Is required for all FHA Arizona mortgages. The appraiser must be on the FHA’s approved list. The lender will choose one of the FHA approved appraisers to conduct the appraisal. The borrower is never allowed to select the appraiser. However, the borrower pays for the appraisal. The appraiser who is chosen to do the appraisal is the only one who can perform and sign the appraisal report.

Appraisal Guidelines

The Arizona licensed appraiser must follow certain FHA guidelines when making the appraisal. For instance, the appraisal must be done on a form 1004, reference the appropriate FHA file number and include an estimate of the property’s economic life. Pictures of the front, rear and street view of the home must be included in the appraisal. The appraisal must also provide information on comparable sold properties for the last three years. To meet FHA underwriting guidelines, information about the date the seller purchased the home and the amount the seller paid for the home must be included in the appraisal if the seller has owned the home for less than one year prior to the borrower’s application. Other information that may be required form the seller are costs of improvements and any third party contributions or concessions. The appraiser is required to make any adjustments where necessary. Sellers are allowed to pay the buyer’s non-recurring closing costs up to six percent (6%) of the purchase price.

Approved FHA Condos

If you are looking at buying a condo, then you need to make sure that the condo building or complex is on the approved FHA condo list. Your Arizona mortgage broker or Arizona Realtor can check the building to make sure it is approved before you make appointments to view properties so you are not wasting your time or anyone else time. There are many Arizona condo units that have been on the FHA approved list for decades but have recently fallen off the approved list.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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