Recently we attended a seminar which updated minimum property standards for FHA financing. If you are considering buying or selling a home using a FHA loan, you might want to be aware of things that a FHA appraiser might look for.
The following items should be repaired prior to appraisal, if possible:
– Large settlement cracks, sagging floors or roofs or significant deteriorated wood.
– If a home was built before 1978, it could contain lead based paint, and any peeling, chipping or chalky paint must be scraped, primed and painted. Use tarps to collect paint chips to avoid contaminating the soil.
– The property must have a permanent heat source and it must be operating properly.
– Generally speaking, a roof with less than two years life is usually considered “worn out” and will require repair or replacement.
– Access to both the attic and crawl space is required, and both must have adequate ventilation. The crawl space must have a minimum of 18 inches clearance throughout.
– If the home has a well or septic, make sure to let the lender know immediately, as FHA has certain steps and guidelines they follow (such as with regard to distance, operation, etc.).
– If the property is a condominium, the project must have at least 51% owner occupied units. Other requirements may also need to be met, such as whether or not the development is a “FHA Approved Development”.
This is, of course, not an exhaustive list of everything that FHA might require, but it is a good guide to get started.
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