House Requirements for FHA loan ~ Hampton Roads Real Estate Ramblings

House Requirements for FHA loan

Monday, May 31, 2010

Hello Hampton Roads,

Many home buyers and home sellers have wondered, "What are the house requirements for FHA loans?"

FHA loans are a popular low-down payment loan of choice for buyers and in our market, many buyers have used these loans.  It is helpful to have an idea  if the home you  are buying or selling may meet the minimum requirements for FHA qualification

HUD's website provides good information about property FHA qualifications by letting us know what an appraiser will look for; this information and more can be found under their Homeownership Center Reference Guide .  By having an idea what to expect in advance, sellers can pre-empt issues by taking care of them upfront and buyers will have an idea of the items that may need to be addressed in order for them to obtain an FHA  loan on the property.

Some examples of what is required for a home to pass an FHA appraisal are as follows:

Property must be free of Hazards and Nuisances--that may:

  • Affect the health & safety of occupants,
  • Affect the structural integrity of the property
  • Affect the customary use and enjoyment of the home
Required Repairs
These are repairs that are necessary to preserve the property and it's occupants are known as the 3 S's:
  • Safety---repairs required to protect the health and safety of the occupants
  • Security--repairs to protect the security of the property/security for the FHA insured mortgage
  • Soundness--repairs to correct physical deficiencies that affect structural integrtiy
Utilities Must Be On
The appraiser is required to test the mechanical, plumbing and electrical systems of a house and the utilities must be on in order to do this.  These systems must be in working order and if an appraiser cannot determine if a system is not working properly, then he or she may call for a certification of the system.

Roofs
Roofs must prevent moisture from entering dwelling and there should be no damage or leaks. The roof should also provide future utility--the roof should have a remaining physical life of atleast 2 yrs.  Regarding re-roofing FHA will allow a max of 3 layers. If there are 2 layers and repairs are required, then all old roofing must be removed prior to re-roofing.

Attics
Attics must be accessible and inspected

Crawl spaces
Crawl spaces must be accessible and inspected.  They must be free and clear of debris, not excessively damp and adequately ventilated.

These are just a few common examples of house requirements for an FHA loan but they should give you a good idea as to what to expect regarding the the condition of the property.

I can help with your real estate needs, please feel free to drop me line and Happy Memorial Day weekend!


Thanks for Reading,



_________________________  
Serving your Hampton Roads and Virginia Beach Real Estate needs.