California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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Who generally initiates an FHA appraisal for a property?

  1. The borrower

  2. The Federal Housing Administration

  3. The lender or broker

  4. The buyer

The correct answer is: The borrower

The correct initiation of an FHA appraisal is typically done by the lender or broker. The lender is responsible for ensuring that the appraisal meets the requirements set by the Federal Housing Administration. This process ensures that the property meets the necessary qualification standards for FHA financing, and the lender orders the appraisal to protect their interests in the loan. While homeowners or borrowers do have a role in requesting an appraisal, it is the lender who ultimately coordinates and pays for it, ensuring that the appraisal process adheres to FHA guidelines. Therefore, the most accurate answer reflects that the lender or broker initiates the appraisal process, as they handle the FHA loan's requirements on behalf of the borrower.

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