Property conditions for FHA mortgage approval are an important part of the mortgage transaction. FHA property guidelines are put in place as a form of protection to all parties who have an interest in the transaction. FHA ‘s minimum property standards are designed to include the safety, security and soundness of the home. In other words, the home must protect the safety and health of all those that occupy it and cannot have any deficiencies or conditions that affect the sturdiness of the structure.
It is the FHA appraiser’s duty to check the property and report his findings, which includes necessary repairs, renovations and deterioration, on the FHA appraisal. FHA does not require that all deficiencies be repaired. Some of the items that do not need to be tended to prior to closing are cracked glass, damaged doors, defective paint, minor plumbing issues, worn flooring, worn out counters, damaged plaster, walls or ceilings.
In order to meet FHA approval, there are many items that must be remedied prior to closing. Some of these issues are electrical boxes that have exposed or frayed wires must be replaced, all rooms that will be lived in must have a heat source, the water heater must meet local building codes, the property must provide safe and adequate access including from the road, there must be a toilet, sink and shower and any asbestos found must be inspected by a professional. The appraiser must look in the attic in order to determine roofing issues. The roof must be expected to last at least 2 years and keep moisture out during that time period. The roof cannot have more than three layers of roofing and, therefore, if any problems are found with a roof that has three or more layers, an entire new roof is required. Property conditions and location are also looked at for any potential hazards such as contaminated soil, oil and gas wells on the property, distance to hazardous waste sites, airports and other sources of noise, distance to high voltage power lines or radio and TV transmission towers. Any structural deficiencies or conditions that can lead to future damage, such as leakage, decay, termites and dampness, must be also be repaired in advance of closing.
FHA appraisers are approved by FHA and, therefore, are knowledgeable about the terms of the FHA mortgage and the requirements of the FHA appraisal. Often, when adverse conditions are found, many home buyers will find themselves searching for another property since no arrangements could be made with the seller. Although this may seem like an inconvenience, property conditions for FHA mortgage approval are there to protect the borrower who is looking for a pleasant place to live that does not reveal a lot of costly problems after closing.
