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FHA Minimum Property Standards

Common FHA Appraisal Issues and How to Fix Them

From the low down-payment to the flexible property requirements, FHA loans are a very popular choice in Plattsburgh, NY.  From millennials to investor’s, a loan through the Federal housing authority is a great option to meet the needs of the ever changing market.  Although FHA doesn’t have the strictest property guidelines they do have the meet HUD minimum property standards.  Among them is having the property you wish to buy appraised and inspected. The appraisal will determine the market value of the property and the inspection will verify that the property meets the FHA’s minimum health and safety standards. Any issues that fall outside of the FHA’s minimum standards will need to be squared away prior to closing.  The good news is that most problems that do not meet guidelines can be fixed relatively easy.  At the end of the day It is up to the Appraiser to decide what does, or does not meet FHA guidelines, this list should be seen as a resource, not a definitive guide.

Ready to purchase a home with 3.5% down? Let’s start the home buying journey together. 
If you prefer to learn more about a No Money Down Home Loan (USDA Loan) read our informative guide.

 
Recommended Reading

Paint

Due to lead paint health concern’s, a home cannot have any evidence of peeling or chipped paint if lead is present.

Commonly Found In: Homes Built prior to 1978

How To Fix It:Repainting or removal of all chipped and flaking paint is required

Utilities

All outlets, plumbing, lights, appliances, cooling, and heating systems must be operable and up to code at the time of inspection

Commonly Found In:Vacant properties, Short sales, Pre-Foreclosures, Bank owned properties

Resolution: Anything requiring repair must be repaired or replaced to bring the house up to local building and HUD Code.

Windows

The U.S. Department of Housing and Urban Development (HUD) require that barred bedroom windows without exterior access must have a security release hatch.

Commonly Found In: Garden units and Street level units in Urban Area’s

Resolution:Windows without the security release hatch must be modified or new windows installed

Handrails

All steps and Stairway’s above 3 step’s must have handrails

Commonly Found In: Properties with more than one floor or a elevated/lowered main entrance

Resolution: Handrails must be installed near steps and stairway’s that do not have them

Well, Water Supply and Septic System

The Well or septic tank and Leach lines must be properly equipped, Identifiable, up to code and an acceptable distance from the property lines and any sources of pollution

Commonly Found In: Rural properties, Older Properties

Resolution:These system’s must be updated, replaced or money held in Escrow if they fail a water test or distance test.

This is another website that goes even more in depth with appraisal issues and fixes.

FHA appraisal issue tips

If a lender ever turns you down because of these or other problems request a free consultation and we can do our best to save the day.  While your here check out some other great articles.

FHA Mortgage- Frequently Asked Questions
The Tax Benefits of owning a home

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