The article begins by answering the question “Can I Get a Second FHA Appraisal?” with a simple yes. The article goes on to explain that anyone who is looking to purchase a property utilizing the FHA loan program can request a second appraisal for various reasons.
The primary reason to obtain a second FHA appraisal is when an individual or entity disagrees with the appraised value set forth by the original appraisal. If the initial appraisal is lower than the offered price, it can result in the lender refusing to provide the FHA loan, leaving the buyer without the necessary funds to buy the property. In this case, obtaining a second appraisal can make the difference between the sale going through or not.
The process of obtaining a second appraisal varies depending on the situation. It is important to understand the rules and regulations set forth by the FHA in order to more easily obtain a second appraisal. For starters, the buyer must enter into a written agreement with the lender that states why they are requesting a second appraisal, as well as any additional costs stemming from the second appraisal. Additionally, the buyer must also provide proof that they are paying all costs associated with the second appraisal.
In some cases, the lender may be willing to pay all or some of the costs of the second appraisal. This is more the exception than the rule, however, and it depends completely on the lender; if the lender agrees to cover the costs of the second appraisal, they will usually require proof that the buyer has exhausted all other options prior to requesting a second appraisal.
If the buyer elects to pursue a second appraisal, there are two ways to do it: the buyer can either hire the same appraiser as the initial appraisal or they can hire a different appraiser. The advantage of the former option is that the buyer will be familiar with the appraiser’s methodology and reporting methods, making it easier for them to spot discrepancies between the two appraisals. However, this option can be more expensive and time-consuming than the latter option, which involves hiring a new appraiser to perform the second appraisal.
Overall, obtaining a second FHA appraisal can be difficult, but it can sometimes be necessary. In order to successfully do so, it is important to understand the rules and regulations set forth by the FHA, as well as the advantages and drawbacks of using the same appraiser vs. hiring a new one. It is also important to consider any additional costs that may be associated with the second appraisal, as these could significantly affect the overall cost of the appraisal process. Ultimately, careful consideration should be taken when considering whether or not to request a second FHA appraisal.
This article was contributed on Dec 31, 2023
