Government Lending Tip of the Week

FHA "as is" appraisals  

FHA now permits an "as is" appraisal for existing properties when minor property deficiencies are present.  These deficiencies generally result from deferred maintenance and normal wear and tear.  Examples of these would be:  missing handrails, cracked or damaged exit doors, cracked window glass, minor plumbing leaks and rotten or worn-out countertops.

As long as the defects do not hinder the Safety, Security, or Soundness of the property, the property is eligible for FHA financing without requiring they be repaired. NOTE:  Foreclosed properties may require further evaluation.