By Michelle K. Hogan
The Federal Housing Administration (FHA) insures mortgages that FHA-approved lenders give to home buyers. The FHA encourages lenders to lend money to home buyers by paying the claim should the home buyer default on her loan. Because the cost of the insurance is passed on to the home buyer in the form of monthly payments worked into their mortgage, not as much cash is required from the buyer to purchase a house. In addition, FHA lenders can be more flexible calculating income eligibility and payments. In order to provide this service, the FHA has to be sure that the homes they are insuring are well made; therefore they require their appraisers to be certified and very experienced.
Become certified in your state as a residential real estate appraiser. In order to become an FHA-appraiser, you will first need state certification as an appraiser. This is different from a just a license. A state certification requires 200 hours of education as well as an associates degree or higher covering these subjects: English composition; economics (micro or macro); finance; algebra, geometry or higher mathematics; statistics; computer science; and business or real estate law. Some colleges offer real estate appraisal certifications and degrees. After completing your education and state testing, you will need to gain 2,500 hours of experience in under 24 months.
Make sure your certification is in good standing by doing your job ethically and well, paying all fees associated with your certification and taking continuing education classes to keep your certification up to date. To be in good standing, you cannot be listed on any federal sanctions lists, including Excluded Parties List System (EPLS), HUD’s Limited Denial of Participation (LDP) list, or HUD’s Credit Alert System (CAIVRS).
Fill out the application for FHA appraiser online. You may not use a paper copy. If you were an FHA appraiser in the past and are not one currently, you must apply for a reinstatement, not as a new applicant. After completing the online application, print the application form HUD-92563 from FHA Connection (FHAC), sign it, scan it and save it in PDF format. You must also scan your state certification and save it in PDF format for upload to the application website. Be sure to enter in all of your information exactly as it appears on your state certification.
Helpful Links:
FHA Appraiser Application Instructions: http://www.hud.gov/offices/hsg/sfh/appr/appl_instr.cfm
Appraisal Foundation: Becoming an Appraiser: http://www.appraisalfoundation.org/s_appraisal/sec.asp?CID=148&DID=206
