What is the appraisal procedure for identifying structural conditions?

The appraiser must report on structural conditions so that the Mortgagee can determine if the foundation and structure of the property will be serviceable for the life of the mortgage.  The appraiser must perform a visual observation of the foundation and structure of the improvements and report those results.

If the appraiser notes any structural issues, the appraiser must address the nature of the deficiency in the appraisal where physical deficiencies or adverse conditions are reported and require inspection. 

Instructions detailing specific requirements for reporting the results of the appraisal are found in the FHA Single Family Housing Appraisal Report and Data Delivery Guide at https://www.hud.gov/program_offices/housing/sfh/handbook_references

For additional information see Handbook 4000.1 II.D.3.i.  at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-04065