What do appraisers look for when doing an FHA appraisal? These days it’s important to be in tune with FHA appraisal standards so your home can be FHA-ready or so you can know what to expect if accepting an FHA offer. Let’s talk through some of the most common FHA issues below. You can also download an FHA checklist to study or share with clients. This checklist has all the information from this post as well as one additional page.
NOTE: This blog post was written in 2015, and there may be some slight variations today (2023). For instance, appliances are basically only required if they contribute to value.
DOWNLOAD an FHA checklist HERE (pdf)
The Main Idea with FHA: FHA is primarily concerned that everything in the house functions properly and that there are no health and safety issues. The basic concept of meeting FHA minimum requirements is that everything must work as it was designed to work. For example, a window that is supposed to open must open, and a built-in appliance should do what that appliance is supposed to do. If you have a sliding glass door with a lock on the handle, the lock should work.
What do FHA appraisers look for?
- Utilities should be turned on so the appraiser can test systems and appliances.
- Appliances must function properly.
There should be proper drainage around the perimeter of the house.- The heating unit must be in working order (and AC if applicable).
- Water pressure must be adequate for the house. Appraisers flush toilets, turn on all faucets and ensure that both hot and cold water are working.
- The water heater must be in working order and strapped according to local code.
- Attics and crawlspaces are to be viewed at minimum from the shoulder up by the appraiser. When viewing the attic, appraisers make sure there are vents, no damage, no exposed or frayed wires, and that sunlight is not beaming through. When inspecting the crawl space, appraisers make sure there are no signs of standing water or any other foundation support issues. Excessive debris in the attic or crawl space should be removed.
- Paint must not be chipping, peeling, or flaking on homes built before 1978 because of the danger of lead-based paint (lead was used in paint prior to 1978). However, there must be no defective paint or bare wood for properties built after 1978 because defective paint impacts the economic longevity of the property. Defective paint should be scraped and re-painted (with no wood chips on the soil).
- Electrical outlets must work (outlets should have a cover plate also).
- Toilets must flush and be mounted.
- Any active termite infestation needs to be cured.
- Minor cosmetic issues such as stained carpet or a need for interior paint are okay. The house does not have to be perfect, but if there are issues that impact health and safety or the long-term economic viability of the property, then those issues must be cured.
- Windows must open and close and they cannot be broken. Minor cracks can be okay so long as there is not an issue with safety, soundness and security.
- No dangling wires from missing fixtures or anywhere else.
- FHA doesn’t require air conditioning, but if present the system should work as intended.
- Smoke detectors & carbon monoxide detectors are required insofar as required by local code
- The firewall from the garage to the house should be intact. Missing sheetrock, a pet door installed in the door, a lack of self-closing hinges, or a hollow door could pose a safety issue.
- A roof should not be leaking and needs to have at least two years of economic life left.
- A house will be rejected if the site is subject to hazards, environmental contaminants, noxious odors, or excessive noises to the point of endangering the physical improvements or affecting the livability of the property (this isn’t an issue for the vast majority of properties).
- A trip hazard is a subjective call to make by the appraiser and not necessarily an automatic repair, but if there is a legitimate safety issue it should be called out by the appraiser.
- There are things any appraiser will call out in an FHA appraisal, but there are times when appraisers have to consider how the spirit of FHA might apply in a situation. FHA is black and white on many issues, but other times appraisers simply need to use good judgment.
Reminder About Difference in Locations: Appraisers in different parts of the country may require some items in their appraisals that might not be required elsewhere. For instance, carbon monoxide detectors are required in most residential homes in California, but this is not the case in many other states. An FHA appraiser in a different state might not even mention a CO detector, but in Sacramento it is commonplace.
DOWNLOAD an FHA checklist HERE (pdf)
I hope this was helpful. If you’re looking for more information on FHA appraisal standards, you can check out other FHA appraisal articles I’ve written.
Questions: Anything else you’d add to the list? Any FHA questions? Appraisers, if you have any stories to share about properties that were rejected, speak on.
If you liked this post, subscribe by email (or RSS). Thanks for being here.
Well thought out and comprehensive list. Good work Ryan!
Thank you Mike. Hope things are well with you.
Hi and thanks for the article. I am in the middle of refinancing and I have my garage floor (concrete) ripped out to be replaced. Will this Constuction prevent me from obtains a loan from Fannie or Freddie?
Thank,
Adam
Hi Adam. I’ve never actually encountered that before while doing an appraisal before a loan. I’m highly doubtful there is something in the handbook about this, so I think it would fall under the umbrella of a repair. For FHA I suppose one could argue this is a marketability issue, and the same could be true for both conventional or anything geared toward Fannie / Freddie. I think it’s something an appraiser is going to have to see to make a judgment call bout. If I were you I would maybe share it with a loan officer contact and have the loan officer ask the underwriter. This would maybe give you a little direction before proceeding. I wouldn’t be surprised to see this called out for repair. At the least it would need to be disclosed by the appraiser. If the appraiser does not require repair, it’s always a wonder what the underwriter will do….
Thanks Ryan for the good advice.
Great job putting together a concise FHA checklist. That is a hard thing to do. I’ve tried. Your blog is a valuable resource.
Thanks Gary. I appreciate it. I really enjoy your blog also.
Wood infestation reports are important in our area. Since our state is located in the “very heavy” probability zone on the termite infestation probability map the report is necessary for FHA financing. You’ve got a very comprehensive list Ryan that would be beneficial to all agents.
Great example, Tom. Thanks. If you’re in the Birmingham area, FHA appraisers are probably going to have access to a pest report during each appraisal, whereas that is not the case here in California. Sometimes we get them and other times we don’t, and lenders don’t require them either.
I recently went through an FHA appraisal and the appraiser wrote up the right side of my driveway for being raised from tree roots. The irony is that I currently have an FHA loan on the home and the driveway was in that exact condition when I bought the home 4+ years ago. To be fair, the driveway does stick up about 5 inches. Under what category if any would you put the raised driveway?
Thanks
Jason
Hi Jason. Thanks so much for checking in. I appraised a property recently that had an FHA loan also, and I called for repairs that were clearly not called out before even though they should have been. While this maybe shouldn’t happen, some appraisers might know more than others, and others might not be making calls they should be making. Additionally, appraisers might miss a thing or two during the first inspection (even though that shouldn’t happen). The issue here is whether there is a trip hazard. If the driveway poses an issue to safety, it should be called out, and the problem should be repaired. Personally when I make this call, I say the driveway can be replaced (very expensive) or maybe some asphalt (or another substance) can be built up around the trip hazard. Either one is fine by me. The addition of some asphalt can be instrumental to keep the cost way down. 5 inches sounds like a pretty good trip, but I think too it comes down to the location of the elevated driveway on your lot. Does this make sense?
Thanks for the detailed and timely response Ryan. As much as I’d like to complain, it probably is a legitimate write up. Thanks again.
No problem Jason. Good luck on this.
We are anticipating an FHA inspection for a re-fi. We currently have a rural development loan and my biggest concern is that there is a crack across the kitchen floor that is in the foundation that caused the tiles to hairline crack. It’s been this way since we bought it, with an exterior crack in the pool deck along the same line. We’ve been here for 8 years and there are no other signs of a sinking house such as stuck windows, cracks in walls, etc. I’m a little concerned they will make us “fix” it because it’s the foundation. What are our options?
Hi Barbara. Thank you for reaching out. On one hand cracks are common, but on the other hand sometimes they raise red flags. If for some reason the appraiser is concerned about structural integrity, the appraiser would require a qualified professional to verify there are no structural issues (maybe an engineer?). If there are no issues, there are no repairs needed. But if the qualified professional determined there were repairs needed, the property would have to be repaired to the point it could be said there is structural integrity. Of course the appraiser who inspects the house may not even notice during the inspection. Or maybe the appraiser will notice, but won’t require any further inspection or repairs because it looks minimal and/or like every other house the appraiser has inspected. Does that make sense? I hope so.
There is a crack across garage door openings, insid the doors, is open, will this fail? Is a slab, garage is a 4″ step from house to garage.
Is a slab home.
