Understanding FHA appraisal guidelines so that you'll get your loan

<<>> FHA appraisal guidelines have changed quite a bit over the years. Whether your buying, selling or refinancing a home, you'll need to understand what appraisers look for so that your home will have the highest probability of passing.

Many of the appraisal requirements changed in 2005 via the Mortgagee Letter 2005_ML-48. To learn the 21 main things you'll need to know to make your home pass, keep reading. The appraiser is required to report ALL issues with the home, but automatic repair is not required for all issues. Per FHA, the issues below must be corrected.

Make sure that the exterior and interior of your home is scraped and painted properly

If your home is built in 1978 or it's older, make sure that the paint is not peeling anywhere around your home, barn, fencing, porch, deck or sheds. This an FHA requirement. If the paint on your home is peeling, you'll need to fix this before FHA will give you a loan. Make sure you have a professional scrape and paint the home, as there are risks involved with lead based paint. A professional painter will wet scrape the paint so that dust and lead based paint is not floating around and landing on kids toys and being inhaled by you or your friends. The paint will be properly removed. Do not leave the paint chips in the dirt, only for the kids to eat next summer. This is one of the most important FHA appraisal guidelines and one of the most common overlooked items in my area.

Inadequate access/egress from any of the bedrooms that are either in the basement or on the main level of the home

This is a safety issue. If you have dens that you use as bedrooms, you will not have to make an egress window, but it is recommended that if anyone is sleeping in the basement, make sure there is an egress window so that adults can get into the home in case there is a fire and adults and/or children can get out of the home in case there is a fire. If your home offers security bars around the home, they must have release mechanisms that are on the inside of the home and that they are not operated by a key, because you are not going to want to look around for a key when the house is burning down.

Leaking and worn out roof

If the shingles on the roof are beginning to fall off or peel up like black, burned potato chips, get the roof replaced before the roof starts to leak and damage interior items and cause other problems such as mold issues and damaged sheet rock.

Standing water next to the foundation or damp/wet basements

If there is standing water next to the foundation, get rid of it. The best way to do this is to be sure that downspouts are away from the home so that water runs away from the home. Next, look at the way the land flows around the home. If you can change the grade of the land next to your home that will direct water away from your home, do it. This may stop the water from getting to your home. Install drains in and around your home. This will lead water away from your foundation. If none of these suggestions work, think about installing a sump pump. Some people install a sump pump outside the home or inside the home, in the basement or in the crawlspace.

Hazardous material on the site

If you have open barrels of oil or gas, old junker cars and car parts, car batteries and other materials that looks like a person can get hurt, get rid of them.

Faulty electrical, plumbing or heating systems

The appraiser will check the water, electricity and plumbing. Basically, they will make sure that these items appear to be in good working order, no smells and no exposed wiring and the heater works properly.

Structural issues such as settling foundation or bulging, foundation walls

Anything that doesn't look safe will have to be tested or inspected to be sure the home is sound and that it is safe. Appraisers will look for major cracks in the basement and around the windows and make sure that the doors and windows open property. I once went to a home where there foundation was cracked so bad you could see light from inside the garage. This shift in the foundation affected the opening of the doors, windows, plumbing and electrical.

The appraiser will also have to have access to the crawl space and the attic

This means that the opening must be accessible and large enough so that a normal sized human can crawl into the crawl space if needed. I went to a home the other day when the access was 6 inches tall. This looks like it is just enough room for a cat. If this is the case, you'll have to cut a larger hole in the crawl space and fit it with a door. This is the same for the attic area. If you can not provide access, the appraiser will have to reschedule and come back at a different time. Make the opening at least 18 inches or more or enough for a person to get access to this area.

Some items may require an inspection. Some of these items are listed below

Check these FHA appraisal guidelines. Some of these items may need an inspection or a repair, but this is depends on what your appraiser notices.

Wood destroying insects and organisms for existing properties: An inspection is required only if there is evidence that there are insects in or around the home that are causing damage.

The well for existing homes does not need to be tested unless.

1 it is mandated by the state or local jurisdiction.

2. If there is knowledge that the water is contaminated and relies on a water purification system or

3. When there are corrosion of pipes, intensive agriculture within 1/2 mile, coal or gas operations within 1/2 mile, dumps and landfill, gas stations, dry cleaning operation within 1/4 mile, tastes or smells in the water.

Septic does not need to be test unless there is evidence of the septic system that is failing.

The septic tank, drain field and the well must be 10 feet from the property line. The septic tank must be 50 feet from the well water. The drain field must be 100 feet from the well water. If not an inspection may be required.

Flat roofs or unobservable roofs no longer need to be automatically tested.

Some items that used to require automatic repair are no longer required include the following

1. Missing handrails. This used to be an automatic repair. Now this is no longer required by FHA, but it is required by some banks and lending institutions.

2. Cracked or damaged doors that are still in good working order. If they function properly, there is no need to require the door to be replaced.

3. Cracked windows. If the window is cracked there is no need to replace the window. If the window is broken and showing sharp edges of glass, I'd replace it as this is a safety hazard.

4. Flooring that is worn to the finish and dirty carpet does not need to be replaced.

5. Rotten or worn out counter tops do not need to be replaced or fixed

6. Damaged plaster or Sheetrock post 1978 does not need to be repaired or fixed

7. trip hazards from sidewalks, carpeting that needs to be stretched or roots do not need to be automatically fixed.

8. Debris and trash in the crawl space is no longer required to be removed, but it is recommended by most appraisers.

9. Smoke detectors do not require automatic installation, but they are recommended by most appraisers.

While these items do not require automatic repair, all of the items have to be considered in the overall value determination. So the more of these items that you can correct, the better chances that you'll have to pass the appraisal requirements for FHA and your bank so that you'll have a better chance of getting your loan. So print these out and make sure you have your FHA appraisal guidelines with you and get these things completed before the appraiser gets there. It will make your loan close faster.

Make your home pass the appraisal

Tips for getting a mortgage

You are welcome to link to any of my articles. Please provide a live link. Please do not copy my articles word for word and put them on your site. Thank you.