How to make your home pass an FHA appraisal?
Six reasons that will stop your FHA loan
As an experienced Real Estate Appraiser, there are six top reasons that I continuously notice that will stop your FHA loan. If you are trying to go FHA financing, then I would suggest that the items below be reviewed and make sure that you’ve corrected all of the items below before the appraiser gets to your home. If these basic requirements are not corrected before the Real Estate Appraiser gets to your home, then he/she will have to make additional trip fees to make sure that you’ve completed the minimum requirements to meet these FHA guidelines. This will increase the cost of the appraisal and slow the loan process down. It will take longer to process your loan, so it is in your best interest to complete these basic items to prevent slowing down or cancelling your loan all together.
1. The paint on the exterior of the home is peeling and exposing the wood on the exterior siding and trim of the home. All garaging and barns, fencing and other outbuildings will also need to be scraped and painted. It is an FHA requirement that all surfaces be properly scraped and painted and that the paint chips be properly disposed of. The paint does not need to match. However, hardware stores will be able to match a paint chips color.
2. The roof will need at least two year of economic life. Basically, if the roof looks good and the roof does not leak at the time of the inspection, then this will pass FHA inspection. I watch for curling shingles or damaged shingles or water damage in the interior of the home. I look for moss on the shingles or other factors that weaken the life of the shingles or show that they have not been maintained. If they are beginning to curl, then I will call for a roof inspection or to replace the entire roof.
3. Water does not work properly. Does the water turn on? Do the toilets flush properly? Does the water smell? This may seam pretty basic, but it is important. Make sure the water does not have any smells or anything out of the ordinary. Make sure that there is no standing water next to the foundation or water in the crawl space.
4. Do the lights work properly? Make sure all lights can be turned on and that there are no wires hanging out of the electrical box or out of from around the light switches. Make sure that there are no exposed wiring anywhere, as this poses a safety hazard and will need to be inspected or repaired before an FHA loan will be provided.
5. Do the heating and cooling systems work properly? Make sure all heating and cooling systems can be turned on and off properly. FHA requires that each room be maintained at 60 degrees Fahrenheit.
6. If there are any cracks in the foundation or the home appears unsafe. These items will need to be corrected.
If you’re able to check these items off the list, then you’ll have a much better chance of getting your FHA loan.
To learn more about FHA appraisals, go to http://www.increasehomevalue.org/FHAappraisalguidelines.html