FHA Appraisal Transfer

There are cases where a mortgage loan borrower applies for a FHA insured mortgage loan with a mortgage company but for one reason or another, the FHA insured mortgage loan gets denied during the mortgage underwriting process.  When this happens with a bank or mortgage banker, the mortgage loan borrower needs to apply elsewhere where they are willing to take the mortgage loan borrower.  If the FHA insured mortgage loan borrower has already paid for a FHA appraisal on a subject property, does the mortgage loan borrower need to order a new FHA appraisal?   The good news is NO.   What the new mortgage lender can do is request a FHA appraisal transfer from the old mortgage lender.

FHA Appraisal Transfer Process

If your mortgage application is moved from one mortgage loan lender to a different mortgage lender, the first mortgage lender needs to transfer the FHA case number to the second mortgage lender by requesting the FHA appraisal transfer through logging into the FHA mortgage website and requesting the transfer of the FHA case number to the new mortgage lender.  Most FHA mortgage lenders have no problem in doing this in a timely manner.  This is a very simple process which only takes minutes to do and is normally executed from a processor of the first mortgage lender.  There are no fees associated with the FHA appraisal transfer.

Who Does The FHA Appraisal Transfer?

FHA appraisal transfer is normally done between the mortgage lenders and there is nothing the mortgage loan borrower needs to do or sign.  The new mortgage lender’s mortgage loan originator will be handling this through his or her mortgage loan processor.

Need To Request FHA Appraisal Transfer Early

Many times when a mortgage loan borrower switches from one mortgage lender to a second mortgage lender,  it is due to the fact that something went wrong with the first mortgage lender and the second mortgage lender is normally rushed to get the file processed, underwritten, and cleared to close.  Many times I have come into situations where the second mortgage underwriter is about to issue a clear to close but the FHA appraisal transfer has not been done yet.  FHA appraisal transfer can be done and executed in a matter of minutes but many times trying to get of the first mortgage lender or the mortgage loan originator getting back to the second mortgage lender causes delays which can cause a delay in closing a mortgage loan file on time.  Make sure that you take care of the FHA appraisal transfer request the minute the mortgage loan borrower switches to the second mortgage lender so this simple task will not haunt you later.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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