Hi Ray. It’s not easy to answer this question because I haven’t seen the issue you’re talking about. Cracks can be very different from each other, and almost every house has cracks. They just happen. Appraisers are not crack specialists, but when they see something that might indicate settling or a lack of structural integrity, they need to call out that issue for further inspection and/or repair if need be. The crack in this home might be no biggie, but if the appraiser thought there might be an issue, the appraiser would probably say something like the following, “The appraiser noted a crack in the garage on the flooring. The crack is 1/2 inch thick and extends the width of the garage. The appraiser is not a crack or foundation specialist, and the appraiser recommends further inspection by a qualified professional to verify there are no issues with structural integrity. The opinion of value in this report is subject to there being no foundation or structural integrity issues. The appraiser reserves the right to adapt the opinion of value in this report based on new findings.” In this example the appraiser has rightly shifted the onus of responsibility on a qualified professional. In short, if the cracks look “normal”, the appraiser might simply disclose and not require any adjustments, but if it looks like there might be an issue of some sort, the appraiser might make a call for further investigation or repairs. I hope that helps.
We’ve found a property we love and are pursuing an FHA loan. We’ve been pre-approved but my concern is that the property has a barn from 1848 that is falling down. We would like to take the structure down immediately upon purchased but are afraid the FHA apraisal won’t go through. The seller will not pay to take it down. Is it ever ok to take it down for the seller just to get the loan to go through? Would the FHA care if it’s not near the home and has no potential to fall on the home?
Hi Mal. Congratulations on finding a property. That’s wonderful. FHA says clearly that everything within the parcel lines has to meet FHA minimum property standards. There is a false idea out there that FHA standards only apply to the house, when in actuality they apply to everything within the parcel lines. This means if the barn is falling down, despite being located away from the house, it should be fixed or removed so that it does not pose a safety issue. Honestly though, some FHA appraisers don’t call for these repairs to be made even though they hands-down should based on FHA standards. This means sometimes homes like this sell with a dilapidated structure even though the barn should very clearly be removed or repaired. The appraiser will not care who removes the barn, but only that it is gone and no longer a safety issue. If you can work that out with the seller, that sounds like it might be something that works for the transaction. You may wish to wait until you find out what repairs the appraiser calls for though just to be sure you want to continue with the transaction and/or make the investment. As a side note, I love working with wood, and that barn sounds like a gold mine from a woodworking perspective. 🙂
Please let me know if this answers your question. I’m around if you need anything. Best wishes.
Thanks, Ryan!
We just made the offer to the seller to do the repairs ourselves and remove the barn and are waiting to hear back. Is it common for sellers to accept this type of offer? Honestly, I don’t see why they wouldn’t if we agree to have a licensed contractor do the work at our cost, he’d end up better for it if our sale should somehow not be successful.
We’re just very nervous now. We really want the house.
Congratulations, Mal. I wouldn’t say it is normal for the buyer to make repairs, but it does happen for sure. It’s not unheard of, though most of the time the seller makes the repairs. What is normal is to feel nervous about the transaction. I get that. Worry happens regardless of whether there is a barn or not. It seems like worry comes in stages: 1) worry about finding a house; 2) worry about getting the offer accepted; 3) worry about the loan going through; 4) worry about the appraisal; 3) general worry until the deal is 100% closed. 🙂
For what it’s worth, hang in there. Do your best to be at peace because you cannot control the outcome (this is what I told myself when I recently bought a different house). It sounds like you put together a great offer for the seller in case the appraiser does require removal of the barn.
had a barn that needed to come down while purchasing a home. Called the local fire department and asked if they wanted to use it as a training fire. Barn was gone and fire department was happy to use it.
Ha. I love it Denise. What a great idea.
My husband and I just submitted a bid on a HUD home and it was accepted. We are using a USDA Rural Development Loan and have just been informed that they use the same inspection as FHA. We know there is a toilet leak in one of the bathrooms, obviously HUD won’t fix it nor will they allow for us to fix it before closing. What is the possibility of not passing inspection and not being approved for the loan?
Hi Jessica. Thanks for reaching out. Congratulations on getting your offer submitted. If the appraiser calls for repairs, it will have to be repaired. There is always the chance the appraiser is not going to see the leak, particularly if the leak is slow, so I suppose that would be to your advantage if it was missed. 🙂 If the appraiser does call for repairs, it is going to have to be done somehow. Additionally, if there are other repairs, they will have to be fixed. I’m not sure why HUD would accept an offer when they know there are repairs that are going to be needed. I would let your agent and the listing agent figure out a game plan for how to get this done. Sometimes agents have a “don’t ask don’t tell” policy where repairs get done somehow. Whatever the case, I’m sure they’ve encountered this situation before and can get repairs done in a creative way.
Hi,
I just recently had my inspection done on my potential home in which we will be using a FHA loan. The inspection report came back with marginal maintenance repairs as well as recommended repairs. What advice would you offer to us, the buyers, considering that these are repairs that are going to need to be addressed rather sober not later. Thanks!
Are you talking about a home inspection report or a pest report? It sounds like a home inspection report rather than an appraisal report. As a buyer, I recommend you strongly consider the repairs that are needed and if you have the skills and/or funds to make the repairs in the future when they are needed. Honestly, a home inspection report can sound scary no matter what the house is like because after the inspector is done sharing the contents of his/her findings can make it seem like the house is about ready to fall over. Yet there is a realistic aspect here regarding repairs. If there are some very big looming repairs in the future, do you have the funds available to handle those? Or will the seller possibly discount the price to take into consideration the cost of repairs? Or can the seller repair some of the items now? Or if you really want the house but don’t have the capital to make repairs, can you switch to an FHA 203K loan (a repair loan) so some of these repairs can be padded into the purchase price? (and finished before you move into the home). Just a heads-up, not all loan officers do 203K loans, so you may need to switch to someone who is competent to handle them if your LO does not know what to do. CW, I know some buyers make the mistake of being so excited about a home that they don’t really consider how that roof is going to be replaced in two years or how much it is really going to cost to repair the AC/HVAC. I hope that helps. I wish you the best as you consider your options.
Hi,
We are wanting to put an offer on a short sale that is in excellent condition. It’s only 11 years old and everything is great except that the garage door is broken and off the track. Looks like someone dented it with a car and when they tried to open it the door fell off the track. We would replace that after moving in (if our offer is accepted) but will this pass FHA inspection? I hate to wait months for bank approval only to have our FHA loan denied for this one thing. The seller won’t fix it because it’s a short sale and the bank will not fix it either since it’s an as-is sale. Wondering if we should even bother putting an offer on the house. Thanks
Hi Kristine. Thank you for reaching out. This is a good question. Here’s the gist. For an FHA loan, everything should work properly as it is supposed to work. If the garage does not open, it really needs to open properly. Otherwise it could be a safety issue anyway if it doesn’t work as it should. The appraiser should test the garage door opener and require repairs if the door is not able to open, but then again, there is always the chance the FHA appraiser will miss this detail. It shouldn’t happen, but it does sometimes for whatever reason. Also, there are sometimes ways to make repairs in situations like this, so maybe your agent has some ideas on how to get it done when the owner says no and the bank says no. I know I saw a recent short sale where the bank handled repairs and the owner did not do anything. You never know. One more thing. If the garage door opener is there, it should also work. However, if there is no garage door opener there when the appraiser comes for the inspection, there does not need to be one there. I just wanted to clarify though it has to be working if it is there. Please let me know if you have any further questions.
Hi Ryan,
We are currently purchasing a new home and during a walk thru we saw large cracks in the garage area which they tried to patch up. We had added an upgrade to epoxy the garage floor, but you can see large cracks throughout the garage floor. Also, in the patio area, there are cracks as well, but not as significant as the garage. My question is, the appraisal was done and I looked over the report and saw the pictures that was taken in the report, however there were no mention of the garage floor cracks or even a picture that shows the inspector went in the garage. We are worried that there is structural integrety in question for the house and the developer is giving us the run around about it. Therefore, we decided to cancel our purchase and we are asking for our deposit back, but now the developer is saying that we canceled therefore, we don’t get our deposit back. I’m just wondering is there anyway that we could question the appraisal that was done? It’s a brand new house, there shouldn’t be large cracks like that in the garage area, that’s why we were worried about the foundation of the house it’s built on and didn’t want to go thru with the purchase. Any suggestions would really be great.
