Finance

Oklahoma buyers using FHA financing should be aware that FHA appraisals serve a dual purpose:

AOnly establishing value for the lender
BEstablishing market value for the lender AND identifying property condition issues that must be repaired to meet FHA Minimum Property Requirements before the loan can close✓ Correct
COnly identifying repairs needed by the buyer
DSetting the insurance coverage amount only

Explanation

FHA appraisals simultaneously establish market value and assess whether the property meets FHA's Minimum Property Requirements (MPR) for safety, soundness, and habitability. Properties with safety or structural issues must be repaired before FHA financing can be approved.

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