FHA Repairs in Black and White
October 14th, 2009 categories: Real Estate Selling
In today’s real estate market, the majority of the buyers are financing their purchases with FHA loans.
For those of us who have been in real estate for awhile (1980’s) the FHA requirements are not new. However the demands made by FHA often surprise sellers who thought they were done with repairs after the home inspections. The FHA appraisal is not an inspection-but may lead to some additional repairs to your property. Our loan officer recently shared with us the 12 most common items sellers must complete for the mortgage to be approved.
According to FHA, the purpose of a repair is to correct deficiencies which may affect the health and safety of the occupants or the continued marketability of the property. Sellers in the know can correct the potential problems prior to marketing their property or at the latest prior to the FHA appraisal.
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If the home was built prior to 1978, (lead paint time) chipped or peeling paint must scraped and painted. This includes interior, exterior, garages, sheds, fences……
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Any useful components (furnace, appliances, floor coverings, etc) should have 2 years of useful life remaining. The roof falls into the same time frame and cannot have more than 3 layers of shingles
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Broken windows and doors need to be repaired or replaced
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No negative drainage issues (water draining toward dwelling). Correct problems which may include fixing downspouts and gutters or cutting french drains
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Health and safety hazards- ie: electric garage door won’t reverse. GFIC outlets are not a FHA requirement. (sometimes there are exceptions to this rule)
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Inoperable abandoned wells must be capped and sealed by a licensed well contractor
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Safety handrails should be installed in open stairwells with three or more stairs
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Any infestation (insects, mice, bats, rodents etc.) should be exterminated by licensed contractor
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All plumbing, electrical and heating systems should be in good working order
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Structural or foundation problems must be repaired
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Flammable storage tanks must be removed and filler cap sealed from the inside (usually old buried oil tanks)
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Crawl space must be accessible for inspection- homeowners need to “clear the way”
Good news-most of these items are standard “honey do” items that most sellers tackle before they market the property.
Whether you live in West Chester, Cincinnati or Mason FHA loan requirements will impact you! If you need more information about FHA -let me know.
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