Thank you,
Ana J.
Hi Ana. Thank you for sharing your situation. I have a few thoughts. Regarding a photo of the garage, the client may not require a photo of the garage, which could explain why one isn’t there. Many lender clients do require a photo of the water heater, so if the appraiser has a photo of the water heater, that may show the appraiser did access the garage (assuming the water heater is located in the garage). Regarding the cracks, it’s hard to say what the appraiser was thinking. It could have been something the appraiser didn’t notice, something the appraiser noticed but didn’t mention, something that wasn’t present during the appraisal inspection, or something that was noticed but not deemed to have an impact on value. I’m not sure if questioning the appraiser / appraisal would lead to you getting your deposit back in any way. I suppose you could ask the lender to ask the appraiser to address the cracks or ask why the cracks were not addressed. But even if the appraiser answers you, the cracks are still there, and you simply might not be comfortable with them no matter what. If you are concerned about structural integrity, maybe an engineer or different type of qualified professional needs to be involved? I would also ask the builder to explain why the cracks are there.
Hi Rryan,
Thank you for your comments. I will definitely ask the mortgage company who sent the appraiser that question, if he even went into the garage area and then we will go from there. Thank you again. Really appreciate your advice.
Ana
I just had an FHA appraisal done on my home and there were minor areas of the exterior of the home with chipped/peeling paint and they’re requiring it to be fixed. Will touch ups of these areas work (may be minor color differences) or will they require the whole exterior to be painted?
I just had an FHA appraisal completed and they said I need to repair minor chipped/peeling pain on the exterior of my house. Will touching up these areas be good enough or will the appraiser require the whole exterior to be painted?
I didn’t realize the previous comment posted. It gave me an error when I hit submit.
Hi Bill. Thanks so much for the comment. I apologize for a slight delay in response as I was out of town for a family funeral. This is a great question though. Only the areas with defective paint need to be cured. You do NOT need to re-paint the entire house. You only need to address the areas where there is defective paint. I hope that helps.
Hello Ryan,
My partner and I have rehabbed our first home and have agreed to provide buyers with an appliance package (stove, fridge, oven, dishwasher) prior to closing.
The buyers appraisal is next week. Will the pass if the appliance are not installed or will the pending agreement be acceptable?
I’ve heard some many different viewpoints, I’m dizzy! Fyi, we reside in Georgia.
Hi G.L. Thanks for reaching out. Great question. Eventually appliances will have to be installed (and verified as such by the appraiser). It’s okay if the appliances are not there during the initial inspection by the appraiser, but they will need to be there before escrow closes (for traditional financing – not a 203K or repair loan that allows for some work to be done after the close of escrow). If you don’t have them there yet, just let the appraiser know what will be there and what quality will be there so the appraiser can gauge quality and condition. For an FHA loan, the appraiser is going to have to observe appliances to make sure they work as well as observe and test systems. It’s best if the appraiser can do everything at one time during the inspection, but that doesn’t always happen. A lender can send an appraiser back out to verify all repairs have been made. Keep in mind this may cost time for the transaction as well as money to the buyer.
Hi! My fiance and I are looking at closing on a house however it is not completely finished. The floor is solid but there is not carpet it needs some trim and the counter is not completely finished. Also there are two sliding doors that are bolted shut because they need to be replaced. Another concern is that the seller is taking all appliances. I am sure they will be there for the inspection however they are leaving with the seller. We have an FHA loan but we are concerned that the appraisal will make us fix these things right away! Do you think these will be major concerns with an FHA loan?
Hi Courtney. Thank you for reaching out. Most of these are FHA issues that will require repair. The flooring is likely going to need to be added, though it’s less of a concern if it is a small area in my opinion. Sliding doors should definitely work and appliances will need to be there. Baseboards are minimal in my mind and shouldn’t require repair assuming there are no nails sticking out. I’m not sure what the counter is like, so it’s impossible to comment on that. Let me know if you have any questions.
Hi i am recently in contract in home and the basement is finished. There is a bathroom in there with no CO. The basement also has a kitchen and the stove was removed, it is electric and not gas. The appraiser went in the basement for less than 5 minutes and did not open any of the doors. Do you think he is going to flag any issues? I am planning on taking out the bathroom once we move in. The house has 6 and i do not need that many. Do you think any issues are going to be flagged?
Hi Tom. Thank you for reaching out. I really wish I could help, but there is no way for me to know what the appraiser is going to do. I know it can feel like a roller coaster of worry after an appraiser has inspected a property. I’ve been there before personally. In this case you’ll simply have to wait to see what the appraiser does. I hope everything turns out well for you.
Thanks Ryan, the appraisal has been sent to the bank and the property has been approved based on appraisal. The value came in higher than the purchase price. Can i assume that the basement is not an issue?
Hi Tom. Congratulations. I think you can assume the appraiser did not consider it an issue (unless the appraiser brought up something in the report somewhere). Maybe there is nothing adverse that stood out to the appraiser. Or maybe the appraiser ignored something that should have been called out. Keep in mind appraisers are not code enforcement officers or the building department. Whatever the case, it sounds like it’s smooth sailing for you in terms of the loan. Congrats.
I am purchasing a condo and the seller is refusing to allow the water to be turned on. I am using FHA for my financing, is there something else that can be done? Would FHA consider doing a pressure test instead?
Hi CS. I’m sorry to hear the seller won’t budge. I see that happen from time to time with bank-owned properties in particular. This is a non-negotiable item because the appraiser is supposed to test the water, hot water heater, toilets, showers, sinks, dishwasher, and garbage disposal. I may be missing something relating to water, but there are many things that need to be checked by having the water on. Unless the underwriter overrides this condition, an appraiser will hands-down not say the property meets FHA minimum guidelines until water and systems have been checked. I hope the seller will budge for your sake. Please keep me posted if you have any questions. Best wishes.
The saga continues. So the house has 6 bathrooms. However the appraiser missed one of bathrooms in the GLA and caught the one in the basement. so it matches tax records of 4 full 1 half. Now it has gone to the bank for underwriting approval. It has has two levels of appraisal review one is property approved and the next is loan approved. There have been no conditions written on the appraisal and there were none on the bank’s review. Last step is to get all documents for the final underwriter review at the bank which basically is the need of the Municipality Title. Now if that comes back clean with no issues, should there be any issues at the bank. I am being told no and my lawyer told me not to worry about it. I am wondering your thoughts. The basement’s bathroom never had a permit so should not come up on the muni title. what do you think?
also to note the property was approved by the bank in the initial appraisal review.
Hi Tom. I really cannot make a legal declaration of any sorts, but I do concur with your lawyer to not worry about something unless you have a reason to worry. So far it seems the process is moving forward, so I hope that continues for you. I have found in my area non-permitted items do not usually show up on Tax Records since the authorities don’t usually know about them. Though sometimes Assessors find out about extra square footage and such and will add non-permitted areas in the tax roll. The idea is if it’s there, they can tax you on it (whether it’s legal or not). Again though, I would say to not worry unless you have something to worry about. Or as the wise saying goes, “Do not worry about tomorrow, for tomorrow will worry about itself.” Remember too, one difference in the bathroom count is probably not going to sway value in a major way when you are talking about so many bathrooms. The difference between say 1 or 2 bathrooms can be a much bigger deal than the difference between 5 or 6 bathrooms 🙂
great thanks
Last comment i promise. So title came back clean. The Title showed single dwelling/with unfinished basement. Appraisal has basement 80% finished, can there be any flags set up by the underwriter reviewer or since no items with no CO’s or conditions, i should be good?
Hi Tom. You know, there is often a difference in what Tax Records (city records) say and what is there. Some areas in the country might be incredibly accurate, but others are not. Any appraiser or underwriter working the local market should be in tune with this reality, though when there are discrepancies we simply have to understand why. I cannot say there will be no issues for you, but I can say in some places it is very common to see differences between Tax Records and what is physically there. In case it matters: https://sacramentoappraisalblog.com/2014/04/29/10-reasons-why-public-records-and-the-appraisers-square-footage-can-differ/
I am having an appraisal done next week on a home that I am in the process of buying. I have been a tenant of the home for 7 years now and am buying from my landlord. The carpet is slightly stained in the high traffic areas. Will this hurt my appraisal?
