FHA Property Standards
FHA Property Standards ensures new homeowners are purchasing a safe property. “HUD requires every property to be safe, sound, and secure to be eligible for FHA insurance”. The property must also comply with HUD’s Minimum Property Requirements and Minimum FHA Property Standards. The requirements and standards are the basis for identifying the deficiencies of the property that the appraiser must note within the appraisal report and that must be addressed by the borrower before closing.
Appraisers must report all readily observable property deficiencies and adverse conditions discovered while performing the appraisal.
Cosmetic/minor repairs are not required for FHA Property Standards; however, they must be reported by the appraiser and considered in the overall condition when rating and valuating the property. Some examples of cosmetic repairs include:
– missing handrails that do not pose a threat to safety
– holes in window screens
– cracked window glass
– defective interior paint surfaces in housing constructed after 1978
– minor plumbing leaks that do not cause damage (such as a dripping faucet)
To assist in expediting the appraisal process, it is suggested to make the following repairs prior to scheduling an FHA appraisal inspection:
- Defective paint surfaces (i.e. scrape, sand, fill, prime, paint).
- Leaks (i.e. plumbing, HVAC, roof, foundation, etc.).
- Foundation/structural settlement.
- Defective roofing.
- Loose/missing handrails.
- Defective and exposed electrical wiring.
- Properly install required safety items such as GFCI outlets, smoke detectors, carbon monoxide detectors, water heater pressure relief valves/extension pipe/straps, etc.
- Windows/doors and their locks (broken/inoperable).
- Overhead garage door openers.
- Stairs, walks, driveways, flooring, etc (broken/uneven/loose).