An FHA appraisal must follow specific guidelines and standards set by the FHA. The appraiser will use a Valuation Conditions (VC) form to document any defects or repairs needed for the property. The appraiser will also use a Uniform Residential Appraisal Report (URAR) to provide a detailed description and analysis of the property.

Some of the main requirements of an FHA appraisal include:

• The property must have adequate access to utilities, water, sewage, heating and cooling systems.
• The property must have adequate ventilation, insulation, drainage, roofing, flooring, walls, windows and doors.
• The property must be free of hazards such as termites, mold, asbestos, lead paint, radon gas, contaminated soil or water, or excessive noise.
• The property must have adequate living space and functionality for its intended use.
• The property must have a remaining economic life of at least 30 years.

The appraiser will also look for any cosmetic or minor defects that do not affect the safety or functionality of the home, such as peeling paint, cracked tiles, worn carpets or outdated fixtures. These defects do not require repairs, but they may affect the value of the home.

How long does an FHA appraisal take and how long is it good for?

An FHA appraisal usually takes about an hour to complete, depending on the size and condition of the property. The appraiser will inspect both the interior and exterior of the home, as well as measure its dimensions and take photos. The appraiser will then write a report with their findings and conclusions.

An FHA appraisal is valid for 120 days from the date of completion. If the loan closes within this period, no update or re-appraisal is required. If the loan closes after this period, but within 240 days from completion, an update or re-certification of value may be required. If more than 240 days have passed since completion, a new appraisal is required.