FHA appraisals are a little bit different than Conventional Loan appraisals are. The guidelines are stricter, but don’t let that get in the way of accepting a great offer if your home is in good condition.
Here are some of the safety and structural items that might appear on the appraiser/FHA inspection report requiring a remedy before the buyers’ loan can be approved:
- Shingles that have less than 3 years of life left
- Asbestos
- Lead paint/peeling paint. (In any place where there is peeling paint, it needs to be scraped/repainted, and paint chips disposed of prior to the inspection.
- A handrail may need to be added if there are 3 steps or more and the top of the stoop is 30” or higher
- Rotting wood
- Deterioration to counter tops
- Plumbing leaks
- The home must have a reliable heating system that is in working order
- The location of the home must be away from a hazard (highway/waste/excessive noise can pose problems)
- Inoperable doors
- Lack of bedroom egress
- Structural issues
- Mold
There are homes on the market that will not pass an FHA appraisal. When a sellers accept an offer with an FHA finance type, one advantage for the seller might be that their buyer may be less tempted to back out of the transaction, being their buying options are more limited than a cash or conventional borrower’s are.
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