Morley & McConkie LC has a number of Federal Housing Administration (FHA)/Housing and Urban Development (HUD) approved appraisers that provide appraisal and consulting services in Utah, Nevada, and parts of Mohave and Coconino counties in Arizona.
While an individual borrower is not allowed to order an appraisal directly for any loan that is to be used for a Government Sponsored Entity (GSE), lenders or the Appraisal Management Companies that represent them can request an appraisal knowing that the appraiser is competent in all aspects and is aware of the minimum property standards required by HUD.
We provide consulting services for Real Estate/Mortgage professionals and their clients who want to know if the property being refinanced, purchased or sold will meet HUD's minimum property requirements prior to having the appraisal completed. HUD's primary concern is to make sure that the property does not have "health or safety" issues that need to be resolved or that would disqualify the property from HUD insurance.
There are slightly different inspection requirements for appraisals being insured by HUD or that are subject to the HUD standard as part of the scope of work. The appraiser must have access to the attic and crawl space, (if applicable) All utilities must be on at the time the appraiser inspects the property and the garage door must be operational. The appraiser will need to be able to verify that the plumbing, heating and cooling systems are operational and that the garage door will properly reverse. Some of the "health or safety" issues that are commonly found include exposed electrical, lack of railings on stairs, and in older homes pealing paint that may be lead based.
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). FHA does not loan money to borrowers, rather, it provides lenders with protection through mortgage insurance (MIP) in case the borrower defaults on loan obligations. Available to all buyers, Although FHA loan programs are available to most buyers, they are designed to help creditworthy low-income and moderate-income families who do not meet typical requirements for conventional loans.
FHA allows the lenders to choose the appraiser as long as the appraiser is approved to provide FHA appraisals. The Veterans Administration (VA) has their own panel of appraisers and their appraisals are completed on a rotational basis among the VA panel of approved appraisers.
FHA loan programs are beneficial to those buyers with less available cash. Rates on FHA loans generally are competitive with market rates, and down payment requirements lower than for conventional loans.
Browse our website to learn more about appraisers, our qualifications, expertise and services offered.