FHA Observation Checklist for Appraisers

An appraiser’s property visit for an FHA loan is the fodder for many a misconception by buyers, sellers, real estate professionals, and even lenders. 

Anecdotal accounts of real estate agents counseling FHA buyers not to get a home inspection because “If there’s anything wrong with the house, the FHA appraiser will find it” cause chills to run up appraisers’ spines. HUD itself helped to foster this misconception over 15 years ago, with its infamous television commercials showing an appraiser tugging on pipes in the basement of a dwelling. 

FHA appraisals are not home inspections, and appraisers know this. But there is another more recent misconception, perpetuated by some lenders – namely that FHA appraisals are the same as conventional appraisals. They are not, as we shall see. 

This is a non-credit course, which is designed to introduce you to a property observation checklist that can be used when appraising a property for an FHA loan. More detailed and specific information is available in another McKissock course titled The NEW FHA Handbook 4000.1. 

At this point, we must disclaim that no course or checklist can possibly address all of the possible situations that an appraiser may encounter out in the field. As such, this course and the checklist are not intended to be a substitute for a thorough reading and understanding of applicable HUD/FHA handbooks, guides, and mortgagee letters.