FHA REPAIR REQUIREMENTS
As a seller, don't be frightened if your buyer has presented you an offer with FHA financing. Prior to 2005 sellers were reluctant to accept an offer from a buyer who was obtaining an FHA loan. The main reasons were FHA required too many repairs before the loan could close and the seller often ended up paying for those FHA repairs. Since then, FHA repair guidelines have softened.
It is not a bad idea to take a look at the list of possible repairs prior to listing your home for sale and make these repairs, just in case.
An FHA appraiser will make an appointment to appraise and inspect the property. (this is different than the home inspection the buyer will have) A report will than be presented to the bank. Any repairs will need to be completed by the seller immediately, because the FHA appraiser will need to re-inspect the property to insure these repairs have been completed.
Types of FHA Repairs That Must be Completed Prior to Closing an FHA Loan
- Peeling paint in homes built before 1978.
- Unpainted downspouts and broken rain gutters.
- Rotting out-building in need of demolition.
- Exterior doors that do not properly close and open.
- Exposed wiring and uncovered junction boxes.
- Major plumbing issues and leaks.
- Inoperable HVAC systems.
- Leaky or defective roofs, roofs with a life expectancy of less than 3 years, composition over shake.
- Active and visible pest infestation.
- Rotting window sills, eaves, and support columns on a porch.
- Missing appliances that usually are sold with a home such as a stove.
- Bedrooms without minimize-sized windows or bedroom windows with bars that do not release.
- Foundation or structural defects.
- Wet basements.
- Evidence of standing water in the crawl space.
- Inoperable kitchen appliances.
- Empty swimming pools, pools without a working pump and pools with mosquito fish.
- Ripped screens.
- No pressure relief valve on water heater.
- Leaning / broken fence.
Types of FHA Repairs That are Not Necessary to Fix Before Closing
- Peeling paint in homes built after 1978.
- Cracked glass in windows.
- Minor plumbing defects such as a dripping faucet.
- Missing handrails.
- Damaged wall coverings in homes built after 1978.
- Worn out carpeting or defective floor finishes.
- Beat-up or damaged exterior doors that still open and close.
- Trip hazards such as heaving sidewalks.
- Removal of debris under the house.
- Lousy workmanship.
- Evidence of previous or inactive pest infestation.
- Replacement of flat roofs.
- Testing of wells, unless required by local jurisdictions or water is suspected of contamination.
If you are thinking of selling your house in the future, take a look at the list and make those repairs prior to listing it. If you have any questions, please contact your local realtor.