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Are FHA appraisals typically lower than conventional one's?

Do FHA Appraisers typically come in lower on valuation than most appraisers.
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September 16 2013 - Des Plaines
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Answers (14)

I agree with the other posts. The way I understand it, an appraisal is an appraisal, and it should be the same for every type of loan. The new stricter guidelines have made manipulating an appraisal pretty difficult. If you have received an appraisal that you believe is low, you can request another appraisal. You will have to pay for the second appraisal also.

Kevin

Own St George
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October 11 2013
No, the type of loan as no bearing on value!
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October 11 2013
Good question! Appraisers do not base the price of the house depending on what kind of loan it is, regardless of VA, FHA or Conventional Loan, the price will not change. If I am not mistaken, the appraiser doesn't have any knowledge about what kind of loan you have :)
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October 11 2013
The costs should be the same.  The appraiser has to do some more work on FHA, but costs shouldn't change.
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October 10 2013
the value should be the same fha vs conventional.  the difference is that the fha appraiser also looks the house over to see if there are any health/safety issues which would preclude the bank giving the buyer a mortgage (peeling paint is a big issue for fha for some reason).  often the seller will agree to make minor repairs to move the transaction along. 

keep in mind that if 5 different appraisers look at a property, you will likely see 5 different values. different appraisers give different weight to issues associated with the property. for instance I recently sold a townhouse and had two appraisals - one gave a $5000 credit for the view of the subject property vs a comp.  the other didn't give any credit - he thought looking into your neighbors windows vs looking at green space had no value. 
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October 10 2013
No the values should come in the same.  FHA appraisers have a few more items they typically look at than a conventional appraiser.  If you are referring to cost of the appraisal, the FHA appraisals are typically higher than conventional. 

If you are looking to get prequalified or refinancing your home and need more information, please call or email me and I would be happy to help.

Best regards,

Patty Harrison
Smart Mortgage Centers
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September 25 2013
No, the market value is what it is and it doesn't matter what type of financing. The appraisal is based on properties that have recently sold (generally less than 90 days) in the neighborhood or very local proximity, same style, room count, square footage, condition, amenities. Given that, a value can still be a little subjective on the part of the appraisers opinion, but it shouldn't make any difference in terms of what type of loan you are applying for.
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September 16 2013
The value should be consistent whether the appraisal was completed for an FHA or conventional loan. The appraised value is based on the sales price for similar properties in the market area and the type of loan applied for doesn't impact the value.

Where you do sometimes run into a difference between a conventional and FHA appraisal is with regards to the property's condition. items like peeling paint, mechanical system problems and safety issues will sometime be required to be addressed as part of the appraised value and the ability for the property to qualify for FHA financing.
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September 16 2013
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Nope.  It's just that FHA loans usually require the property be in a little better condition.  I have seen FHA appraisals call for things like windows and shutters to be painted (where paint was peeling) exterior handrails tightened or replaced and even driveways resealed.  We usually do not see requests like that with conventional loans
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September 16 2013
Appraisals are based on comparables, not whether the loan id fha/conventional/investor/owner occupied or anything else. However the property needs to be in better condition for FHA than conventional so know the potential issues before potentially wasting time and money on a property that might not qualify for fha
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September 16 2013
The appraisal is the same in regards to the amount the appraisal comes in at no matter what program is selected.
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September 16 2013
No. But it is harder for the appraisal to get approved as FHA appraisers are picker because the house should be in livable condition.
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September 16 2013
No, an appraisal is an appraisal. The program doesn't have any bearing on the appraised value.
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September 16 2013
no
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September 16 2013
 
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