USDA Appraisals are required for all USDA Loans to ensure the value of the property is accurately determined. The Loan Originator should order the Appraisal within 2 business days of the USDA determination that the property is acceptable. Depending on property location will determine the price of the Appraisal order. It is important that your Appraisal comes in as high as possible due to the fact that you have the ability to borrow 100% of the purchase price. USDA rural housing loans are only for primary residence and must be in livable condition. Appraisals must comply with Uniform Standards of Professionals Appraisal Practice.
Appraisers cannot use factors such as age, sex, religion, disability, and/or family in valuing the property. The Appraiser makes judgments about the property’s value based on location, market value, construction quality, and amenities. The Appraiser must accurately report the conditions observed at the property and follow HUD standards. If they are any repairs needed the Appraiser will inform you by completing and supplying an Appraisal Report. The Appraiser will make mention so that everything is functional with no obsolescence.
Your Appraiser will examine mechanical, plumbing, and electrical systems to ensure that they are in proper working order. As the Appraiser is not a home inspector, they are only turning on and of these systems and do not make determinations on their mechanical worthiness. This examination consists only of turning on the applicable systems and based solely off of observation. This is done so that a determination could be made of the systems proper working abilities.