FHA'sÂ minimum standards are much different today though.Â Â Currently, HUD only requires the repair of conditions that exceed cosmetic and minor defects or normal wear and tear.Â FHA Appraisers must still report all readily observable property defects.Â The lender's FHA Underwriter must then use professional judgment to determine if any of those property conditions requires any repair prior to closing.
FHA now permits an "As Is" appraisal for existing properties where minor defects are found, provided that they do not affect the safety of the occupant or the security and soundless of the property.Â Â Some examples of minor property conditions which no longer automatically require repair include:
Property conditions which may require repair are those which may pose a risk to the health or safety of the occupant or the soundness of the property.Â Any of these items may require repair prior to closing.Â Some examples of items automatically requiring repair include:
For the exterior of the home, one of the biggest areas of concern is peeling or flaking exterior paint or exposed wood.Â There should also be no wood to earth contact.
FHA Appraisers are still required to test all plumbing, electrical, and heating/air systems.Â For this, all systems must be turned on a prior to the arrival of the Appraiser.Â The Appraiser is not allowed to turn on any breaker boxes, water shut off valves, temperature controllers, etc.Â This means that hot/cold water must flow from all faucets, all toilets must flush, and the heating/air system must heat or cool (whichever is appropriate for the season).Â This all must beÂ properly functioning as soon as the Appraiser enters the property.Â
Should everything not be functioning properly, a final inspection will be required and must be cleared by the Underwriter prior to closing.Â Â The final inspection will be paid for by the buyer and the approximate cost is $150.Â With the number of REO properties on the market today, many of them may not have all systems already on and functioning properly.Â It's always a good idea to do a walk through and check everything prior to the Appraiser's visit.
Save your self time and money by ensuring everything is ready to go for the Appraisers visit.
It is always advisable to consultÂ with aÂ knowledgeable lending professionalÂ when navigating today's turbulent mortgage and real estate marketplace.Â I am committed, qualified and equipped to help you evaluate your options!
Also check out:
HomePath Financing Mortgage Program Overview/Updates
Rodney Mason is aÂ SR Loan OfficerÂ located in Atlanta, GA.Â He is also 203K Renovation Loan and HomePath REO Property Specialist.Â He can be reached at (404) 591-2453.
Providing financing for cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,Â Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,Â Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.
Providing financing for cities across Alabama including: Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.
NMLS #151088 - Licensed in AL & GA.