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Mortgage Definition: FHA Required Repairs

Date:September 29, 2010 | Author:Michael Price | Category:Mortgages

This week, Mortgages Unzipped author Justin McHood defines what “FHA Required Repairs” means. If you’re not familiar with this term, it is a phrase that is very contemporary to today’s real estate landscape. If a property is to be financed as an FHA loan, there exists a clearly defined list of what must be repaired before the loan is funded.

“When buying a home and planning on getting an FHA loan for the property, be sure to be aware what kinds of repairs are required repairs… it can help you avoid surprises in the financing process.”

Sage advice indeed!

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Responses (7)

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Pat Falbo 6:18 AM - Sep 30,2010

can you print a list of the FHA required repairs?

or where can I get the list

Thanks, Pat
Kyle Bairdsen 6:57 AM - Sep 30,2010

Since FHA loans require less down payment, they want the house to be in good condition.

A lot depends on the individual FHA appraiser but FHA loans need the water, electricity, and hvac system to be operational, a clear termite letter, and no obvious problems with the house. Some marks on the paint or a few stains on the carpet or some streaking on the roof shingles may be acceptable.

I recommend submitting offers with “any FHA appraiser required repairs to be considered negotiable items” with a normal seller to give them a heads up about the process.

Many foreclosed homes will not qualify by FHA standards of repair, so many asset managers will not accept FHA financing for this reason. Contact your agent for the best way to proceed in this case.

Yours,
Kyle Bairdsen
Fairfax Realty, Inc
Columbia, SC
Zillow Team 2:25 PM - Sep 30,2010

Kyle, thanks for the detail!

Pat, email me mprice at zillow dot com

I will find that list for you!

Cheers,
Mike
Chris - Austin Owner Finance 3:32 PM - Sep 30,2010

1 word.. pre-inspection! Or is that 2 words? Either way, saves a lot of headaches!
Paula 8:03 PM - Oct 19,2010

I applied for a FHA loan and I have found a nice home the water heater is gone. The real estate agent said in order to get the house I have to put in the water heater before inspection so FHA will approve the house. But the real estate agent said I can’t take it out if something else is wrong with the house.What if I let them know in writing that I will get it after I am approved for the house. The real estate agent said he don’t know if seller will put one in. Can FHA reject the house because someone took the water heater and I would replace it if approved for home.
Kyle Bairdsen 10:48 AM - Oct 20,2010

Paula, there’s no way for anyone on the internet to help with that. What if your repair ends up flooding the house or something? Could be thorny. Brainstorm with your agent and your lender for options. FHA loans + stubborn sellers often means no deal. Maybe ask the seller to make the repair and make some of your earnest money non-refundable and add the cost of the repair to the price of the house if the appraisal and local customs/legalities allow it?