An FHA home means he or she will not be burdened with ruinous repair bills from the start, and – as a fundamentally sound place to live – provides more incentive to make payments during difficult financial times to keep it.
If you’re purchasing a home using an FHA loan, or if you’re selling a home to a buyer who’s using an FHA home loan for the purchase, then you need to know about the FHA home requirements. We’ll discuss why these minimum property standards exist, what some typical requirements are, and what can be done if the home you’re buying or selling fails to meet the requirements.
Before we get started, let’s review the FHA loan process. It can be broken down into the following steps:
The property appraisal is an important step in the process as it has everything to do with making sure that the house meets the minimum FHA requirements for homes.
The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders. insuring these loans has helped tens of millions of families purchase homes since the 1930s. FHA home requirements are also set forth to:
When the FHA insures your loan, your house is the collateral. If you stop making your mortgage payments, your lender will foreclose on your home, taking possession of it in order to sell it and get back the money lent for the mortgage.
Since the FHA insures your loan, it is in their best interest to insure the home is worth the money being lent. Therefore, FHA home requirements are set, which must be met in order to qualify for an FHA loan. This insures that the lender can get a good price for the house in case of foreclosure. It also insures that new homeowners aren’t faced with many home repairs early on in their home buying experience.
Before closing, an HUD-approved appraiser will come to the home. Using a form called the Uniform Residential Appraisal Report, the appraiser will go through the home answering specific questions about the property. This includes basic features of the house, like the address, square footage, number of rooms, and year it was built, as well as a condition rating for each area of the house, including the mechanical systems, appliances, exterior, interior, and attic.
The condition rating scales from 1-6. A score of 1 means the item is in excellent condition. A 3 is well maintained with normal wear and tear. A 4 starts to show signs of deferred maintenance and physical deterioration. And a 6 means substantial damage with defects and deficiencies severe enough to affect the safety, soundness, or structural integrity of the property. If there are any physical deficiencies or adverse conditions, these are also noted on the appraisal form.
For a condominium, the appraisal form is similar but includes questions about the homeowner’s association (HOA), HOA fees, special assessments, and common areas.
Any areas in need of repair will be indicated on the form and must be repaired for the FHA loan to be approved.
HUD has accepted the model building codes, including over 250 referenced standards, and local building codes, in lieu of separate HUD standards. Inspections are meant to identify physical deficiencies that can affect:
This checklist may help you understand FHA MPR guidelines that may be an issue. According to HUD Handbook 4150.2, the property must be free of all known hazards and adverse conditions that:
Here are some common areas that the FHA focuses on and may require you or the seller to repair prior to closing.
The mechanical, plumbing, and electrical systems of the property must be inspected to insure they are in proper working order. This includes the heating and cooling systems.
This includes inspection of the foundation walls, exterior walls, windows, screens, roof surface, gutters and downspouts, and weather insulation.
While inspecting the attic space, the appraiser is looking at the insulation, ventilation, and the condition of the roof structure. He or she is looking for deficient materials, leaks, evidence of significant water damage, structural problems, previous fire damage, exposed and frayed wiring, or any other health and safety deficiencies.
Amenities and Features
Any amenities or features, such as fences, patios, decks, pools, or porches will be inspected for safety.
The floors, walls, and trim throughout the house will be inspected. Keep in mind that normal wear and tear will not be required to be repaired.
Appliances that come with the property, such as a refrigerator, oven, dishwasher, disposal, microwave, and washer and dryer, increase the value of the property and are included in the inspection. Appliances should be in working condition.
The FHA states that the home should be free from hazards, including:
Lead Paint and Asbestos
If the housing was built before 1978, lead paint hazards must be addressed and corrected. Asbestos in the building material can also be an issue and may require further inspection and removal.
New construction and houses less than one-year-old must comply with the CABO Model Energy Code, 1992 Edition, for residential buildings.
Normal wear and tear, minor defects, cosmetic conditions, and aesthetic imperfections that do not affect the working condition of the item are not required to be repaired. The FHA cites examples like worn off finish on wood floors, dead grass, or soiled carpets. Other examples include:
Yes. However, keep in mind that required repairs are limited to the repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants. If an item is functioning well but is old, that does not warrant replacement. Likewise, items suffering from cosmetic imperfections, such as cracked windows, are not required to be repaired.