Hi Jennifer. In terms of FHA standards, stains are okay – especially if they are only slight. But if the appraiser deems there to be some sort of a health issue because of the stains, then new floor covering would likely be required (or carpet cleaning). I have done this at times when a carpet is HEAVILY soiled from animals. Not only is the smell terrible, but it’s a very questionable safety issue if kids were crawling on the floor, etc… In terms of value, if you had brand new carpet, the home could be worth more. If the stains are small, I wouldn’t sweat it. The appraiser is not likely going to give incredibly strong weight to the carpet while ignoring the rest of the house.
Thanks! I can’t imagine that the appraiser is going to get down on the floor and sniff, but with that being said the house smells great. I couldn’t live in a bad smelling house. I wasn’t sure how it would affect the appraisal. I have steam cleaned the carpet. Just some things didn’t wash away. Thanks for the quick response. It’s much appreciated. Buying a home and having inspections done in a house I’ve been paying rent on for the last 7 years feels strange. Hoping for a good outcome as the landlord/owner probably won’t come down in price.
It’s normal for a home to have some deferred maintenance or signs of occupancy, and appraisers are used to dealing with all those little issues and imperfections in homes. This is probably nothing at all to be concerned about – especially since you just steam cleaned. Best wishes to you.
we are having inspection done on a 1900’s farm house….one of the existing rooms on the second floor had damage to the floor…the current owner removed damaged wood…put down plywood with screws…what kind of repair will they require(since it is original floor we cant get the same kind of wood)….will the let us just put carpet over it ….also the celing in this room is about 7 to 7 1/2 feet high is this acceptable…thankyou
Hi Becky. Thank you for reaching out. It’s hard to visualize what the issue is. I’d welcome you to email me a photo if you wish. Plywood is not really considered permanent flooring though, so I’m inclined to think it should be repaired. However, it really depends on the situation. I’d like to see a picture if that’s okay. The ceiling height of 7-7.5′ is fine. Minimum ceiling height is really 7 ft (or 6’8″ under beams).
We are in contract of our home, the house inspection is tomorrow and its a FHA loan. Our concern is we have a big tree in the back of the garage, that is not attached to the house. The roots have cracked and buckled the cement floor in the garage. Will this cause a problem with the loan, under the trip hazard, considering its in a garage, and its not attached to the house?
Hi Connie. Thanks for stopping by. I appreciate it. Two things:
1) I would be more concerned about structural integrity rather than a trip hazard. Of course cracks are a subjective thing to interpret since they come in all shapes and sizes (and happen for so many reasons), so it’s hard to give you a verdict either way as to whether this will be an issue in your case. The appraiser is going to need to look at what’s there and then make a judgement call. If it looks like there is a deeper issue, the appraiser would be best to call for a qualified professional to investigate further to make sure there are no problems. I wrote a bit more on cracks here in case it’s useful: https://sacramentoappraisalblog.com/2016/02/22/how-do-appraisers-deal-with-cracks/
2) Everything within the parcel lines needs to meet FHA minimum standards, so it does not matter if it is not attached to the house.
I hope that helps. Best wishes.
We are under contract for a house we are selling. We have a detached garage that the floor is craceked and buckling form a tree in back. Will this pass or is there something we should do prior to the inspections, can we fill in the cracks and it pass?
The remedy depends on what the appraiser says. I would recommend waiting to see what happens. If the issue is a trip hazard, then maybe filling in the cracks will help. If the appraiser questions structural integrity, maybe a qualified professional inspecting and saying everything is okay is the remedy.
We applied for an FHA loan. The appraiser is horrible, to say the least. He took a week to get his appraisal in, which delayed our loan. Than underwriting wanted to know if anything needed to be done to the deck. Well, he said “rough spots need to be sanded and stained”. It is so incredibly vague and seems to have nothing to do with the structural integrity. My bf, who I am buying the home with, is an engineer and he checked out the deck himself.
Is there any federal/fha guidelines on which he can base his response on?
We plan to sand and restain the deck in a few months, but with the huge FHA closing costs it is a stretch for us to pay for these , seemingly rediculous, repairs.
Hi K. Thank you for reaching out. I’m sorry to hear about your situation. You know, it’s difficult to speak too much into the issue of the deck since I have not seen it personally. However, I will say if there is defective paint or bare wood on the deck, I can see an appraiser calling for removal of any defective paint and then an FHA-approved sealant or paint to cover the deck. This would be legitimate for the appraiser to call out. Off the top of my head I do not know the section where the most recent manual addresses bare wood and paint, though here is a link in PDF format in case you are interested in tracking down any documentation. http://portal.hud.gov/hudportal/documents/huddoc?id=40001HSGH.pdf
Keep in mind FHA repairs are not just about structural integrity, so this may be right for the appraiser to call out. Of course it sounds like communication wasn’t clear though unfortunately, and that’s a bummer.
Realistically if there are just a few spots to sand and stain, that can be far better so you can do a quick repair job now and then really sand and re-stain down the road (if that would work based on what the appraiser is really asking for). The loan officer should be able to reach out to the appraisal department so the appraiser can be asked to clarify. If that has not happened already, it’s a wonder why. Often appraisers will include photos in the report of the repair that is needed. Hopefully there is something there. If not though, then clarification is what will need to happen.
Regarding turn-time, I wonder how much time the appraiser was given. For some context, sometimes lenders and loan officers blame the appraiser for delaying the loan when in fact the lender dropped the ball. Actually, I’m being nice. This happens quite a bit. 🙂 Please note I’m not excusing the appraiser if the appraiser was late, but sometimes lenders cannot perform or maybe they even ordered the appraisal too late. Or maybe the appraiser turned in the report but then it got held up in underwriter. Or maybe the appraiser was a day or two late, but then the appraisal management company held the report for days. Or maybe the lender is knowingly asking appraisers for a 5-day turn-time when they know appraisers are incredibly backed-up. There are many factors here. Again, I’m not excusing the appraiser, but objectively speaking in my experience the appraiser sometimes gets the blame when there are other issues at hand.
Keep me posted if you have any questions. Best wishes. I really hope things work out well for you.
Hi, I put an offer in on a home in chula vista, ca. The inspection found cracks inside and outside of the rampart general chimney. I learned a lot about the rampart general over the past couple weeks. Cracks appear to be non repairable. Appears these chimneys were installed in 60s and 70s primarily in california. Any idea if cracked rampart general chimneys which do pose a safety risk are considered something the fha and an fha appraiser is concerned with?
Hi John. Thanks for reaching out. You know, I would be curious first of all if these types of chimneys are common in your market and whether the information has permeated the marketplace too. On a practical note, would appraisers or even buyers and agents know how to tell the difference between this chimney and another? Maybe, maybe not. One of the big factors here is that appraisers are not chimney experts by any stretch. However, if the appraiser comes into contact with information that could be a health and safety issue from another reliable professional, then it could very well be an issue. I suppose part of it comes down to what “safety risk” really means. After all, there is a difference between imminent danger and something that is not curable but really just not ideal. It’s sort of like a home inspection report that makes it sound like a house is falling apart. Some issues clearly need to be fixed because they pose a risk, but others are simply items that are not ideal but really don’t pose an issue. Personally if I came across a situation where I was told the chimney was unsafe, I would require a qualified professional to do whatever needs to be done to make the chimney safe. I am not a chimney guy as an appraiser, but I would expect the chimney to be safe.
Hi we are currently under contract with a home that was built in 1908. The home has been completely updated ac.roof.wiring….it has unlevel floors though. I’m am scared it May not go fha.
Hi Mary. Thanks for checking out. Two things:
1) It is completely normal to be scared. Escrows are like a roller coaster of emotion. I know this for myself too. They are nerve-wracking. Just hold on tight and try to enjoy the ride.
