FHA Appraisal Re-Inspection
An FHA appraisal re-inspection is required when 180 days have passed since the first inspection and the FHA loan has not closed yet.
Furthermore, an FHA reinspection is required when there are issues discovered that won´t pass an FHA inspection, such as the violation of the peeling paint guidelines.
The appraiser acts as the eyes of the lender and the eyes of HUD. If the appraiser notes any of the issues that won’t pass FHA inspection, the appraisal is then completed subject to repairs or re-inspection.
Once those repairs are complete, the appraiser is called back out to verify that the home now meets the guidelines. While the underwriter can overrule the re-inspection, the client will want to ensure that the required repairs are performed, so will arrange a reinspection in any case.
The appraiser has to perform the reinspection and cannot verify repairs were completed simply by someone else photos. If the client hired the appraiser to go back to the property after the necessary repairs were allegedly performed, he has to go. An appraiser will not sign something that was not seen in person.
That is the reason why in the real estate industry we usually think that the appraiser is behaving weirdly about the reinspection, but he simply has instructions from the client and also, represents the interests of the FHA in that reinspection.
FHA appraisals are good for up to 180 days. In some instances, an appraiser can recertify the value if they agree to do so before the original appraisal expires.
For these typical issues with reinspections, “subject to repair” clauses and to avoid extra costs, we recommend always getting familiar with the FHA appraisal and inspection guidelines and repairing the property beforehand because sometimes you have a property that requires an FHA appraisal re-inspection just because there is peeling paint in an old house that can cost twenty bucks to retrieve and repaint that small segment.
I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go. I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.
