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Does FHA Require Appliances-Fact or Myth

By Michael S. Bolton

Real Estate Appraiser with Michael S. Bolton,Inc.

March 11, 2012 10:15 PM

Sometimes I find myself scratching my head wondering how some of these myths get started in the first place. FHA doesn't require appliances, all they require is a cooking area. However, if there are appliances already at the property, then they'll have to be operational and meet local safety codes.

HUD-MPR states in 2-9 SPACE REQUIREMENTS. Each living unit must be provided with space necessary to assure suitable living, sleeping, cooking and dining accommodations and sanitary facilities.

Now keep in mind some lenders have overlays (their own requirements) that will require that appliances be present prior to closing, and operational. That’s the lenders call, not the appraiser’s or HUD's.

So if your listing a home for sale and there's appliances within the house that don't work, and the seller isn't going to fix them, then I suggest having them removed prior to listing the home.

The photo used for this article was licensed from iStockPhoto.

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Cindy Edwards

RE/MAX Checkmate - Johnson City, TN

CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Thank you Michael for making that clear. I have heard that FHA requires a stove, but have never been in the situation where I needed clarification.

Mar 11, 2012 10:21 PM

LaNita Cates

REMAX of Joliet - Joliet, IL

This was NOT true actually. FHA and VA required a stove for YEARS. I can even find the old information somewhere...so yes, it was a requirement because I saw it on the appraisal. It is only recently they stopped. And do you know why? Because the banks finally wised up and realized in 90% of the situations of a bank-owned property, they was no stove and they had to put one in. THey finally realized it was costing THEM money so they stopped requiring.

Mar 11, 2012 10:22 PM

Chuck Carstensen

RE/MAX Results - Elk River, MN

Minnesota/Wisconsin Real Estate Expert

Good reminder here. I think I used to think that they needed appliance. In fact when selling new homes I think this came up once or twice.

Mar 11, 2012 10:29 PM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

LaNita has a point there. I also remember a stove requirement. Thanks for pointing out the current requirements.

Mar 11, 2012 10:29 PM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

As you correctly stated, appliances are not a requirement. The truth is, in many FHA financed properties are worthless anyway, so no point in using a value.

Thank you for sharing the post with all of us.

Mar 11, 2012 10:37 PM

Kathy Sheehan

Bay Equity, LLC 770-634-4021 - Atlanta, GA

Senior Loan Officer

The key here is that the property must meet HUD standards anything above that would be an investor overlay.

Mar 11, 2012 10:57 PM

John McCormack, CRS

Albuquerque Homes Realty - Albuquerque, NM

Honesty, Integrity, Results, Experienced. HIRE Me!

Thanks for clarifying this fact Michael. In the past I've had buyers that actually rented appliances to get a home closed. Have a great day in all you do my friend.

Mar 12, 2012 12:10 AM

Roy Kelley

Retired - Gaithersburg, MD

Good advice for home sellers and their agents. Sometimes, it is just better to discard an old refrigerator that does nothing to add value.

Thanks for your tips.

A carnation for you....

Mar 12, 2012 12:14 AM

John M. Scott

BRE # 01442690, Scott Keys Properties - San Francisco, CA

Broker / Owner San Francisco Bay Area

Thanks for the clarification Michael. But I guess it does come down to what each lender will require.

Mar 12, 2012 03:36 AM

Lindsey Hasford

Edina Realty - Elk River, MN

Bringing you home...

That's good information. I can't tell you how many appliances we've installed because FHA required it...

Mar 12, 2012 04:12 AM

Michael S. Bolton

Michael S. Bolton,Inc. - Zimmerman, MN

MN Appraiser

Your welcome Cindy!

Hi Lanita, Before I post an article I always research to see if I can find the source of some of the misinformation that's out there, so I'll take your word that it used to be a requirement. My FHA manual is dated 1999 and it's not in there, and I couldn't find it any of FHA MPR's. Thanks for your comment and input.

Hi Lyn, Yes, I guess the important thing is that they're not required.

Joe, I will say that I do a lot of HUD REO appraisals, and I'm surprised sometimes at the great condition some of them are in.

Great point Kathy!

John~That's a clever way of getting a house sold, as long as the buyers don't want the appliances. :)

Hi Roy, thanks for stopping by.

Hi John, I think Kathy said it best (#6) that the property needs to at least meet FHA's minimum requirements.

Lindsey~I've had some very experienced appraisers tell me things that they require for FHA appraisals that I just can't believe, and I wonder where they come up with that stuff.

Have an AWESOME day!

Mar 12, 2012 10:11 AM

Rob Thomas

Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN

Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Michael ...That's a great information ....this is really good for everyone to remember ...Thanks!

Have a great day in MN!

Mar 12, 2012 08:55 PM

Michael S. Bolton

Michael S. Bolton,Inc. - Zimmerman, MN

MN Appraiser

Hi Rob~Thanks for stopping by, very much appreciated!

Make it an AWESOME day!

Mar 12, 2012 09:17 PM

Adrian Willanger

206 909-7536 AdrianWillanger-broker.com - Seattle, WA

Profit from my two decades of experience

Michael, thanks for demystifying the some of the FHA and bank appliance regulations. Very good information for homeowners and agents.

Mar 13, 2012 12:07 AM

Michael S. Bolton

Michael S. Bolton,Inc. - Zimmerman, MN

MN Appraiser

Thanks Adrian, I'm glad you found it useful.

Make it an AWESOME day!

Mar 13, 2012 11:34 AM

Virginia (Ginger) Schott

Cabins & Canoes - Port Jervis, NY

Assoc. Broker, CBR, CHMS

I should have come to Active Rain First!!! Thanks Michael for clearing that up. I am presently in that situation and just called FHA to verify. Would have saved alot of confusion if I had come to you first!

Jul 30, 2012 11:41 PM

Michael S. Bolton

Michael S. Bolton,Inc. - Zimmerman, MN

MN Appraiser

Hi Ginger,

I'm glad you found the info useful, and I hope everything works out for you.

Have an AWESOME day!

Aug 01, 2012 02:13 AM