Conventional Loan Appraisal Requirements | Appraisal Guidelines
Looking to see if a property meets conventional loan appraisal requirements? Conventional loan roof requirements seem to be the most common issues when it comes to appraisals. Going over a conventional loan appraisal checklist can be cost effective to prevent any extra fees associated with an appraisal.
Appraisal Guidelines – Condition and Quality
Your property will receive an overall condition and quality rating that is selected by an appraiser that best reflects the property as a whole and its entirety. The rating is selected on its own merits and not on how other properties compare. The property must meet condition requirements for the loan program. A conventional loan appraisal will receive a rating between C1 through C6.
Deficiencies Cannot Affect the Following:
- Structural integrity of the property
Properties that are based on an “as is” condition and do not have these deficiencies are eligible for financing. When a property is “subject to,” usually there are deficiencies that make the property ineligible for financing. “Subject to” requires completion of the items, a re-inspection, and the appraiser to clear the deficiencies on the appraisal.
Conventional Loan Appraisal Checklist
Wood-boring insects (termites), dampness, and abnormal settlement can affect the marketability off the property.
Additions that do not have a required permit require the appraiser to comment on the work and assess the impact of the market value.
An appraiser can mark an appraisal “subject to” when they are not an expert in a field and they are not qualified to decide if the property is in need of immediate repair. Examples of adverse conditions include:
- Active roof leak
- Curled or cupped roof shingles
- Inadequate electrical service or pluming fixture
- Settlement of a foundation issues
- Environmental hazards
- Water seepage
- Other factors
The appraisal will be appraised “subject to” an inspection by a qualified professional.
Other deficiencies that affect the safety, soundness, or structural integrity of the property can cause a conventional loan appraisal to be “subject to”.
Conventional Loan Roof Requirements
In some cases, if an appraiser notes that there is an active roof leak, curled or cupped shingles, the appraisal will require a qualified professional to inspect the roof. The qualified professional will comment on the overall quality and it would be subject to review to meet conventional loan roof requirements.