2) Old homes are okay. Just because it is old doesn’t mean it will struggle with FHA. In fact, some older homes are built incredibly well. For what it’s worth at times I see some newer homes that struggle to go FHA because of the condition. It is to your benefit that the home has been completely upgraded. You may not be in my market, but this past quarter 24% of all homes were FHA purchases, which includes older and newer homes. For fun I just checked and see there were three homes built prior to 1910 that went FHA this year so far in Sacramento County. Keep in mind there really are few homes built prior to 1910 in my market.
Anyway, best wishes. I hope everything goes surprisingly smoothly for you.
If an older home has a furnace in the basement, but no egress windows in the downstairs bedrooms, is this a flag for an FHA appraisal? Also, this is an older home with wiring that is not updated completely to breaker boxes, will this be an issue as well? Thanks!
Hi Trav. I would recommend checking with your local code to be sure what the specifications are for basement windows (or an egress). In a typical above grade bedroom there needs to be at least one window of adequate size or a door to the exterior, though in this case we might be looking at a basement, so the rules may not be the same. I realize there may be some added rooms in the basement, but that doesn’t mean it’s no longer a basement. Anyway, technically a window is not needed in a bedroom upstairs, though clearly an egress would be needed. If not a window, a door would suffice. Regarding the basement though I would defer to your local code on this matter. If the bedrooms downstairs really are considered bedrooms despite being in the basement, they would need a secondary egress as far as I’m concerned. I would take old wiring on a case-by-case basis. I suppose it depends what is there and whether it is deemed a safety issue. If I thought there might be an issue I might recommend my client to maybe hire a qualified professional (electrician maybe) to verify things are okay.
Is OSB acceptable as an exterior finish for an FHA loan?
Hi Brad. I guess it depends on what we are talking about. I know Home Depot has some OSB siding that looks legitimate, though if it is an OSB we might see on a subfloor, I have to think that’s not up to par. I don’t think FHA has a specific list of allowable sidings, though the siding obviously has to have economic longevity (which speaks to needing enough quality to be sustainable). Of course the siding has to be suitable to curb moisture from the exterior too.
We are selling our home and the buyer ia getting an FHA loan. We live in town and have a shed in the back yard. The electrical service goes over the top of the shed, to a pole in our neighbors backyard. We have been told that FHA loans don’t care that it’s a detached shed, and that it won’t pass the inspection. Is this true?
Hi Kasie. Thanks for reaching out. Everything in the parcel lines should meet FHA minimum standards. If there is something unsafe about the electrical, it’s likely going to be an issue (if the appraiser or someone else notices and/or discloses the issue). I don’t really know what it means to have electrical go over the top of the shed, so it’s hard to speak to that exactly. If it’s a major code violation or unsafe, there is a good chance it’s going to need to be cured.
What happens if an appraiser doesn’t mention things in his report that should have been mentioned? Like no life span in the roof, electrical wires not being piped in the attic(just sitting on top of insulation, leaking sinks, electrical outlets with exposed wires… Since I’m from a small town all involved when selling a home know each other. I feel like my house was made to pass even thou it didn’t meet FHA standards. Please help Thank you
Hi Bren. Appraisers aren’t roofers. If the roof does look like it does not have two years of life left, an appraiser should mention that and ask for a roofer or qualified professional to inspect it. I can imagine an appraiser not seeing wiring in the attic since a full attic inspection is not required. If the appraiser finds out there are issues though, they should be mentioned and called for repairs. If there are leaking sinks and exposed wires though, those things should likely be called out. If this is your house, you can always make the repairs yourself. If you are buying the house, you can always ask the lender to reach out to the appraiser and ask how these items impact the appraisal or the appraised value. If these are legitimate issues, then the appraiser ought to call them out for repair or further investigation. If you are buying the house, it’s frankly not fair to buy a house with a shoddy roof or with electrical safety issues.
My daughter just closed on a house last week that passed an FHA inspection. It was a HUD owned home. The owner passed away. Now we are finding that there are many electrical issues that were never noted in the inspection. The incoming service is 60 amp and the panel is 100 amp. There are exposed wires in the basement. The basement light fixtures are not installed in electrical boxes. The porcelain light fixture above the second floor entry is nailed to the wall and the wiring is exposed. There are outlets in the basement that are powered by extension cords that are plugged into other outlets. There are no GFCI outlets installed in the kitchen and the outlets are near the sink. Is there any recourse of action?
Hi Phil. I’m sorry to hear about this. What a frustrating situation. It’s always tricky with things like this because there are certain things an appraiser will notice and/or call out in light of training and being aware of FHA standards, but there are some things that will be caught more by home inspectors because that’s more in line with stuff they are looking for. Did you have a home inspection? If so, it would be really surprising to not see these items called out. Keep in mind unfortunately appraisers do not often get copies of home inspection reports either, so the appraiser here may not have had the advantage of seeing that information.
In terms of liability, I don’t really know who would be liable if anyone. To me it sounds like some of this stuff is maybe outside the scope of what an appraiser would notice – especially if boxes and wires are buried deep in the basement. Though it also seems like an appraiser would have caught some of it too maybe. I might recommend talking with your loan officer about the issue to see if there are any solutions. This could be a case where another party should have caught this, though there is also buyer responsibility too somewhere in here. I’m really not a liability specialist by any stretch though, so take my words with a grain of salt. You might also consider reaching out to FHA at 800-CALL-FHA to see if they have any insight or ideas for you.
I wish you the best. I’m sorry to hear about this.
Thanks for your quick response. She didn’t have a home inspection. She thought the FHA inspection would cover the major items. The bank that was involved didn’t want to do any repairs to the property, so she is probably stuck, but I will have her point it out to her loan officer and realtor. Luckily it is a small home and most of the wiring is accessible in the basement and I have electrician friends who can help me do the work.
You are welcome Phil. Yeah, she probably just has to bite the bullet and do these repairs. One of the real challenges about HUD bank-owned homes is that the bank just doesn’t tend to do anything. I find it incredibly ironic because HUD exists to promote home ownership. You’d think they would bend a little more to work with first-time buyers in these situations, but they really don’t unfortunately. It also seems to go against the grain of their mission, but that’s just my take. Anyway, I’m grateful to hear you have connections and that the house is smaller. Hopefully these repairs can be made with ease. Best wishes.
Hi. My wife and I are doing a FHA Refi and was asked to fix some chipping/pealing paint on only one side of the house. We have painted the whole house now, but was unable to remove “ALL” of the chipping/pealing paint. The house looks much better now, but the side with the chipping/pealing paint 90% and the new paint on the house looks 100%. How picky are appraiser when it come to exterior paint on a house. “No lead paint”
Hi Patrick. Thanks so much for reaching out. It’s not that appraisers are picky, but that FHA standards are picky. Defective paint is a big deal to FHA/HUD, so if the appraiser still observes chipping paint after coming back out, it’s most likely you’ll have to repair the issue. The appraiser really shouldn’t turn a blind eye to something like this. Hopefully there are no paint chips on the ground either. The appraiser will be looking for that too (because of FHA/HUD standards). Let me know if you have any further questions.
Hi Ryan: I’m pursuing an FHA loan and have already agreed with the seller on an amount and started the contract. I will be having the inspection this week. The master bed room and one other small room has bare concrete flooring. My wife and I wanted to keep it concrete and go ahead with the purchase price we agreed on. Would this pass inspection.
Hi Jay. Thanks for reaching out. I talked with someone at HUD on the phone earlier this year and asked them this very question. The person on the phone said there needs to be floor covering. However, some appraisers may not call this out for repair because it’s not a health and safety issue, and it’s hardly a marketability issue either. Some homes have a glaze over the concrete too, so a rule like this seems a bit archaic in my mind since concrete might actually be the desired look in some cases (feels more modern maybe). Whatever the case, as far as I’ve been told and understand, technically FHA states there should be floor covering. However, it may or may not be called out by the appraiser.
I’m confused by all the conflicting websites and their myriad advice, so please forgive me if I ask a question with an obvious answer.
