FHA Guidelines & Requirements 3

Question 1

Under FHA guidelines, what is the required approach when appraising a property that has a private well as its water source?

Accepted Answer

Require water quality testing to meet EPA or local health authority standards

Answer

FHA requires that private well water be tested and meet EPA or local health authority safe drinking water standards.

Question 2

What is the FHA appraiser's required action when an individual septic system is present on the subject property?

Accepted Answer

Note the system and require inspection only if evidence of system failure exists

Answer

FHA appraisers must note the septic system and recommend inspection only when observable signs of failure are present.

Question 3

For FHA appraisal purposes, what is the minimum clearance required between the bottom of the floor joists and the ground in a crawl space?

Accepted Answer

24 inches

Answer

FHA MPRs require at least 18 inches of clearance between the ground and the bottom of floor joists in crawl spaces, but commonly the standard referenced is 18 inches; however HUD handbook 4000.1 states access and 18-inch clearance are required.

Question 4

When completing the 1004 URAR for an FHA loan, the appraiser must use comparable sales that:

Accepted Answer

Are as similar as possible in location, size, and condition to the subject

Answer

FHA requires comparables to be the most similar and proximate sales available, prioritizing similarity over arbitrary distance or time limits.

Question 5

Under FHA guidelines, what must an appraiser do when the subject property is located within a Special Flood Hazard Area (SFHA)?

Accepted Answer

Note the SFHA location and require flood insurance as a condition of the loan

Answer

FHA requires the appraiser to note SFHA location; FHA then mandates flood insurance be purchased as a loan condition.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Guidelines & Requirements 3