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What do FHA appraisers do during property appraisals?

A young couple looks at the house they purchased using an FHA loan. Appraisals are required for FHA loans.

FHA loans are currently one of the most common mortgage financing choices among homebuyers in California and Texas. FHA loans are supervised by the Department of Housing and Urban Development (HUD). Because of this, HUD defines all of the regulations for FHA loans in California, including home inspections and appraisals.

While many believe the opposite, an FHA loan does not require a full home inspection. HUD does strongly encourage it, and they provide a disclosure that describes the worth of a home inspection. Nevertheless, the inspection is not required in California or Texas.

On the other hand, a property appraisal is required for FHA loans. A home inspector’s primary concern is the health of the property, such as necessary repairs, but an appraiser’s primary focus is the market value of the property.

In California and Texas, FHA appraisers assess the current market value of the home, along with its condition. In this way, the appraiser gets two jobs done in one.


In California and Texas, FHA property appraisers generally focus on potential problems for the occupant’s health and safety.

The appraiser will do a simple examination of the home’s electrical system to make sure it’s working properly, and there won’t be any hazards for the homeowner.

They will also inspect the plumbing system to check for leaks that could damage the property over time.

The appraiser also checks the heating to makes sure it can function without any problems.

FHA appraisals will also check for encroachments. An encroachment develops when one home’s structures invade another person’s property. For example, if a neighbor’s patio crosses the line into the subject property, the FHA appraiser might prevent the loan from moving forward.

You can find out more about FHA appraisal inspection guidelines by reviewing the HUD handbook 4000.1.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167