FHA or the Federal Housing Administration is the country's larget insurer for home loans. It has insured over 34 million homes since its inception adding up to a total of $1 trillion worth of loans.
FHA loans are quite popular too. One of that reason is that it only needs a smaller downpayments in comparison to Fannie Mae & Freddie Mac. Another one would be mortgage rates in this loan type is considerably lower than other options. More info about FHA Loans here.
Basically it's more popular because it's less strict when it comes to credit, income, and assests reviews. However there's one area that remians strict on and that is on property condition. FHA will not a home when it doesn't meet its basic safety and hability requirements. Here are some of these requirements.
It should be a marketable and complete home
Homes must exist as a single marketable piece of real estate. Therefore a loan may only be insured to an entire home not just a bedroom or a kitchen.
Public access
The property must accessed without having to trespass another home/property. If the property isn't accessible in public ways, an easement must be associated with that property.
Safe access
Homes must be accessible from vehicles or pedestrians coming from public or private passways. If the passways are private, this must be maintained by the home owners association or with regard with homeowners.
No hazards
FHA insures homes that are free of health and safety hazards. This includes pollution, radioactive, and mudflow problems. If these do exist, however, owners can provide evidence that the danger is mitigated and resubmit your application.
Construction
FHA-insured homes must be free of defective elements or show signs of poor worksmanship like leakage, decay or anything that might impair its safety, sanitation, or structional soundness.
Number of rooms
The property must have at least satisfactory amount of space for living, sleeping, cooking, dining. It also must have proper sanitary area such as a bathroom with shower/bathtub.
Check out more guidelines on The Mortgage Reports.
These standard might be a little tasky but it's meant to protect both homeowners and the FHA itself. What do you think of these Property Standards? Feel free to leave your thoughts below. And, oh! call our office with the info below if you'de like to ask more questions about loans like this.
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