Function

• The FHA appraisal is a report---complete with written findings and photos---of the property to be insured. It's function is to determine the value and physical condition and location of the property. FHA protocol requires an appraisal inspection for all new FHA loans---except streamline refinances---to determine whether a property is eligible for insurance.
  
  

Identification

• FHA appraisal protocol can be found online through the HUD website. HUD offers an online resource called HUDCLIPS, where appraisers, lenders and borrowers may access appraisal guidelines and policies. The most popular literature for FHA protocol is the FHA Handbook 4150.2, titled Valuation Analysis for Single Family One- to Four- Unit Dwellings.
  
  

Warning

• FHA makes revisions to appraiser protocol according to changes or trends in the market. New requirements for appraisers are documented and announced in mortgagee letters, which can be accessed through HUD's website, before the revisions are made to FHA Handbooks. The mortgagee letters are sent to lenders, advising them of the changes, their effective dates and other details required for FHA compliance.
  
  

Features

• The FHA appraisal protocol addresses health and safety issues that may affect occupants. Appraisers must inspect the home's mechanical, electrical and plumbing features to ensure they are properly functioning and their condition does not pose a hazard. A property's utilities---gas, water and electricity---must be turned at the time of appraisal inspection.
  
  

Types

• FHA appraisal protocol applies to single-family and multi-family housing, including condominiums. Properties may be under construction or completed. For homes under construction, the appraiser must include a photo of the vacant lot and a map of the proposed roadways around the home. Appraisals for existing homes requires photos of the exterior, interior and street, as well as a map and photos of comparable properties used to determine value.
  
  

FHA Roster Appraisers

• Appraisers eligible to perform appraisals for FHA loans must be approved and on the FHA roster. Eligible appraisers are not required to be licensed, but they must be state-certified, according to HUD.