An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. These loans are very popular because they allow people with lower credit scores to purchase a home.
According to the 2015 FHA appraisal guidelines, properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser.
The appraiser must complete the (minimum) following steps
Visually inspect the subject property both inside and out.
Take photos of the property to be included within the loan file. The photos must show the sides, front and rear of the home, as well as any value-adding improvements such as a pool or patio.
Take photos of each comparable sale transaction that is being used to support the appraisal.
Obtain and provide a copy of a street map that shows the location of the property and each comparable sale, or “comp,” used during the valuation.
Take photos that show the grade of the lot, if it’s a proposed construction.