If you're considering buying a home with a Federal Housing Administration (FHA) loan, you're sure to hear the term 'FHA approved' mentioned regularly. The approval is such an important part of the purchase that multiple aspects of the process require it. To help you make sense of the concept, the certified experts at Metro Appraisal Associates in Rochester, NY, explain what it means as well as how to identify a home that meets the standards.
What Does 'FHA Approved' Mean?
'FHA approved' refers to three different aspects of the home buying procedure: lender, property, and appraiser. To qualify for an FHA loan, you must first work with an FHA approved lender. This is a mortgage institution that meets all the standards set forth by the U.S. Department of Housing and Urban Development (HUD).
Before your approved lender allows you to purchase a home, the property itself must also meet the guidelines set by the FHA. To identify which homes meet the criteria the organization requires a real estate appraisal that is completed by an approved appraiser. This professional stands out from other types of home surveyors because they have a thorough understanding of the requirements necessary to receive approval, as well as the process that must be completed before a lender will agree to the purchase.
What Qualifies a Home for FHA Approval?
The guidelines are updated on a yearly basis, but some of the main areas of focus are structural safety, health, and living conditions. Structurally, your certified appraiser will inspect the roof, walls, and various components, like railings, while potential health hazards include exposure to lead based paint and mold growth. They'll also check the general living conditions of the home with particular attention to the heating system.
Once they've completed a thorough inspection of the home, they will complete and file a report with the administration. This review includes their assessment, photographs, and their suggested market value of the home. If they find a need for repairs, the current homeowner is required to fix the issues before the lender approves.
Find out if your dream home is FHA approved by contacting Metro Appraisal Associates. The qualified team offers mortgage financing appraisals for multiple New York counties including Monroe, Ontario, and Wayne. If you live outside of the Greater Rochester area, the team will happily connect you with certified appraisers in their extended North American network. Schedule an appointment today by calling (585) 225-3042 or contacting them through their website.