Home Buying in Denver>Question Details

J, Home Buyer in 80205

FHA Appraisal question????

Asked by J, 80205 Fri Jan 9, 2009

FHA APPRAISAL QUESTION??My offer just got accepted on a home in denver, I am using FHA financing. I found out the FHA appraisal went thru fine but....I know the appraisal was done without the water turned on and without a working furnace (the wires had been cut). Should I have any concerns as the homebuyer, it seems like the appraiser didn't do his/her job????? thanks.

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FHA appraisals have a strict guideline and your appraiser should have either noted that the water wasnt turned on and made a point to return to the property to complete the appraisal when the water is on and also must have made the same note about the furnace being inoperable. I would talk with your agent and mortgage broker to discuss these items.

There is also a new FHA 203k program that allows you to obtain the FHA loan without the home meeting the minimum criteria for safety and habitability but those issues that normally would have to be taken care of up front have to be financed with escrow funds placed at closing within 90 days of closing date. This is a new program and is used for buyers who want FHA financing but still have the ability to buy a home that needs remodelling (e.g. bank homes or distressed properties). Again, talk to your real estate and mortgage advisors.

Good Luck

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0 votes Thank Flag Link Mon Jan 26, 2009
J,

I agree that something is not right here. FHA guideline are lenient on many things except the fact that the home has to be livable (must have functioning heat, water, stove, sink in the kitchen, toilet(s) in the bathroom). They don’t really care about the closer washer or the dishwasher because these are not necessary to live in a home. I know that they are very strict about these issues. If you are buying a regular bank owned home you maybe able to get them to fix the furnace as this should have been a red flag on the appraisal.

Talk to your agent as they should have the negotiating skills to get these things right for you!

Leslie Heldenbrand
0 votes Thank Flag Link Sat Jan 10, 2009
Fha guidelines include functioning water, sewer and furnace. The appraiser usually adds a paragraph stating this will need to be done and the appraiser will have to come back and inspect again to make sure they are on. If it is a bank owned home the buyer will be responsible for getting both working. You can always ask teh bank to do so, but know it is sold as is. good luck in your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jan 10, 2009
thanks for the answers on this foreclosed home.

I did have an inspection done a week AFTER the appraisal was performed by my lender. the inspection was done with the utilities on.
I had to delay my inspection because the water meter needed to be replaced in order to get the water turned and cut wires on the furnace had to be fixed. So this is how I know the appraiser didn't have the water or furnace on when the appraisal was performed.

my realtor is definately skeptical about these circumstances, but doesn't seem to think it will affect me as the buyer. my lender has had the appraisal double checked and there are apparently no hold-ups on the loan going thru, based on the appraisal.

just on side note, if FHA is so picky...the inspection showed (among other things) obvious paint chipping, missing plumbing to clothes washer, no garbage disposal,hole in chimney, plumbing leaks, and no plumbing hooked up to dishwasher,
0 votes Thank Flag Link Sat Jan 10, 2009
Is this A HUD Home in Denver? If you offer was just accepted, did you complete your Inspection before the Appraisal? If so what did the Inspector say about no utilitys?
A Home going with a FHA loan must be in order ( meaning you have to have HEAT, Water, Hot water, a stove or place to cook. You have to be able to live in the home.
Something is not right here.
Contact your Agent and get to the bottom of this
http://www.denverrealestatesoup.com
0 votes Thank Flag Link Sat Jan 10, 2009
Wow, you need to talk to your Realtor and your lender. Every FHA appraisal I've had done on the homes I've Sold wouldn't do the appraisal without the water on and the furnace working. They're usually so picky that everyone's worried over the little things not the big things. I had one where there was the tiniest little leak from the kitchen faucet that had to be repaired and then the appraiser had to go back out and make sure it was repaired correctly. We have one right now, that the appraiser said the exterior of the house had to be painted, so the bank that owns it is having it painted. They really want to make sure that you the buyer are getting a move in ready home. If you could repost what the outcome is, I sure would be interested to know how it goes. Thank you,

Sandy Kinslow
0 votes Thank Flag Link Fri Jan 9, 2009
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