Pointer Appraisal Northeast Ohio Property Economics & Appraisal Blog

A local Realtor® called our offices this week in regard to the specifics of how appraisals are performed for 203k loans.  

A 203k loan is an FHA loan which provides the borrower funds to make repairs and rehabilitate a property.

The appraisal is usually ordered by the lender and includes a list of the improvements which are to be made and the contractors bid for the repairs.  The appraiser considers the repairs and prepares the report with the hypothetical condition that repairs have been made.  This is known as a "subject to" appraisal. 

We have seen many borrowers who have benefitted from the equity created by this program and gained a property with the amenities they desire.  With the present amount of foreclosed properties on the market, the 203k program seems to be growing in popularity.

We here at Pointer Appraisal Services extend our wishes to everyone for a Happy and Prosperous New Year. In order for our staff to celebrate, we will be closed after 5:00 PM New Years Eve and will reopen Friday 1.2.09 at 8:00 AM.

Please Celebrate Safely!