FHA Loan & Appraisal

[Ryan D]

I have a FHA loan lined up to purchase a property but the property I am interested in has one issue with the foundation in the garage. The house is built into a hill and the garage is basically part of the basement. Where the ground has shifted during a heavy rainstorm some of the cinder blocks in the garage have cracked. The current owner said it has been like that for a year or so and the wall hasn't shifted any more. She also said that she had someone look at it who told her it wasn't an issue that needed to be fixed right away. I have heard that when getting an appraisal for an FHA loan the appraisers are pretty picky. One of the things I was told was be sure the paint looks good. Does anyone think this issue with the wall will prevent me from getting the FHA loan and therefore the property? I plan on getting the inspection but am more worried about the appraisal as I am not exactly sure how that works with an FHA loan.

[Jon Holdman]

I'd be more worried about the unstable foundation than the bad appraisal. Have you had it evaluated by a foundation person? The seller has a very strong incentive to minimize the issue, and leave you holding the bag for a major problem.