FHA LOAN PROPERTY REQUIREMENTS
If you’ve been looking at homes and plan on obtaining an FHA mortgage loan, this article is a must read!
FHA is one of the most popular loan programs in today’s Florida mortgage market. With a very doable 3.5% minimum down payment requirement, coupled with less stringent underwriting guidelines, the FHA loan has been the go to program for new and upgrade home buyers alike. FHA loans are great, as long as you know what to look out for. You must understand that when planning on using an FHA loan to purchase a home in Florida, the condition of the property is a HUGE factor in whether or not you will be able to get a loan approval! FHA is very concerned with safety, as the below list of requirements would indicate.
Here is a brief list of the areas that MUST be repaired prior to getting an FHA loan approved:
Site Hazards and Nuisances
Sinkholes
Active or planned gas-drilling within 300 feet
Excessive noise or hazard from heavy traffic area
Dwelling or improvements within fall distance for overhead towers
Excessive smoke, fumes, offensive noises or odors
Grading and Drainage
Grading does not provide drainage away from structures
Standing water near structures
Individual Water and Sewage Systems
Private sewage system show evidence of system failure
Separation between well and septic drain field less than 100 ft.
Separation between well and property line is less than 10 ft.
Wood Destroying Insects
Structure is ground level and wood is touching ground
House or other structure show obvious evidence of infestation
Framing/Walls/Ceiling
Significant cracks
Visible holes in exposed areas that could affect structure
Damaged plaster, sheetrock, or ceiling materials in homes constructed before 1978
Significant water damage
Attic
Inadequate access
Evidence of holes
Support structure damaged
Significant water damage visible from interior
No ventilation by vent, fan, or window
Slab
Significant cracks that could affect or indicate structural soundness
Roof
Missing tiles, shingles, flashing etc
Signs of leakage
Heating/Cooling System
Unit does not turn on
Conditioned air is not emitted
Unusual noise
Smoke or irregular smell
Significant holes or deterioration on unit
Electrical System
Electrical switches don’t work
Outlets don’t work
Presence of smoke or sparks from outlet
Exposed frayed or unconnected wiring
Plumbing System
Significant drop or limitation in water pressure
No hot water
Toilets don’t function or have been removed
Toilet leaks
Sinks/bathtub/shower leaks
Sinks/bathtub/shower does not work or have been removed
Other
Missing or inoperable exterior doors
Broken or missing stairs
Absence of built-in appliances
Swimming pools not operational, not maintained, or in need of repair
The appraiser that is sent out to the property to ascertain the value will be the one inspecting for these items. You can save yourself a ton of headache by referencing this list when looking at Florida homes for FHA purchase. If one or more of these items is an issue with the property, address it before going in to contract and let the seller know that you are applying for an FHA loan. Communication is the key, be open and honest and your home purchase will go much smoother.
