FHA – Second Appraisal: Is the lender allowed to charge the borrower for a second appraisal if the underwriter finds the first one deficient?
Answer: Your underwriter has made their determination regarding the deficiency of the appraisal so a new appraisal must be ordered. This is not going to be an expense for your borrower. FHA prohibits charging the borrower for the second appraisal. The lender must pay for it. Reference: 4000.1 Section II.A.1.a.iii.(B)(9)(a) A second appraisal may only be [...]