An appraisal is one part of the reverse mortgage process.  Since reverse mortgages also known as HECM’s are FHA insured loans, FHA requires the home to meet particular standards, not only in value, but also condition.  Knowing ahead of time what an FHA appraiser will be looking for will increase your potential for best value consideration ~ and a quicker funding of your HECM.

Here’s what an appraiser includes as part of the appraisal report:

  • An inspection of the interior and exterior of your home
  • Ensure lead-based paint is not present and making sure there isn’t any cracked/peeling paint
  • Check for cracks, leaks, or damage to the exterior
  • Make sure the walls and ceilings are in good condition
  • Check the condition of fixtures and appliances
  • Check the heating and cooling systems for safe operation
  • No exposed wiring
  • Roof not in need of repair
  • Proper drainage
  • Make sure there are no hazards in the home
  • Make sure that gas, water, sewage, and electric are safely functioning
  • Will take photos of the front, back, and sides of your home

What happens if, for example, there is a small area under an outside eave that has peeling paint?  The appraiser will require the peeling paint be corrected.  What happens if you can’t make the repairs?  There may be an opportunity to have your HECM funded with a cash hold back for the repairs.  Once the repairs are completed the remainder of any held back funds will then be made available to you.

Providing unrestricted access to your home will help the appraiser put together the report quickly.  The quicker your appraisal is completed, the sooner you can access your hard-earned equity!

Interested in learning more about how a reverse mortgage HECM might benefit you?  For a prompt, professional response please complete the interest query on our Home Page.