FHA appraisal

An FHA appraisal is mandatory for those who take FHA-insured mortgages. The appraisal protects the interests of the FHA and the lenders who make the loans that the Federal Housing Administration insures. The appraisal confirms the home's market value. This assures the lender and FHA that they are not lending or insuring more than the home's worth. Appraisers conduct a limited review of the physical condition of a home. The appraisal of all properties that need to get an FHA-insured mortgage must be performed according to the generally accepted standards of appraisal. This has to be prepared by a licensed or certified appraiser. The FHA allows lenders to select appraisers for homes purchased with loans insured by the FHA. If the appraiser does not perform appraisal functions according to the instructions and standards set by the HUD, the appraiser would be removed from the Appraiser Roster.