Many people don’t qualify for conventional loans, however the minimum requirements on FHA loans are lower than conventional. There are many different types of loans a home buyer or homeowner can obtain. Loans, or mortgages can fall under two categories: conventional or FHA (one from the Federal Housing Administration). When a buyer puts less money down to purchase a home, has lower income or a lower credit score, they can potentially obtain an FHA mortgage. To qualify for an FHA loan, the government requires a home appraisal to be completed.
The first purpose is determining the fair market value of the home. Because these loans are backed by the government, they need to know the appropriate amount to lend without overextending. The second is to determine if the home meets the minimum qualifications set by the agency.
As an appraiser who performs FHA appraisal inspections, there are additional items sought that need to be satisfied to pass the inspection.
Peeling paint – If a home was built before 1978, there is potential that lead-based paint exists. If peeling paint is present, it will need to be scraped and re-painted.
Utilities – All utilities are checked during the inspection to make sure they are working properly. This includes heat, hot water, electricity, and gas (if a gas appliances are present).
Safety hazards – These can include missing stair railings, broken glass from a window, crumbling exterior steps, foundation issues, and exposed electrical wiring.
Attic and/or crawl space – These areas will need to be photographed and inspected to assure there is no water damage, rot, or standing water. Everything should appear structurally sound.
Oil tanks – FHA will not lend on a property that has an oil tank in the ground. If it is in the basement or above ground level, it will be adequate.
In addition, part of the process as an appraiser is to assess the longevity of the home. This is called determining the remaining economic life. If an appraiser determines that the home has less than 30 years of life left to it, the government will not provide a 30-year mortgage.
A common misconception is that FHA mortgages require two appraisals. This is not true, one will suffice. In addition, the appraisal will be valid for 120 days from the effective date.
If a property is called out for something that fails during the inspection, the owners or sellers can repair those items. Most of the time, the items are insignificant and can be repaired easily. The most common failure is peeling paint on homes older than 1978. In these cases, the areas can be painted quickly, and the transaction moves forward. If the failure is something significant, as in a foundation issue, the lender has the right to reject the property.
As an FHA appraiser since 2005, I have performed my fair share of passing and failing appraisal inspections. Knowing these items before getting an appraisal done can be efficient and energy saving if you know what to remedy ahead of time. If you need an appraisal, whether it is FHA or conventional, we can help. We provide appraisals for the purposes of buying, selling, refinancing, estate planning, divorce, PMI removal, and tax appeals. Call us now to schedule an appraisal at 908-233-1337.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result