised Appendix D for your answer.

 

[KEN SMITH]

I know a longtime FHA appraiser.She weighs about 250 lbs and has trouble getting out of her car.Wonder if she gets into the attic or in the crawl space.She might get stuck or fall off the ladder

 

[Rrebera]

yes on the conventional

Is it common to let the h/o know in advance that you will be flushing commodes, testing water pressure, accessing crawl spaces, taking pics throughout, etc.?

I always give the "heads up" to the h/o that the lender requires interior photos. But I don't typically have them turn the furnace and a/c on, nor do I flush commodes or turn on faucets. Should I - on a conventional loan?

I have taken several classes on FHA in the past. Don't remember any of the above being discussed.

yes with the conventional

 

[Jason Barber]

During my last FHA class put on by AI... the instructor mentioned that in due time it will be considered generally accepted practice to complete appraisals for conventional loans in the same manner as FHA assignments. This seems to make sense as FHA loans are starting to dominate the financing markets.

I currently follow about 90% of the FHA inspection process for all my conventional assignments. To me, it just makes good sense.

I have taken several classes on FHA in the past. Don't remember any of the above being discussed.

:Eyecrazy: If I were you, I would ask for my money back.

 

[Mike Garrett RAA]

While it is important that an appraiser doing an appraisal for FHA check certain things, we need to remember...'WE ARE NOT HOME INSPECTORS!". I concur with the statement..."all appraisal inspections should be as complete as an FHA appraisal inspection".

The collapse of the sub-prime market has moved many lenders and appraisers over to the FHA market. Lessening of qualifications for the appraiser, including elimination of any kind of test, has lead to unqualified individuals doing FHA appraisals. This eventually will lead to additional problems in the industry and probably another big government bail-out program. There will also be "downward" pressure on fees. Too many appraisers chasing too few assignments.

I do few FHA appraisal assignments at this time because my fees are not competitive. While I charge slightly more than an conventional or VA appraisal fee for an FHA appraisal, there are some IN MY MARKET doing FHA appraisals for as little as $250. Based on the inspection requirements, time necessary to meet the client driven Scope of Work (inspections), and increased liability because of those inspections and certifications, I will not do an FHA appraisal for less than what I now charge.