Published December 8th, 2020
What is an FHA Appraisal Checklist?
An FHA appraisal checklist is a tool used by HUD-approved property appraisers to have a current estimated market value of the property which includes livability factors such as access to transport, health care, education and more. It helps to assess the property condition if it meets FHA minimum standards to protect the lender and avoid numerous repair needs for the homebuyers.
This article features:
- the FHA appraisal requirements;
- digital tool to streamline your FHA inspections; and
- free FHA inspection checklists you can download, customize, and use.
The FHA Appraisals are required to meet property standards set by the U.S. Department of Housing and Urban Development (HUD) to satisfy FHA loan requirements before a buyer can purchase the home. FHA inspections ensure to meet the following minimum standards:
Appraisers should inspect the level of risks to ensure homebuyers/ occupants are being protected from non-desirable outcomes. Below health and safety information should be checked:
- Environmental hazards and health risks;
- Structural integrity of the home;
- Electrical installation and utilities; and
- Lead-based paint and other chemical hazards
Assessing the market value of the property secures the lender to preserve the profit as the property serves as collateral for the loan. The following FHA inspection items are checked to validate the security of the property:
- Physical and visual condition of the property;
- Grading and drainage problems;
- Water Supply shortage;
- Septic tank system’s condition; and
- Road accessibility
Appraisers should ensure the property doesn’t have any physical deficiencies or conditions that will affect its structural integrity. Below FHA home inspection list is assessed to check for damages and repair needs.
- Property Disturbances such as sinkholes or natural depressions;
- Large or multiple cracks in the floor and walls of the property;
- Poor ventilation systems;
- Pest Infestation; and
- Roof and gutter leaks
Meeting the minimum standards helps homebuyers control additional costs for extensive damages and repair needs. While for lenders, it ensures deterioration doesn’t cut into the value of the home if the borrower defaults on a mortgage and reduces the risk of paying insurance claims.
FHA appraisal and inspection reports require significant photo evidence along with detailed notes of the property to be provided to the lenders. Using traditional pen-and-paper systems it is burdensome for appraisers to document all necessary evidence and takes time to generate needed reports. You can avoid these hassles with iAuditor by SafetyCulture, a mobile inspection app that can take unlimited photos of the property, capture detailed notes, and generate real-time comprehensive reports all on your mobile device and without leaving the property.
To save you time, we have created comprehensive FHA checklists you can download, customize, and use immediately on your handheld devices.
Featured FHA Checklists
FHA Appraisal Checklist - Health & Safety
Use this comprehensive FHA Appraisal Checklist to assess the livability of the property. Begin the inspection by taking pictures of the front, sides, and back of the house. Then proceed and check the possible hazards, soil contamination, drainage, water supply, insects, road access, soundness of the structure, roof, mechanical systems, lead-based paint, and other issues. Check also the standards for condominiums if applicable. Complete the inspection with the overall comment and assessment of the property’s health and safety. With iAuditor, photos and notes are automatically associated per line item.
FHA Appraisal Checklist - Market Value
Use this to help estimate the property’s market value. Take photos of the property and record as many comparable property transactions as needed. You can use the map to record the address of each property. Complete the assessment with the valuation notes and the appraiser’s signature.
FHA Home Inspection Checklist
An FHA home inspection checklist is used by HUD-approved property appraisers to thoroughly inspect the entire property. It is used to assess the exterior and interior structure of the house, electrical, plumbing, and ventilation systems if in good condition and comply with regulatory standards.