Arizona Appraisal RegulationsPhoeni Appraisal Regulations

Arizona’s mortgage related appraisal regulations have changed over the past few years.  Each different type of home loan has it’s own unique appraisal guidelines and specific property condition  related requirements.

This page will help you understand how appraisers are assigned, how long appraisals take and how property condition requirements work for each different type of Arizona mortgage loan.

I: AZ Lenders CANNOT Choose an Appraiser

One of the most significant appraisal related changes that applies to each and every different home loan option available (FHA, VA, Conventional, USDA and JUMBO) and to every mortgage company in the market is that a mortgage company cannot hand pick an appraiser for any transaction.  The borrower is also not permitted to choose the appraiser that will appraise the home being financed.

Appraisers must be randomly selected

Instead of the mortgage lender selecting an appraiser, the appraiser must be randomly selected and the loan officer may not have any input with regard to which appraiser is assigned to the transaction (VA mortgage guidelines have utilized this type of selection process and they are in control of assigning appraisers on VA transactions).

There are 2 methods that an Arizona mortgage company can manage random appraiser assignment:
1. Maintain a neutral appraisal desk in-house (this is the option The HOUSE Team utilizes)
2. Utilize an outside/3rd party appraisal management company

II. Appraisal Turntimes

Each independent appraiser’s turn time is slightly different and may be impacted by their workload, the size and scope of the property being appraised, the distance of the property from the appraiser’s location and the complexity of the overall report.  Below are general time frames for appraisal completion.

FHA: 4-7 business days
Conventional: 4-7 business days
USDA: 4-7 business days
VA: 7 business days (in the Arizona marketplace – other marketplaces may have different turntimes)
JUMBO: 5-7 business days

III. Property Condition Requirements

Every mortgage sets forth its own unique property condition requirements.  The appraiser is charged with accessing a homes value and with accessing general property condition per mortgage specific guidelines.  Two of the most unique property guidelines belong to FHA and VA mortgages.  Click on the link(s) below to learn more about FHA and VA home loan property condition guidelines:

opens in a new windowVA Mortgage Property Requirements

opens in a new windowVA PROPERTY REQURIEMENTS

opens in a new windowFHA Property Requirements

opens in a new windowFHA PROPERTY REAUIREMENTS

Property condition is an important part of the overall Arizona mortgage approval process.  It is important to have a clear understanding of how the property being financed will be viewed by the underwriter approving the borrowers loan.  Any condition noted by an appraiser for not meeting mortgage related property condition guidelines will need to be remedied either before closing or after closing using an escrow holdback.   Only certain repairs are permitted to be fixed using an escrow holdback and each different type of home loan has it’s own specific escrow holdback regulations.

The HOUSE Team is here to help you understand and resolve any property/appraisal related issues that you may come across.  Please contact us for help.  Team Phone:  602.435.2149   Team Email:  Team@JeremyHouse.comcreate new email

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