FHA Loans - Stoves NOT Required

With the REOs out there, it isn't unusual to run into home where the appliances moved out with the former owners. Unfortunately these foreclosure bargains are also in the price range of many hoping to use FHA loans. There was a general opinion out there that a stove had to be in the home for it to meet the minimum standards for FHA. I've run into this some time ago, and found that in 2006 there where changes made and that appliances in general were no longer required, but only noted if they were there on the new Fannie Mae Uniform Residential Appraisal Report - Form 1004.

For those that still don't believe that stoves are NOT required by FHA, here's a response directly from them.

Thank you for contacting the FHA Resource Center.  Below is a summary of your request and our response.
 
If this issue is not resolved to your satisfaction, you may reopen it within the next 2 days.
 
Thank you for allowing us to be of service to you.
 
Subject
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FHA Loan Questions
 
Discussion Thread
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Response (James Talley) - 06/11/2008 04:13 PM
Thank you for contacting the FHA Resource Center.  Please see the following response to your inquiry.
 
Must a new or existing home have a stove in order to be eligible for FHA financing?

Neither a new home nor an existing home has to have a stove in order to be eligible for FHA financing.
 
DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.
  
For further assistance please contact the FHA Resource Center at hud@custhelp.com or by calling 1-800-225-5342 (1-800-CALL-FHA). 

In addition to this, cosmetic repairs were also changed. This from the New Appendix D Valuation Protocol

Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser.

Appendix D is found here

For a general idea of plain English guidelines, subject to the appraisers discretion, this Florida site may give you a better idea of what is or isn't required for FHA loan qualification.

FHA Checklist at this Website - Found in Menu on Left of Page

Hope this helps to clear up some of the confusion for you and your clients!


If you are interested in relocating to Las Vegas or would like information on Las Vegas real estate, please email me roberta@search4lasvegashomes.com  or call me at 702-354-8988.  I look forward to hearing from you!

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