When you pursue a Home Equity Conversion Mortgage (HECM) loan, your lender will require an appraisal of your home. Unlike home appraisals you may have an encountered in the past, the appraisal for a HECM loan serves two purposes:
In your home’s appraisal report, the HUD-certified appraiser will include the findings of the inspection, including a list of “deficiencies.” These deficiencies are repairs that must be made for the health and safety of residents or for the marketability of the home. Some homeowners complete needed repairs before an appraisal occurs; however, if you can’t make repairs before the appraisal, your loan officer may be able to offer options to finance the cost of repairs into your HECM loan.
Following are some of the most common repairs a HUD-certified appraiser may identify that require repair for the HECM loan.
This list gives an idea of the most common repairs. The appraiser may identify other issues or problems that also might need repair or replacement. If you have questions about your appraisal, please contact your loan officer for more information.
These materials are not from HUD or FHA and were not approved by HUD or any government agency.