FHA Repair Guidelines
October 2nd, 2008 categories: For Buyers, Phoenix Foreclosures, Real Estate News
If you are buying a home in Phoenix and plan to use FHA financing, there are some important things to consider regarding inspection findings.
FHA has shifted from the emphasis on repair of minor items and now only requires for conditions above and beyond minor cosmetic repairs or minor defects.
This is an important consideration, especially with the increasing number of Phoenix Foreclosures which are usually sold “As-is”. It is important that the buyer is aware of repairs that will be required by FHA, and if the seller refuses to make the repair, the cost may be passed on to the buyer, if they choose to proceed in purchasing the property.
Minor Property Repairs that will NOT require automatic repair:
- Missing handrails
- Cracked or damaged exit doors that are otherwise operable
- Cracked window glass
- Defective paint surfaces in homes constructed post 1978
- Minor plumbing leaks (leaky faucets)
- Defective floor finish or covering
- Evidence of previous (non-active) Wood Destroying Insects (Termites) where there is no evidence of structural damage
- Rotten or worn out counter tops
- Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978
- Poor workmanship
- Trip hazards
- Crawl space with debris and trash
- Lack of an all weather driveway surface
Repairs that WILL require automatic repair for existing properties (list is not all inclusive):
- Inadequate access/egress from bedrooms to exterior of home
- Leaking or worn out roofs (if 3 or more layers of singles on leaking or worn out roof, all exsisting shingles must be removed before re-roofing)
- Evidence of structural problems (such as foundation damage caused by excessive settlement)
- Defective paint surfaces in homes constructed pre-1978
- Defective exterior paint surfaces in homes constructed post -1978 where the finish is otherwise unprotected
- Standing water against the foundation and/or excessively damp basements
- Hazardous materials on the site or within the improvements
- Faulty or defective mechanical systems (electrical, plumbing, or heating)
- Evidence of possible structural failure (e.g. settlement or bulging foundation wall)
Additionally, FHA no longer mandates inspections for the following items:
- Wood Destroying Insects (Termites)- in my opinion, all buyers should have this inspection.
- Well- however this inspection may be required per state or local jurisdiction
- Septic: again-may be required by state or local jurisdiction or if there is evidence of failure.
- Flat and or/unobservable roof.
For more information on FHA requirements visit www.hud.gov
