FHA Work And Fees

[Jacob Coleman]

Hi all, I'm new to the FHA topics. I wonder since there is extra inspection for the health and safety,

• Do you guys usually charge more for FHA assignment? If so, how much?
• After you visit the property and list out the things to be repaired, do you go there a second time before the closing to ensure the marked items are repaired?

Thanks!

 

[Elliott]

FHA has a set of standards, a 90+ page document 4000.1. I charge more because the inspection and some of the comparable requirements are different.
Not all properties require a re-inspect, but when they require a re-inspection, that is charged for too.

 

[Tom4value]

In answer to your second question, yes. FHA loans cannot close until th items are addressed and it is our determination with a 1004D.

Regarding your first question, yes, we generally get paid about $50 to $100 more because of the extra verbiage/explanation involved.

Back to the first part of your post. FHA qualified appraisers don’t “turn off” based upon the loan program. We ALWAYS inspect for health and safety items and report any and all of these items, regardless of loan program. If you hear that an appraiser who does an appraisal for a conventional loan has to go “back and inspect for FHA items” if the loan changes to FHA, you know that that appraiser is lazy during inspection.

 

[chad hampton]

R&C is usually about $100-$150 more for an FHA. Most AMC's seem to offer $25 more or so.

 

[PushinValue]

In answer to your second question, yes. FHA loans cannot close until th items are addressed and it is our determination with a 1004D.

Regarding your first question, yes, we generally get paid about $50 to $100 more because of the extra verbiage/explanation involved.

Back to the first part of your post. FHA qualified appraisers don’t “turn off” based upon the loan program. We ALWAYS inspect for health and safety items and report any and all of these items, regardless of loan program. If you hear that an appraiser who does an appraisal for a conventional loan has to go “back and inspect for FHA items” if the loan changes to FHA, you know that that appraiser is lazy during inspection.

I don’t understand... lazy?

I am not going into attics or crawl spaces for conventional loans. I’m not driving comps for private appraisals when it is not part of the scope of work....

Do you complete every inspection to 4000.1 standards?

 

[Tom4value]

I don’t understand... lazy?

I am not going into attics or crawl spaces for conventional loans. I’m not driving comps for private appraisals when it is not part of the scope of work....

Do you complete every inspection to 4000.1 standards?

Yeah, I do!
I am an FHA qualified appraiser. I take a peek in the attic and take a photo. I take a photo of the basement. That way, if the loan gets switched to FHA, I don't have to go back.
So you lower your standards on private deals, eh? Don't take comp photos when you certify that you inspected the exterior of the comp from the street?

Lazy....What is that phrase, "if the shoe fits...."?

 

[bnmappraisal]

If you hear that an appraiser who does an appraisal for a conventional loan has to go “back and inspect for FHA items” if the loan changes to FHA, you know that that appraiser is lazy during inspection.

Think I gotta disagree with you here Tom

I wouldn't say "lazy" is correct. And I don't understand why you would do a full FHA inspect for a CONV loan (along with the attic and crawl space inspects, do you open windows, observe appliances functional, etc?!)

I do my CONV inspects to CONV standards and FHA to FHA standards.

I charge $X for CONV and $X+ for FHA (typically is $50-100 more, but I agree many large(r) AMCs typically only like to pay $25 more)

 

[bnmappraisal]

To the OP, the reason I charge more for FHA appraisals is because the SOW is more. The inspection taking longer is a big part of it.

 

[Jacob Coleman]

Yeah, I do!
I am an FHA qualified appraiser. I take a peek in the attic and take a photo. I take a photo of the basement. That way, if the loan gets switched to FHA, I don't have to go back.
So you lower your standards on private deals, eh? Don't take comp photos when you certify that you inspected the exterior of the comp from the street?

Lazy....What is that phrase, "if the shoe fits...."?

You made a good point, Tom4value. It definitely saves the time in going back if a conventional loan gets switched to FHA.

I have another question, suppose, the appraisal was originally done for a conventional loan, then it got switch to FHA, will you charge extra for the switch?

 

[Tom4value]

Think I gotta disagree with you here Tom

I wouldn't say "lazy" is correct. And I don't understand why you would do a full FHA inspect for a CONV loan (along with the attic and crawl space inspects, do you open windows, observe appliances functional, etc?!)

I do my CONV inspects to CONV standards and FHA to FHA standards.

I charge $X for CONV and $X+ for FHA (typically is $50-100 more, but I agree many large(r) AMCs typically only like to pay $25 more)

Like I said, I generally do an inspection the same way all the time. That way, I don't forget anything and if the loan does get switched to FHA, I probably don't have to go back again. I will say probably because if it is conventional, if the attic scuttle would be a hassle to open and take a photo, I may not take a photo (walk up/drop stair I do). Appliances, if I suspect they are not working, I will try them out.

On a conventional appraisal, if you don't go into a walk-up attic, go into the basement or look into a crawl space, inspect something that catches your eye (water stains on ceiling, visibly damaged electrical/plumbing or, as the previous poster said, don't bother driving by comps, then yes, lazy is the term.