My fiance and I are looking to purchase our first home (for either of us) and want to use an FHA guaranteed loan. The house was built in 1906, so the likelihood that major mechanical systems need to be completely replaced is pretty high. We are honestly anticipating a full overhaul of the electrical, plumbing, HVAC, and the roof at a minimum just to make the house liveable. This is also my source of confusion (not to mention my frustration!). If all these issues are required to be in working order to secure the FHA loan in the first place, how do potential homeowners ever buy the house? If we had 100K set aside we wouldn’t be using a loan to buy the house, we’d simply pay cash for the purchase and repairs.
Are banks in the habit of repairing REO properties to this extent simply to get it off their books? Or is there some other type of loan we need to look into? Homebuying really shouldn’t take a degree in rocket science to figure out. 🙁 Any insight you can provide would be greatly appreciated!
I should clarify that all of the mechanical systems are there and are in somewhat decent working order, but they’ll definitely need to be replaced sooner rather than later to bring the house up to modern living standards.
Hi Jessica. Thanks for reaching out. It sounds like you’re in the midst of the frustration of the homebuying process. I get that. Here’s the thing. There are certain standards for any type of loan. We as buyers don’t often like that, but the lender wants to be sure the property is in okay shape and is worth making a loan on. If the lender had to take back the property through foreclosure, could the lender still sell it in its condition? If not, and the property is less marketable, it’s more of a risk for the lender to make the loan. This is why standards exist.
I mention this only to say some properties simply won’t be able to be financed with traditional financing because there are too many repairs needed. At the same time let’s realize there are many properties that will work for traditional and FHA financing. However, let’s keep in mind a heavy fixer might be best suited for a repair loan such as an FHA 203K loan or Fannie Mae’s Homestyle loan. These types of loans can handle a fixer property by essentially padding in the purchase price sorely needed repairs. Thus the homebuyer can effectively purchase a home that does end up meeting minimum standards (after repairs are done) even though the current condition would no way qualify for financing. This is a safeguard for the lender and it’s also a safeguard for the buyer who might not have $100,000 in cash set aside.
Banks vary in what they do to properties. In 2007 they were doing literally nothing and just dumping properties on the market. Right now in my area at least they tend to paint, add carpet, do basic cosmetic repairs, etc… I find in many cases banks get their properties FHA-ready, though not all banks do that. When a property is a heavy fixer though it’s more common for a bank to put it on the market and end up selling it to the most likely candidate – an investor paying cash. There is no one standard though with what banks do, but I will say banks are doing a much better job making some repairs in advance than they used to do ten years ago.
Any thoughts?
Hello Ryan,
I recently had a foundation repair guy come out to check my foundation and he was very surprised that my house was a FHA house. He said that the foundation should have never passed the FHA inspection. My house is almost 100 years old and there are support beams that aren’t supporting anything and the seller made an additional crawl space that ended up creating a weak spot in my foundation. My Question to you is with these problems should this house have ever passed the inspection and been sold in that condition?
Hi Sarah. Thanks for reaching out. Hmm, I’m so sorry to hear about your situation. I think the foundation guy is maybe correct if the foundation is weak or there is a safety / marketability issue. Though the reality here is the FHA appraiser only does a “head and shoulders” observation of the crawl space. This means the appraiser basically sticks his/her head in the crawl space only. Thus it’s not an exhaustive inspection that might be able to identify this type of thing. Moreover, an appraiser is not a foundation specialist anyway, so a trained eye for this sort of thing would be far more relevant than an appraiser’s eye. If the appraiser knew about an issue or potential issue then it would likely be prudent to call for either further inspection by a qualified professional or ask for any blatant issues to be cured. Though if this was deeper in the crawl space and well beyond sight from a limited observation (or beyond the scope of what an appraiser might realistically be able to see without being a trained foundation expert), there really isn’t any way an appraiser would know. In short, it’s impossible to know all the issues a house might have without inspections from many different sources. This is one reason why it’s important to have a home inspector go through the property because he/she will be doing a full crawl of the underneath to hopefully catch some of these things.
Any thoughts?
Hi, Ryan.
I’m selling my over 100 year old home in a rural village that we have rented out for 10 years. The buyers are getting a USDA mortgage, and I understand the appraisal is similar to an FHA appraisal.
My question is regarding some peeling dry lock paint on the unfinished basement walls and a few small places on the outside foundation. Does that need to be painted.
Also, is it an issue that some of the basement foundation, made of stone and cement (due to the age of the home) is unpainted? The home was appraised for a USDA loan last year (buyers financing was not approved)and it went through with no issues.
Thanks for your suggestions!
Thanks so much for the message. So Drylok paint is for masonry, right? I don’t think I’ve encountered this issue before, though when thinking of this through the lens of FHA standards, I have some thoughts. First, defective paint is typically something appraisers look for on the outside, though HUD standards apply on the inside too. In truth I don’t know enough about this type of paint to know the ingredients (if there is led in there for instance or other potential hazards). My sense is it is a bit different when considering wood vs masonry though because wood can deteriorate if it is not sealed (as opposed to masonry). I say this because economic longevity is not an issue here with whether the masonry is painted or not. Thus while we might have an issue with “bare wood”, we don’t have that same issue with masonry. Yet I think I would have some concern about chipping paint just in case there was an issue with safety for some reason. I might recommend painting it just to be safe. Or don’t do anything, but be ready to paint in case the appraiser calls it out.
In my mind it is not an issue about stone and cement. I think that’s what we would expect and see in many homes in your market.
I bought home and was inspected for the Va requirements ,And the garage door was said to be just hanging up and was not a problem ,When I had it checked it turns out it was bent on the bottom and needs replacing at some point ,Another problem is the cement all over the house looks like termites eating it away even in the garage.The walls in the garagou can see where something is eating it ,Now is the inspector job to see those things ? The roof has no gutters which is discoloring with lines. Was not informed there were no gutters.The rugs in the house have some type of bugs ,The house was on the market 99 days but this looks like its been that way maybe years,Nothing was said about the carpets that they had some infestation.The realtor said house was fine as he looked at it with the inspector.I was not present and Realtor said I did not have to be there ,Just wondering if I have any rights now that I live in the house and finding all these things wrong ,Had to pay 5 grand for an air conditioner they said was fine ,it was not .They said they could not turn it on if it was under 65 degrees but he could of came back and checked it beings the weather warmed up that week .not to mention the air conditioner is out dated which means it would not be up to standards.Should I tell the Veterans ,or just do nothing ?
Hi Joan. Thanks for reaching out. I’m sorry to hear about your situation. This almost sounds like a legal question, so I want to be careful about how I answer since I am definitely not a lawyer or someone who knows exactly who is liable in this situation (if anyone).
For context on the appraisal side of things, the appraiser may not catch any bugs in the house unless he/she happens to see something that looks like a problem. This makes sense since an appraiser is not a pest inspector. Keep in mind the appraisal report has a place where gutters can be listed or not depending on whether they are there. It would be interesting to see if the appraiser mentioned them or not. As far as the AC, I can understand the appraiser not being able to test it if it’s too cold, but in a situation like this it sure is unfortunate if the sale went through without the unit working. I am not sure what the procedure is on part of the VA when it is too cold like this, but it sounds like the appraiser at least informed everyone about the difficulty testing. I just wish for your sake the weather wasn’t an issue.
I would think VA would require Section 1 clearance, and thus someone besides the appraiser might have looked at the property a little closer. Was there a pest inspector involved in this transaction? Or a termite company maybe? If you have active infestation right now, I would definitely wonder why they didn’t catch that, and I would be livid.
If I were you I would maybe call your loan officer and/or the VA to talk about this situation. If the house was inspected by a pest company, for instance, why did they not catch the wood damage? Your loan officer might be able to bring you up to speed with who did and did not inspect the property. I think calling the VA is fine too to see if there is a remedy or assistance in this situation somehow. Keep in mind though there could be damage from the past, and that doesn’t necessarily mean there is active infestation at the moment.
I have to be honest too, you bought a house without seeing it. Some of this might have been able to be avoided if you had seen it. Granted, there are many reasons why people buy without seeing a house. This is especially true in the case of veterans who could be stationed or deployed elsewhere. I completely understand that, but it just goes to show it’s a hard thing to really get to know a house when not seeing it in person. Whatever the case, I’m hopeful of the future that there won’t be many more issues.
