There are plenty of things to know about FHA loans. More specifically, here’s what you need to know about FHA appraisal and inspection requirements in Washington state.
The Federal Housing Administration mortgage insurance program is managed by the Department of Housing and Urban Development (HUD). This means that HUD establishes all of the requirements and guidelines for FHA loans in Washington state – and that includes property appraisals and inspections.
But HUD does not actually require FHA home buyers to have a full inspection. They strongly encourage it, and borrowers do receive a HUD disclosure that explains the value of a home inspection. But such an inspection is not required for FHA loans in Washington state.
In Washington state, FHA appraisers determine the current market value of the property as well as evaluate its overall condition. So in a sense, the appraiser wears “two hats.” This is what makes FHA home appraisals unique.
So what can you expect during the appraisal process? What are the property inspection requirements for an FHA loan in Washington state? Here’s a quick overview:
The Department of Housing and Urban Development is primarily concerned with the health and safety of the person who is buying the home. In fact, you’ll see this phrase used many times throughout HUD’s property requirements handbooks.
In Washington state, FHA home appraisers pay particular attention to issues that might affect the health and safety of the occupant.
The appraiser will do a basic inspection of the home’s electrical system. Here again, he is primarily focused on functionality and safety. The electrical system must work properly and must not present any hazards to the homeowner or the property.
FHA appraisers also evaluate the installed plumbing system to make sure that it works properly. The appraiser will also evaluate the home to make sure there aren’t any leaks that could result in property damage over time.
Heating systems are another checkpoint during FHA appraisals and inspections in Washington state. Here again, the appraiser is mostly concerned with functionality. The heating system must work properly, and free of any defects that would interfere with operability.
Encroachments are another key checkpoint during FHA home appraisals and inspections. An encroachment occurs when one property’s structures intrude onto another person’s property. For example, if a patio or outbuilding crosses the line into someone else’s property, an encroachment has occurred. If an encroachment is identified during the FHA inspection process, it might prevent the loan from moving forward.
You can learn more about Washington state FHA inspection requirements and guidelines by reviewing HUD Handbook 4000.1 (also known as the “Single-Family Housing Policy Handbook”).
Are you curious about FHA loans or other mortgage programs available to buyers in Washington, Oregon, Idaho, California or Colorado? Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region, and have been doing so since 1992. Please contact us if you have mortgage-related questions.
No. HUD does not require a full home inspection for FHA loans in Washington state, though it strongly encourages buyers to get one.
Yes. FHA loans require a property appraisal to determine market value and assess the home’s overall condition.
A home inspection focuses on the condition of the property and possible repair issues. An FHA appraisal focuses on market value while also checking for certain property condition and safety concerns.
FHA appraisers look at the home’s market value and basic property condition, with special attention to health and safety issues that could affect the occupant.
Yes. They perform a basic review of the electrical system to make sure it functions properly and does not present safety hazards.
Yes. They evaluate the installed plumbing to confirm it works properly and look for leaks that could cause property damage over time.
Yes. The heating system must be operational and free of defects that would interfere with its proper function.
An encroachment happens when a structure from one property crosses onto another property. Examples can include a patio, fence, or outbuilding extending over a property line.
Yes. If an encroachment is identified during the appraisal process, it can delay or prevent the loan from moving forward until the issue is resolved.
HUD focuses on health and safety to help ensure the home is suitable for occupancy and does not pose obvious risks to the buyer or the property.
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