FHA appraisals: What to expect & how to prepare

by Lori Madden 03/10/2024

FHA loans are special in the fact they are backed by the government, and have lower credit score and down payment requirements. To qualify with an agency who provides this loan type, the home you wish to purchase must meet certain standards.

During this appraisal process, an FHA appraiser will come out to the property and evaluate its condition to determine if the property is a good investment.

How tough are FHA appraisals?

Many assume an FHA appraisal is harder to get approved; however, requirements have relaxed in comparison to previous years.

In general, appraisers are there to make sure the sales price is fair in comparison to the loan amount. They examine the quality of the property to make sure there’s no health and safety hazards such as wiring and electrical problems along with other issues. As long as the home is up to code, you have a higher chance of approval.

Do FHA appraisals usually come in low?

Please note, low home appraisals may happen due to market conditions, but on average, they are almost equal in results in comparison to conventional loans. If you do get a low appraisal, you can renegotiate higher after an appeal or choose to opt for a different property.

How do I prepare for an FHA appraisal?

Before getting to the FHA appraisal process, make sure the property you’re interested in meets FHA appraisal guidelines. This includes, but is not limited to:

Good structural condition.
No damage to the heating and cooling system.
The electrical system is in great condition.
No mold or waste that can be hazardous.
Etc.

With the right amount of research and working with your real estate agent, you can find a great home meeting FHA appraisal requirements.

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About the Author

Lori Madden

As a Florida native growing up in Sarasota, I have seen my hometown grow from a sleepy coastal town to a highly sought-after destination along the shores of the Gulf of Mexico. After working in Chicago for 5 years, I returned to Sarasota and saw it through a new lens and really began to appreciate what makes Sarasota so desirable, including temperatures that allow for year round outdoor activities including tennis (a personal favorite), golf, boating, kayaking, fishing, paddle boarding, or just relaxing and/or shelling on our pristine sandy shores, including Dr. Beach’s #1 beach in the United States for 2017, Siesta Key! Sarasota’s cultural amenities are many and diverse, appealing to a wide range of arts lovers. Downtown Sarasota has become a destination in itself, drawing many new developments for those who want to be within walking distance of Main Street's offerings and the picturesque bayfront and marina. Foodies will find an eclectic mix of locally owned and operated restaurants offering something for everyone, and there are now Farmers Markets every day of the week in various locations throughout Sarasota, but the Saturday morning Farmers Market in downtown Sarasota draws the biggest crowds. Since 1988, my passion has been selling real estate, representing both buyers and sellers. I have been recognized by my clients and customers for an uncompromising work ethic and dedication to helping them achieve their real estate goals. Relying on my experience as a real estate paralegal and being highly organized, I am able to help make the transition between contract and closing a smooth one for my clients. With an eye for interior and landscape design, I've been known to pitch in and help Sellers minimize and/or reorganize their belongings in order to stage their home to maximize its sale potential. I specialize in out of state buyers looking for their piece of paradise along the Gulf Coast and make it a priority to keep them up to date on our quickly changing local real estate market. I welcome the opportunity to share with you all Sarasota and her surrounding islands have to offer!