FHA Repair Requirements
This is important information on FHA Appraisals & FHA Repair Requirements. In today's market, we think in terms of Cash trumping Conventional Loans and Conventional Loans trumping FHA loans (in order of preference); however, if your listing/property meets these FHA requirements, it is fairly easy to close on an FHA loan - in fact, I've seen them close in as short as 8 days!
The latest FHA Repair Requirements have been around since early 2006, but I still frequently get a number of questions on what is presently required by FHA. So I figured that it was about time to post a blog on what are the mostly things that will be identified by Appraiser as required FHA Repairs on a appraisal.
FHA Repair Requirements that are regularly identify as required repairs on FHA Appraisals are generally related to property conditions that MAY represent a risk to the health and safety of the occupants or soundness of the property such as:
- Inadequate access/egress from bedrooms to exterior of home
- Defective paint surfaces in homes constructed before 1978
- Roofs that the Appraiser identifies as possible having less than two years left on them
- Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing)
- Evidence of structural problems (such as damage caused by excessive settlement)
- Leaky or missing pipes
- Wood Rot
- Exposed Wires/Electrical
- Open Electrical Box
- Working Mechanicals (heat, water, etc)
- Hand Dug Well (will grant exception)
- Wells Within 10’- 0” of House (will grant exception)
- Wells Within 75’- 0” of Septic System (will grant exception)
Examples of MINOR property conditions that are no longer AUTOMATIC FHA Repair Requirements:
- Missing handrails
- Cracked or damaged exit doors
- Cracked window glass
- Minor plumbing leaks (such as leaky faucets)
- Defective floor finish or covering (badly soiled carpeting)
- Rotten or worn out counter tops
- Crawl Space with debris or trash
- Defective paint surfaces in homes constructed after 1978.
Examples of tests that may no longer be REQUIRED:
- Wood Destroying Infestation Report-required ONLY if the Appraiser observers possible evidence of ACTIVE infestation
- Well (Individual Water Test) - is not required unless there is knowledge that well water may be near a sources of contamination
- Septic Test- is not required unless there is evidence of system failure.
I hope that helps to clarify what FHA Repair Requirements may or may not be required on a FHA Appraisal today.
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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