Prepare for an FHA Appraisal Inspection
When you're using an FHA loan to buy or refinance a home, the FHA home appraisal is a critical step. This appraisal assesses both the value of the property and its compliance with the FHA’s stringent property standards. At First Class Appraisal, we understand the importance of preparing your home to meet these requirements. The FHA Handbook offers and extensive detailed look into many guidelines. As an appraiser, we abide by the FHA Handbook and propose repairs necessary to make the property comply with the Minimum Property Requirements (MPR) or Minimum Property Standards (MPS); These recommendations are based on a visual observation of the property. As an experienced appraiser in the South Florida market, we want to provide a brief overlook into common deficiencies noted which require final inspections. To avoid lengthy appraisal periods please keep in mind some of the common repairs noted.
Examples of Required Repairs
Required Repairs: Required repairs are suggested leveraging the FHA Handbook. These are limited to those necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants, also known as the three S’s:
Safety: Protect the health and safety of the occupants.
Security: Protect the security of the property (security for the FHA-insured mortgage).
Soundness: Correct physical deficiencies or conditions affecting structural integrity.
Listed below are the most common FHA repairs or requirements noted by FHA appraisers. These items, if noted by the FHA appraiser, will need to be corrected prior to proceeding to settlement.
1. Lead-Based Paint
If the improvements were built before 1978, then properties should be free of defective paint (chipping, flaking or peeling) in all interior and exterior surfaces – stairs, deck, porch, railing, windows and doors. If present, then these areas need to be repainted. FHA’s Lead-Based Paint Requirements
2. Windows
Broken windows must be replaced to ensure safety and security. Functional windows are essential for the property's security. FHA Guidelines on Windows and Doors. This includes, in some cases, the presence of Security bars which must be equipped with safety latches and must be accepted by local fire codes.
3. Handrails
Handrails must be installed on stairways with three or more steps to prevent falls and ensure occupant safety. FHA’s Safety Standards
4. Infestation
Any type of infestation, whether it’s insects, rodents, or termites, must be exterminated. The extermination should come with a 12-month warranty/guarantee. HUD’s Pest Inspection Guidelines. If your property has been treated for infestation, make sure evidence of former infestation is cleaned and documented.
5. Exit Doors
Cracked or damaged exit doors that are otherwise restrict ingress/egress must be repaired or replaced to accommodate for emergencies. FHA Guidelines on Egress
6. Trip Hazards
This is summarized to abrupt change in vertical elevation or horizontal separation in walking surfaces. This can sometimes be seen in poorly installed flooring or missing transition strips. These hazards must be corrected to prevent accidents. FHA Guidelines Trip Hazards
7. Inadequate Access/Egress
Bedrooms must have proper access to the exterior of the home, typically through a window or door, to ensure occupants can exit safely in an emergency. FHA Guidelines on Egress
8. Structural or Foundation Problems
Although appraiser is not licensed structural engineers, we must perform a visual observation of the foundation and structure of the improvements. Structural or foundation issues, such as foundation damage caused by excessive settlement, bulging foundation walls, or standing water against the foundation, must be repaired. FHA Foundation Requirements
11. Roof
The roof should have at least 2-3 years of useful life remaining. Common observation may include evidence of interior leaks or cracked roofing tiles. FHA Roof Requirements
12. Mechanical Systems
Mechanical systems must be safe to operate, protected from destructive elements, have reasonable future utility, durability and economy, and have adequate capacity. The appraiser must observe the physical condition plumbing, electrical, and heating systems. These systems must be functional. If there are any visible damages or the system is inoperable, it must be repaired. This includes fixing leaky faucets, running toilets, or overloaded electrical systems. FHA Policy Handbook
13. Swimming Pools
Swimming pools in FHA appraisals must comply with all local ordinances. The pool must be operational to contribute to the property’s value, and any observable defects, such as structural issues, mold or instability, must be repaired or the pool filled in according to local guidelines. If the pool is not operational or if its condition cannot be determined, the appraiser is to complete the appraisal under the extraordinary assumption that the pool will be restored to full working condition.
14. Provide proper access:
To attic, crawlspace, mechanicals, etc.
Tips and Tactics:
Lead-Based Paint: If your home was built before 1978, any chipping or peeling paint must be scraped and painted. This includes interior, exterior, garages, etc.
Roof Lifespan: Ensure your roof has at least two years of useful life remaining.
Drainage: Address any negative drainage issues, such as water pooling around the foundation, by improving the drainage system (e.g., gutters, French drains).
Safety Handrails: Install safety handrails on open stairwells with three or more steps.
Infestation: Exterminate any signs of infestation, including insects, mice, and bats, and ensure the extermination comes with a 12-month warranty.
Preparing for an FHA home appraisal with First Class Appraisal ensures that you’re ready for every aspect of the process. From addressing necessary repairs to understanding the appraisal process, taking these steps will help ensure a smoother experience and avoid potential delays in your FHA loan approval.
For more information and expert appraisal services, visit First Class Appraisal. Let us help you navigate the FHA appraisal process with ease.
Comments