Can a Mortgagee use a conventional, VA, or USDA appraisal in EAD?

If a Mortgagee obtains an appraisal for a conventional, VA or USDA loan, and then decides to switch to an FHA-insured mortgage, they can have the appraiser provide a new appraisal report that complies with FHA and Electronic Appraisal Delivery (EAD) requirements, including the FHA case number in the appropriate location.
 
If the appraiser did not follow FHA protocols when inspecting the house, the Mortgagee may have to go back to the appraiser to update the appraisal so that it meets FHA requirements.  In either case, it’s a new assignment for the appraiser.

HUD Policy Determination
 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03341