Yes. If there is an air conditioner at the subject property, it must be in working order for HUD to guarantee the loan. What if the air conditioner was stolen (that happens quite a bit with bank-owned properties)? If there is clearly supposed to be an air conditioner at the house, then it must be installed and working. Often times the owner or bank will install a new one before the close of escrow to meet this requirement. The gist is that FHA does not require an air conditioner in a house, but if one is there (or should be there), then it must work properly. Does that make sense?
If you have any questions, let me know. I am an FHA approved appraiser in the Sacramento Region and I can be reached at 916-595-3735 or www.LundquistCompany.com.
www.SacramentoAppraisalBlog.com Does FHA Require the Air Conditioner to Work?