It is important for both homeowners and buyers to know what a FHA/HUD property appraiser will look for. The FHA states that it “has shifted from its historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property conditions that rise above the level of cosmetic defects, minor defects or normal wear and tear.”
The FHA inspection covers Safety, Security, and Soundness issues with the home. The age of the home has nothing to do with whether the home will pass or not. But the inspector is going to make sure that all electrical outlets near water are GFCI protected. The weatherhead and fuse box are in working order, no wiring is exposed. The roof, siding, and foundation are sound. There is no paint chipping or peeling which could be ingested by a child. The water heater, plumbing, and all fixtures are working. That the house is secure, no broken doors or windows which could affect the safety of the occupants.
To often we realtors spend our time telling our clients why they can not buy a home with an FHA 203b loan. In these days of tight money, lenders are reluctant to finance homes with the FHA 203k repair loan. The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased. If the home is a foreclosure then the loop is endless.
CP06-03
FHA Repair and Inspection Requirements and Appraisal Protocol Revisions
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Examples of minor property conditions that no longer require automatic repair
Requirements for existing properties include, but are not limited to:
• Missing handrails
• Cracked or damaged exit doors that are otherwise operable
• Cracked window glass
• Defective paint surfaces in homes constructed post 1978
• Minor plumbing leaks (such as leaky faucets)
• Defective floor finish or covering (worn through the finish, badly soiled
• carpeting)
• Evidence of previous (non-active) Wood Destroying Insect/Organism
• damage where there is no evidence of un-repaired structural damage
• Rotten or worn out counter tops
• Damaged plaster, sheetrock or other wall and ceiling materials in homes
• constructed post- 1978
• Poor workmanship
• Trip hazards (cracked or partially heaving sidewalks, poorly installed
• carpeting)
• Crawl space with debris and trash
• Lack of an all weather driveway surface
As a reminder: Examples of property conditions that may represent a risk to the health and safety of the occupants or the soundness of the property for which FHA will continue to require automatic repair for existing properties include, but are not limited to:
• Inadequate access/egress from bedrooms to exterior of home
• Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing)
• Evidence of structural problems (such as foundation damage caused by excessive settlement)
• Defective paint surfaces in homes constructed pre-1978
• Defective exterior paint surfaces in home constructed post-1978 where the finish is otherwise unprotected.
If you are a homeowner selling your home, walk thru the home. Check for problem areas and correct them. If you are a buyer set the HAR search to look for properties which allow FHA financing. The home you are going to buy is one of the biggest investments you will make in your life. The purpose of the FHA inspection is to make sure that you do not make a mistake.
Call Bill Edge at 713-240-2949 to see Houston homes in 24 hours or less.