If there is anything I can do for you, please don’t hesitate to reach out.
I too bought a house with FHA loan & have very serious problems. It has been 9 yrs I have dealt with moisture so bad in basement my house house smells like mildew. The first few yrs weren’t too bad but is is horrible since weather is changing so much, all it does is rain. We also have terrible problems with drainage & septic system. Unfortunately my husband doesn’t show any interest in figuring out the cause of any problems & I have low income so can’t afford to pay contractors to diagnose. I did finally get someone to dig up my yard only to find there is no French drain or drain system period to wick moisture away from my underground basement. I also discovered the septic is not even close to legal. It’s been so long since we bought it that I prob can’t do anything about it & I can’t get a loan big enough to fix it on my income. Any suggestions??
Hi Mary. Thanks for reaching out. I’m sorry to hear about your situation. It’s hard to say what the problem is coming from and where to place blame. Hopefully you had a home inspection during the buying process too to help inform you about issues. It really has been a long while, and some of this might come down to stuff you need to do to help maintain a house because over time a house gets older and things needed to be repaired, replaced, etc…. It’s really too bad a french drain was not there, though if an appraiser did not observe any damage from water at the time, it’s hard to blame an appraiser. I suppose an appraiser could have noted whether there was a drain or not, though if you have metal gutters along the house, then the appraiser might have been safe to assume those gutters would do an adequate job. Whatever the case, it sounds like installing a french drain might be helpful for you to keep water away from your house. I hope you can find a way to do this. Septic systems can be costly unfortunately and they do fail after a time. In case you didn’t know there are FHA repair loans (FHA 203K loan) you might consider looking into. These types of loans can help owners pad needed repairs into the loan itself. There may be some other loan programs out there to help too, so it may be helpful to talk with a few Realtors and loan officers about what they know. These are big issues though, so if you cannot solve them, then at some point you may have to choose to sell. The issues certainly aren’t going to go away, so I hope you find a remedy soon. I wish I had a magic wand to help you out here. 🙂
It was inspected but not really inspected. The guy didn’t really check anything. I was there when he did it. He flushed toilet & turned water faucet on. That’s it. If he had checked the septic system he would have noted that what u flush runs straight out a pipe onto someone elses property. Me not knowing anything about that stuff didn’t know until justthis winter that the septic tank wasn’t even hooked up it was bypassed. I’m basically a single mom barely feeding my kids & keeping utilities on. There is no wiggle room for repairs. My neighbor bought pipe & hooked up tank for me but that’s as far as I got. No room for leach field unless entire system is redone.
Appraisers don’t actually check the septic system. The appraiser should have noted the septic was there, and if the appraiser knew of any issues then he should have said something. It sounds like the appraiser didn’t know of anything or suspect issues. This is an unfortunate situation. It does sound like it has digressed through the years too. I hope you can find a solution. I know how strong you have to be to keep things moving by yourself. Be brave and keep going Mary.
Hi Ryan,
We currently live in a house built in 1953. It’s in Southern California. Our two bedrooms have windows that are non egress since they are too high off the floor. My question is are we grandfathered in when we go to sell our house? Or will we be required to repair these windows in order to sell? These windows have not been altered in anyway. I guess my main concern is if I sell to someone who is going FHA will I be required to make these repairs. Thanks
Hi Brandon. I imagine you will be okay. I tend to look at this as a situation where the old code would be grandfathered in unless there is a blatant safety issue. There are older homes where windows were simply built higher. I find this to be particular true with mid-century modern homes where the windows are literally at the top of the ceiling. It would be silly to think these homes could not go FHA unless there was a huge safety defect in construction.
Thanks Ryan. I was just under the assumption that all bedroom windows had to be at least 44 inches off the floor for an escape during an emergency. Our windows are around
52 inches. I agree, I can’t see FHA not accepting a house with these windows especially since they’re grandfathered in. Thanks again.
Hello I am currently trying to buy a 1910 small farm house. The appraiser said he was not sure if it would be approved because the house has no crawl space and the foundation is a concrete slab. House was completely renovated.. I’m scared because I love this house. Do you have any in-site would so appreciate it.
Hi Cindy. Thanks for reaching out. Let’s be real. Escrows are scary these days. I don’t say that to pump fear, but only to say you’re going through something normal. Even when I bought a different house a few years ago I got to know firsthand again how stressful it can be. Anyway, you’ll make it. 🙂 To answer your question, a house does not need a crawl space to go FHA. FHA does not require a crawl space. A slab foundation is completely fine. If there is a crawl space, then it would be prudent of course to have access so the appraiser can do a “head and shoulders” observation of the space (basically poke the head in there and look around). But if there is no crawl space, this is obviously not something that can be enforced.
Thank you so much for getting back to me. I have not heard anything yet so I just kee0 saying no news is good news. Have a wonderful day.
Hi Ryan,
I purchased my first home 3 months ago under FHA. Shortly after moving in I’ve discovered many issues mounting near 60k in repairs. I’ve been busy trying to open as many avenues as I can toward finding the responsible parties. I also have an attorney and a structural engineer. I checked in with FHA, since there are many issues with this house outside of the acceptable list you provide here. ie I have large dining room windows that are painted shut. My roof is unsafe and at risk for collapse, so I don’t have the 2 year life span required. I have a 3 season porch with flaking, peeling paint, etc.
In response to my questions via telephone call — she politely informed me FHA is not responsible for any of the damages and my only recourse is to complete a form she sent me in an email. The purpose of the form, she stated, is so they can make the appraiser aware that there were problems. I see that as a slap on the wrist for her.
I understand FHA will not accept any responsibility. l’d like to put it out there to anyone who might be looking at an FHA appraisal as an extra layer of protection in the buying process — it certainly was not in my case.
I’m at a point where if I continue getting the work estimates needed, just another 10k in damages will take me to the point that I risk the village putting a condemnation notice on the door. It’s actual value is about exactly half than what the FHA appraiser estimated it to be. And here I sit with the funds I planned to use for minor upgrades being put into attorney and structural engineer fees. Replacement of the 3 non working appliances. And now with snow on the way soon, being told if the roof repair isn’t done I’ll need to vacate as it won’t be safe with the extra weight.
Yet FHA’s goal is to ensure people are safe? I fail to see any positive benefits to the FHA loan program.
Hi Sharon. I’m so sorry to hear about your situation. I can’t imagine how stressful this has been for you.
I’m not trying to defend the appraiser regarding the roof, but did it look bad from the ground? If so, the appraiser ought to have called it out and required a 2-year roof cert. But if there were no signs of wear and tear or failing from the inside (spots on ceiling and such), it’s hard to pin this on the appraiser. Other stuff such as appliances not working or paint flaking should clearly have been pointed out.
I’m so sorry to hear this.
Hello,
My husband and I are looking at a house and the only thing that we can see that might not pass an appraisal is the fact that the house has the carpet ripped out of the bedrooms, so the sub-floor is showing. The sub-floor is sealed and is not causing any health or safety issues and we are willing to pay to put carpet in. would this be an issue?
Hi Brittany. Sorry for the delay in response. I’ve been away from my desk. This is likely going to be called out because it can be perceived as a marketability issue. In all my conversations with FHA on the phone they’ve been pretty clear that missing flooring is an issue they’d like appraisers to call out. I don’t personally always agree with this, but I don’t make the rules.
Hello,
My fiancé and I just recently had our FHA loan sent to underwriting where we now await FHA appraisal and inspection. We just had a home inspection done separately from FHA. One thing of note was that the deck off the back of the home is resting on concrete blocks they don’t appear to be 4’ deep but rather sitting on the ground. The home is a manufactured home and attached to a permanent foundation with a 3’ crawl space. Previous home owners purchased the home in 2012, how was built in 1996 and classified as real property. According to property tax info the deck was added in 2001 and appears to be permitted as nothing was disclosed otherwise in our purchase contract. We are concerned if this deck would cause our fha appraisal inspection to fail. The rest of the home is completely updated and foundation is fully structurally sound. Any advice on FHA inspections regarding decks and what exactly would be flagged as not up to par? Thanks so much for your feedback,!
