FHA, USDA, and VA loan programs all have specific property requirements that must beet in order to obtain a home loan. Some of the more common issues are;

• Utilities not being on at time of inspection
• The heating system is functioning properly
• No permanent heat source that is operated by a thermostat
• Water not being turned on
• Chipped paint – any flaking or chipped paint typically needs to be scraped or painted prior to closing
• No safety hand rails on stairs or steps

When the appraisal report is completed and the property needs repair, the repairs must be completed prior to closing. A second appraisal is then needed to prove that the repairs are completed. The second inspection can result in additional fees and out of pocket costs.

An experienced and knowledgeable real estate agent will typically know what is required and advise you accordingly. Rarely do we see cases where a real estate agent was unaware of the needed repairs and therefore the clients are always well prepared. The bank will always do it’s best to review the property through listing images and other data available but this does not guarantee a property will pass inspection. A property listing is typically the best photos available to help sell the property which makes it difficult for a bank representative to know if a property will be acceptable to FHA, VA, or USDA.

To avoid property condition issues as much as possible always seek advice from your real estate representative or ask your mortgage representative to take a closer look. By taking the right steps up front, you can put yourself in the best position possible to have a smooth loan process.

Feel free to call (518) 324-5544 if you have any additional questions. Our goal is to help educate you on the home buying process.