is California state certified and on the FHA Roster of approved residential appraisers. This indicates that we are qualified and approved by the FHA to do appraisal reports for house loans underwritten by them. A portion of the ongoing training our staff at McDonough Appraisal Service receives deals precisely with understanding the FHA's documentation and their rules and procedures.
The FHA is the Federal Housing Administration, which is a federal agency in the United States Department of Housing and Urban Development (HUD); if your loan is an FHA-secured loan, it means it is secured by them. The FHA does not loan money to borrowers. Rather, it provides lending agencies with security through mortgage insurance in case the borrower defaults on his or her loan obligations. Low-income and moderate-income consumers benefit the most from FHA-backed loan programs. The point of the Federal Housing Administration is to assist credit-worthy buyers get approved for mortgages that they otherwise would not. Unlike the VA appraiser panel, the lending organization working with Federal Housing Administration actually has the freedom to select the appraiser.
Typically, a buyer has to pay less of a down payment on an FHA-insured loan, while the rates remain standard market rates. The loan programs that the FHA provides are lifesavers to consumers with minimal starting income.