Hi B. thanks for reaching out. First off, the appraiser very likely won’t see the home inspection report. It’s pretty rare for that to happen. Thus that doesn’t happen and if this issue is not disclosed in the contract, the appraiser may not even know about it. It’s hard to say if an appraiser would call this out though. It’s not easy to issue an opinion without seeing it. I think it would take a knowledge of local code and really looking carefully. Keep in mind appraisers do a head and shoulders inspection of the crawl space only. Thus they poke their head into the crawl space instead of crawl throughout the entire area. This means an issue like this may not be readily seen unless it was visible when looking at the deck from the exterior of the house. In short, if it looks shoddy or unsafe from the exterior, the appraiser may dig further or call for repairs. If it looks okay, the appraiser may not know about any issues. I just hope ultimately whatever happens, that this is a safe situation for you. Please keep me posted with what happens.
Hello. Currently approved for an FHA loan as a first time home buyer. The integral garage doesn’t have the fire drywall on the ceiling. Seller is allowing us to make minor repairs already documented from the time of listing the house. Am I able to board up the garage to get it to pass and fix properly upon moving in, assuming all else goes well?
Thank you
Hi Ashley. The appraiser is going to have to access the garage. I would be really surprised if an appraiser was okay with not seeing the inside of a garage – especially since it is attached to the house.
Hi ryan. I have 6 offers that are FHA loans. I’m concerned in accepting any bc I hear ther appraisers and inspectors are alot tougher.
#1) I have a lattice patio that I had painted a few years back and there’s peeling paint. Would that be an issue ?
#2 ) I have some cracking on my cement patio and walkway (minor) ?
#3) on same walkway there is a slight raise (1/2in) in one area . Trip hazard?
#4) I have a tree whos roots are coming above ground in front yard? Not impeding sidewalk or driveway?
#5) I had a field mice problem x2 over past 5yrs from so much construction around me. The problem is long resolved. All holes filled in. BUT ive never been in the sm attic area to se if there are any droppings there . If there are, then should I worry?
I love how well you’ve explained to others here and need to make a decision VERY SOON. can you help me?
Thanks for reaching out. Here’s your questions and my responses:
#1) I have a lattice patio that I had painted a few years back and there’s peeling paint. Would that be an issue ?
Defective paint is typically an issue. For homes built before 1978 the issue is lead-base paint. For homes after 1978 the issue is marketability and/or longevity. An appraiser is likely to call this out, but that doesn’t always happen.
#2 ) I have some cracking on my cement patio and walkway (minor) ?
Cracks happen. I wouldn’t be concerned unless this is really a safety issue or the result of what could be a structural problem.
#3) on same walkway there is a slight raise (1/2in) in one area . Trip hazard?
This doesn’t sound like a big deal. A 1/2 inch isn’t much in my opinion and I wouldn’t be likely to call this out. Take what I say with a grain of salt since I haven’t seen it, but I wouldn’t generally be concerned about such a small raised area.
#4) I have a tree whos roots are coming above ground in front yard? Not impeding sidewalk or driveway?
I wouldn’t be concerned about this at all unless for some reason this is a safety issue.
#5) I had a field mice problem x2 over past 5yrs from so much construction around me. The problem is long resolved. All holes filled in. BUT ive never been in the sm attic area to se if there are any droppings there . If there are, then should I worry?
If the issue is resolved, it’s probably not something to worry about. If the appraiser pokes his / her head up in attic and sees drops, then further inspection may be required. If the appraiser does not see anything, this is not something to worry about. Keep in mind an appraiser only pokes a head up there and does not crawl around the attic.
Hi,
I bought a home 4 years ago with an FHA loan. i recently noticed water in the crawl space so my husband and i called a company to come out and encapsulate it. while the workers were working they took photos of the crawl space… many support beams are on the ground and the floors inside are warped and the house is starting to settle, there is a lot of debris and the kitchen sink pipe has a huge whole in, meaning the dish water is going straight to the ground. they didn’t even have enough room to crawl in the back. Is there anything i can do? I feel I’ve been tricked. The house was flipped and “renovated.” When we took our dishwasher out there were giant holes in the floor looking right into the crawl space. I thought FHA loans were more strict with requirements? I even had my own inspector come out and he told me that the crawl space looked normal for a house this old (1957). we also pulled the rug up in the bedroom and there are holes in the floor seeing right into the crawl space, now we know why we have had rodent issues… shouldn’t the appraiser have noticed this or the seller/ selling agent? what happens to the report that my inspector made? not to mention the ground does not perk, every time it rains my yard floods!!
Hi Jamie. I’m so sorry to hear about your issues. That’s really hard. It’s not easy for me to speak into this since I don’t know the full details and I haven’t seen your home. But you had a home inspection and the inspector didn’t notice anything in the crawl space? How could that be when the inspector presumably crawled through the space? Keep in mind the appraiser only has to do a head and shoulders observation of the crawl space, so unless there was something blatantly obvious right there, it’s possible the appraiser missed any issues deeper into the crawl space while fully conforming to FHA loan expectations. The appraiser would not know about holes under the dishwasher too.
Your question is really legal in nature about who is responsible. As an appraiser I’m not really qualified to answer that. I’m just sorry to hear you’re having so many issues.
Thank you for the quick response. Does the appraiser see the inspectors report?
Very rarely will an appraiser have access to a home inspection, pest inspection, or other types of reports. It happens only occasionally. I would say the vast bulk of the time these types of reports are not provided to the appraiser. If the appraiser called for clearance of Section 1 though, then maybe a report was shown for pest.
Hi, Ryan. Great list. Perhaps you would consider expanding your list to include adequate egress due to security bars on bedroom windows requiring quick release latches or the dreaded double-action lock on security doors (needing a key to exit).
Thanks Tiffany. That could be interesting. I suspect code might not be the same for bars across all portions of the country, so I’m hesitant to add this. Yikes on needing a key to exit though. That is such a blatant safety issue.
Hi there,
Buying a home with a back deck that has old chipping paint. Would the house pass inspection if we stripped the old paint, sanded the deck, and stained it as opposed to re-painting it?
Thanks
Hi Rebecca. Staining a deck is incredibly normative and I don’t see how it could not pass. If any colleagues think differently, please chime in, but otherwise I think you’re going to be okay. Pro tip: Make sure there are no paint chips on the soil. FHA is strict about that. Good luck to you.
Hi, I just out a offer in on a home. I love the home however there are several issues with the home. All of the issues are cosmetic issues. There are several holes in the wall of the house. The electricity and water is not on because no one is living there. The holes in the wall will be easy to fix and the seller is willing to fix. Also, the stove is missing the front part. However, I would like to buy new appliances before I move into the home. Will this be a huge issue?
Hi Justise. Thanks for reaching out. It’s so hard for me to speak with certainty without seeing your situation in person. I wouldn’t be concerned about minor holes in the walls. I don’t really know what “missing the front part” means. The appraiser is valuing the property as of the date the inspection takes place, so if appliances are purchased in the future that doesn’t have any bearing on the value when the appraiser shows up.
I see it has been a bit since the last comment. Hope you are still available to respond.
We are looking at making an offer on a older home.
There is one room that needs some patching on the wall due to what looks like a tv mount being taken out incorrectly. Would this is a red flag?
Also, on the outside of the home, there is a thin horizontal crack in the cement above grade before the siding begins. the crack is not visible from the inside of the basement. I know cracks happen, but would this be a structural red flag?
Hi Mari. I suspect the TV mount damage is likely cosmetic. It’s hard to imagine a repair being required unless drywall was completely ripped open with a gaping hole. In short, a minor repair needed isn’t likely to be an issue. The appraiser who sees it will of course have a well-informed opinion. Cracks show up in lots of homes. It sounds subjective, but if it looks bad, then that’s when an appraiser might call for further investigation. In short, it’s going to be hit and miss with cracks. If appraisers called for structural investigation any time a crack was ever seen, there would be a real problem on closing escrows (even with my own house). But there are cases where something looks off and the appraiser should make the call for further investigation by a qualified professional.