THE BASIS POINT

Second Appraisal No Longer Required on FHA Loans Above $417k

 

HUD announced today that second appraisals are no longer required for FHA loans above $417,000. Previously, the guideline stated that anyone receiving an FHA loan greater than $417,000 AND making a down payment of less than 5% would need to have two appraisals done on the property as part of the loan approval. FHA eliminated this as of their announcement today.

As with all FHA, Fannie and Freddie loan guideline changes, each individual lender has the right to add their own guidelines to these base requirements. So it’s not a foregone conclusion that all lenders will only require one appraisal for $417k+ FHA loans with less than 5% down. Many lenders may in fact elect to keep their guidelines the same, so consumers need to make sure they’re clear on the requirements their lender is asking for when they’re applying for an FHA loan (or any loan).

 

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