When a buyer is using an FHA loan to close on a home they, and the sellers should be aware of common FHA required repairs prior to signing an offer.
In all reality the Sellers should be made aware of these items PRIOR to even listing the property. If the listing is a traditional listing repairs with a high likelihood of causing FHA issues should be taken care of. If the property is a short sale the listing should contain a list of probable FHA requested repairs, and a notice that buyers using an FHA loan may be required to pay for repairs prior to closing. If the property is a bank owned home the listing agent should inform their asset manager up front of any needed repairs. Of course all of this applies only if the property is in a price range that is likely to encounter FHA buyers.
So, what are the most common repairs required by FHS prior to closing? It will depend on the age of the home and a few other factors. Here is a list that can be relied on 90% of the time.
1) If the home was built prior to 1978 and there is chilled paint, it will likely need to be repaired. This includes interior and exterior areas (door frames, sheds, walls, decks, etc)
2) The roof should have 3 years of life left, and no more than 2 layers of shingles. Just an FYI... If an appraiser requires roof repairs they must be certified by a licensed roofer. I have had repairs made by unlicensed roofers in the past to save money, and then paid a licensed roofer about $150 to certify the work.
3) Moisture Damage, and existing moisture will probably need to be remediated. If a basement wall is damp often the repair is as simple as correcting the grade of dirt around the home, adjusting sprinklers to not spray the home, or fixing rain gutters and down spouts.
4) Infestations. Mice, roaches, and bats are the most common issues in Utah. Other areas will have other issues. Take care of anything like this prior to listing the home.
5) Major home systems that are not working such as electrical, plumbing, heating, hot water, etc.
In Utah there is an FHA addendum that buyers will use indicating an amount that a seller will be responsible to pay if an FHA repair is needed. Effective Agents will ALWAYS inspect a home prior to listing, and point out probable, and possible repairs.
Are you a buyer or seller with FHA repair questions? Call an Effective Agent today 801-805-4900.
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