FHA Appraisals are now valid for only 120 days from the date on the Appraisal! FHA will grant a 30 day extension, if the the Closing Date on the Sales Contract is longer than 120 days, but the Loan must be appoved by the Lender prior to the original 120 day expiration date.
I recently attended a FHA Bi-Monthly Conference Call, mainly because of two topics being covered, the resent FHA Monthly Mortgage Insurance Premium (MIP), and the Minimum Cash Investment and Secondary Financing. However, there was one additional topic that was covered which caught my attention, the 25 most often asked questions that FHA has received through there Resource Center. The #1 question which has been asked almost twice as much as any other question is Do FHA Appraisals Expire? FHA has received this question through their Resource Center 4,923 times. So I figured that if FHA has been asked that question that many times, then it might be worth making the answer available to this question here on ActiveRain.
FHA provided an answer to this question which is in my opinion is way to long, and complicates what I consider to be a simple answer. So here in my blog I will not give the complicated FHA answer, I will keep it simple.
Prior to January 1, 2010 FHA appraisals were valid for six months, but from January 1, 2010 to the present, FHA appraisals are now only valid for a 120 days from the date on the appraisal. FHA will grant a 30 day extension if the the Closing Date on the Sales Contract is longer than 120 days, but the Loan must be appoved by the Lender prior to the original 120 day expiration date..
FHA also has a very limited provision for the transfer of an appraisal if the Borrower begins the loan process with one Lender, but ends up switching Lenders before receving an approval. The need to switch Lenders could be for a number of reasons, but the two main reasons would most likely be, because they were denied by the original Lender, or became dissatisfied with the original Lender. This provision is very limited and it is the exception not the norm. Even though a transfer of a FHA appraisal may be possible, many Lenders will require a new appraisal to be done. Also the 30 day extension is not allowed should the transfer of an appraisal be granted.
Do FHA Appraisals Expire? Yes at 120 days, with a possible 30 day extension.
Info about the author:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or firstname.lastname@example.org
Frederick Griffin, Licensed Florida Real Estate Broker
Fred is on Leave of Absence from the ActiveRain Community,
effective January 2019
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Tallahassee Florida Metropolitan Area
Disclaimer: Nothing in the above blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.