An Appraisers Perspective on FHA Reverse Mortgage Appraisals

As an approved FHA appraiser I have had occasionand general roof maintenance which has been
to provide many appraisals for people requesting anprovided. The FHA appraisal requirement of '2 years
FHA Reverse Mortgage. While the basic appraisalremaining life' is somewhat a judgment call on the part
process does not differ, it is a good idea for peopleof the appraiser, who will be familiar with appearances
requesting an FHA Reverse Mortgage, also known asand with what is typical for the area. However, it may
a HECM (Home Equity Conversion Mortgage) to knowwell be that a certification by a roofing contractor is
what to expect when the appraiser comes to therequired. If a roof has less than 2 years of remaining
house.life it will become a condition of the appraisal that it be
An FHA appraisal is really no different than a standardreplaced and this becomes a significant factor which
conventional appraisal as far as the value conclusion ismust be considered when applying for an FHA
concerned. However, more emphasis is placed uponReverse Mortgage (HECM).
the structural integrity of the home, and on any healthOther. generally less costly, repairs may be required,
and safety issues that may be present. For example,however the roof issue is certainly the most likely to
and probably the most well known of any FHAbe a consideration. The other potentially major issue
appraisal condition, the roof must still have at least 2could be an unsound foundation affected by water
years of serviceable life remaining. This will quiteand/or infestation.
probably be the biggest issue that may be faced byThis article is not by any means intended to reference
owners who have been in their homes for manyany and all conditions that may arise as a result of an
years, have not replaced their roof, and decide toFHA appraisal, but is intended to make people aware
apply for an FHA Reverse Mortgage.that the overall condition of their home will play a part
The serviceable life of any roof is a function of thein the ultimate approval of an FHA Reverse Mortgage
type and quality of materials, the climate of the area,(HECM).