Typically, the buyer will make a request to the seller to fix the items required to be repaired under FHA guidelines. If the seller agrees, then the items are usually fixed at the seller’s expense before closing.
However, if the seller does not agree to the repairs, and the buyer is dependent on an FHA loan, then the property cannot be purchased. One way to get around this is to offer to raise the sale price of the home in order to reimburse the seller for the costs of the repairs. Getting a non-FHA loan could also remedy the issue. Another option is to apply for an FHA 203(k) loan, a program through HUD that would allow you to purchase a home in need of repair using an FHA loan.
florida mortgage, florida mortgage rates, florida mortgage claculator, florida mortgage broker, florida mortgage lender, florida mortgage compamny, mortgage broker near me, mortgage brokers near me, orlando mortgage, orlando mortgage rates, the villages mortgage, the villages mortgage rates, the villages mortgage lender, the villages mortgage broker, naples mortgage, naples mortgage rates, naples mortgage lender, naples mortgage broker, florida keys mortgage, florida keys mortgage rates, florida keys mortrgage lender, florida keys mortgage broker, cape coral mortgage, cape coral mortgage rates, fort myers mortgage, cape coral mortgage lender, cape coral mortgage broker, fort myers mortgage rates, fort mayer mortgage, fort myers mortgage lender, fort myers mortgage broker, sanible island mortgage, sanibel island mortgage rates, sanibel mortgage lender, sanibel mortgage broker, anna maria island mortgage, anna maria island mortgage rates, anna marie mortgage lender, anna maria mortgage broker, clearwater mortgage, clearwater mortgage rates, clearwater mortgage lender, clearwater mortgage broker, bonita springs mortgage, bonita springs mortgage rates, bonita springs mortgage lender, bonita springs mortgage broker, marco island mortgage, marco island mortgage rates, marco island mortgage lender, marco island mortgage broker, st. augustine mortgage, st augustine mortgage rates, st. augustine mortgage lender, st. augustine mortgage broker, st. augustine beach mortgage, st. augustine beach mortgage rates, st. augustine beach mortgage lender, st. augustine beach mortgage broker, tampa Bay mortgage, tampa bay mortgage rates, tampe bay mortgage lender, tampa bay mortgage broker, st. petersburg mortgage, st. petersburg mortgage rates, st. petersburg mortgage lendser, st. petersburg mortgage broker, bradenton mortgage, bradenton mortgage rates, bradenton mortgage lender, bradenton mortgage broker, bradenton beach mortgage, bradenton beach mortgage rates, bradenton beach mortgage lender, brandenton beach mortgage broker, sarasota mortgage, sarasota mortgage rates, sarasota mortgage lender, sarasota mortgage broker, longboat key mortgage, longboat key mortgage rates, long boat key mortgage lender, long boat key mortgage broekr, key west mortgage, key west mortgage rates, key west mortgage broker, key west mortgage lender, key largo mortgage, key largo mortgage rates, key largo mortgage lender, key largo mortgage broker, isalamorada mortgage, islamorada mortgage rates, islamorada mortgage lender, islamorada mortgage broker, big pine key mortgage, big pine key mortgage rates, big pine key mortgage lender, big pine key mortgage broker, marathon fl mortgage, marathon fl mortgage rates, marathon fl mortgage lender, marathon fl mortgage broker, upper keys mortgage, upper keys mortgage rates, upper key mortgage lender, upper keys mortgage broker, lower keys mortgage, lower keys mortgage rates, lower key mortgage lender, lower keys mortgage broker, apalachicola mortgage, apalachicola mortgage rates, apalachicola mortgage lender, apalachicola mortgage broker, st. geoerge island mortgage, st. geoerge mortgage rates, panama city mortgage, st. geoerge island mortgage lender, st. geoerge island mortgage broker, panama city mortgage rates, panama city mortgage, panama city mortgage lender, panama city mortgage broker, panama city beach mortgage, panama city beach mortgage rates, panama city beach mortgage lender, panama city beach mortgage broker,
Fidelity Home Group
4700 Millenia Blvd Suite 175, Orlando, FL 32839
Hours of Operation:
Monday - Friday 8am to 7pm EST
Saturday - Sunday 10am to 6 pm EST