How do FHA loan appraisals work?

FHA.com: Home Purchase and Refinance Loans

FHA Loan Programs for 2024

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?




- Improving Your Credit Score Has Never Been More Important -

FHA.com is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.
Frequently Asked Questions

Learn About FHA Loans and How You Can Qualify

X

How do FHA loan appraisals work?

Last modified: June 30, 2022

How do FHA loan appraisals work?

An FHA appraisal is how your lender gets information to help calculate the fair market value of your home. It is different than a home inspection, which gives the borrower information needed to make an informed purchase.

Appraisals are intended to establish a home's fair market value. It also ensures that the property meets the minimum standards set by the FHA. These minimum standards do not guarantee that a property is completely free of defects. Establishing that is not the job of the FHA appraiser, nor does the appraisal constitute an approval for homes that "pass" the process. The FHA appraisal is not at indicator that the home has no problems.

An appraisal is ordered once a borrower has either selected a hometo buy or decides to refinance their current property. The FHA loan will only be approved once the appraisal is complete and the lender has determined that the house is suitable for an FHA mortgage. Some loans, like the FHA streamline refinance, do not require an appraisal. The lender can use the original purchase price or a recent appraisal for this kind of loan.

Did you find this question helpful?

31found this question helpful.