Conventional Loan vs FHA Loan Appraisal?

Hi,

I am purchasing a short-sale home, and I'm considering between an FHA mortgage or a conventional, but I have been warned that the FHA appraisals are way more strict. The short sale has a 30-day close policy, so time is of essence.

There are a few things that I feel that appraiser may notice:

--Certain spots of the roof are near the end of their life and will need repaired soon

--The railing on the stairs to go up stairs is a little wobbly and needs a post placed in the center to add extra stability

--Same stability issue on some of the posts for the railing of the deck in the back yard.

Would any of these three things kill the FHA appraisal over a conventional appraisal?

4 Answers

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  • Bob
    Lv 6
    9 years ago
    Best Answer

    FHA appraisals are not as strict as they used to be and the things that you mentioned could cause a problem with either one. If the railings are wobbly chances are the appraiser will notice and it will require repairs. If the roof problems are visibly obvious they will cause a problem either way too.

    You can still get 5% down conventional financing in most areas, but it is harder to get approval for conventional PMI than it used to be and it can make a conventional loan take longer to approve than FHA. I actually had a 15% down conventional request that was approved by the loan underwriter, but denied by the PMI company. If you have 20% down go with conventional since the terms will be better, but with anything less than 20% down it can be easier to get approved with FHA.

    Source(s): Licensed Loan Officer in Ohio
  • ?
    Lv 7
    9 years ago

    The FHA appraisal is NOT more strict . What they are strict about is the Condition of the property. Short sale homes are sold "AS IS" FHA will not approve the mortgage unless everything is in pristine condition. Conventional loans are 20% down. There is NO 10% down mortgage

  • 9 years ago

    With a conventional loan you will be required to put 10% down.

    If you have this or more, just go with a conventional loan...

  • Rachel
    Lv 4
    4 years ago

    Your correct, when you enter a 10% cash interest the possibilities and endless.

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