"If we all did the things we are capable of, we would astound ourselves." ~ Thomas Edison 

Last week we had a client buying a home where the windows were painted shut.  It was a purchase loan using a FHA loan and FHA requires the at the windows all open for safety reasons.  I thought this may be a good time to review what repairs are typically needed if you do a FHA purchase (or USDA they use the same requirements).

Types of FHA Repairs That Must be Completed Prior to Closing an FHA Loan

• Peeling paint in homes built before 1978.
• Unpainted downspouts and broken rain gutters.
• Rotting out-building in need of demolition.
• Exterior doors that do not properly close and open.
• Exposed wiring and uncovered junction boxes.
• Major plumbing issues and leaks.
• Inoperable HVAC systems.
• Leaky or defective roofs, roofs with a life expectancy of less than 3 years, composition over shake.
• Active and visible pest infestation.
• Rotting window sills, eaves, and support columns on a porch.
• Bedrooms without minimize-sized windows or bedroom windows with bars that do not release.
• Foundation or structural defects.
• Wet basements.
• Evidence of standing water in the crawl space.
• Inoperable kitchen appliances.
• Empty swimming pools, pools without a working pump and pools with mosquito fish.
• Ripped screens.
• No pressure relief valve on water heater.
• Leaning / broken fence.

Types of FHA Repairs That are Not Necessary to Fix Before Closing

• Peeling paint in homes built after 1978.
• Cracked glass in windows.
• Minor plumbing defects such as a dripping faucet.
• Missing handrails.
• Damaged wall coverings in homes built after 1978.
• Worn out carpeting or defective floor finishes.
• Beat-up or damaged exterior doors that still open and close.
• Trip hazards such as heaving sidewalks.
• Removal of debris under the house.
• Lousy workmanship.
• Evidence of previous or inactive pest infestation.
• Replacement of flat roofs.
• Testing of wells, unless required by local jurisdictions or water is suspected of contamination. (USDA does require this)

Please remember the appraiser can call out specific items and with the current investor environment these items will need to be addresses if called out on the report.  In most cases this will also require the appraiser to come back to the site for a re-inspection to make sure the work was completed.

Have a fantastic week and remember we are here for you.  See you next week!

The Valeo-Croy Team - Call today

Todd Croy - NMLS #91428 NC, SC (704) 488-7763
Deanna Valeo - NMLS #91421 NC, SC, VA (704) 488-1421

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**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
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The Valeo-Croy Team and New American Mortgage Bankers are Equal Housing Lenders.This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for New American Mortgage to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply.   Date: 1/23/2012