Common FHA Real Estate Repair Items
The Real Estate Appraiser will need to report the following items when conducting an FHA appraisal inspection. It’s a good idea to be prepared ahead of time to correct any of the problems listed below before the real estate appraiser conducts an FHA inspection.
1. Utilities must be turned on and operational at time of inspection: The assessor must check all utilities and mechanical services to ensure they are turned on and operational. This includes houses that are vacant. Utilities include heating/cooling systems, dishwasher, stove, lighting, and plumbing items such as faucets and toilets. If the utilities are not working, the appraiser will need to put a condition on the appraisal, and this will delay the loan process. The appraiser will then have to return to the property to verify that the utilities are turned on and operational.
2. Chipping/peeling paint on pre-1978 structures. According to the FHA, the lead paint problem still exists. In homes built before 1978, any peeling or chipping paint should be corrected. It consists of scraping, sanding and repainting the affected area. Old paint must be cleaned from the floor and disposed of properly. See the EPA website link for more information on lead-based paint.
3. Missing Carbon Monoxide Detector – Under the California Carbon Monoxide Poisoning Prevention Act of 2010, detectors are required to be installed in each residential dwelling unit that will be used for human occupancy. This requires properties to have a detector in homes that have a fossil fuel burning appliance, fireplace, heater, or garage attached to the home.
4. Earthquake straps on water heaters: Water heaters should have double straps on the lower and upper thirds of the tank. The exception is “tankless” water heaters. Also, overflow piping and temperature pressure release valves (TPRV) must be present with the water heater.
5. Broken windows: For the FHA, small cracks in windows are not a big deal. However, if the window is broken or there are shards of glass, it is a safety issue and will need to be repaired.
6. Exposed/frayed or uncovered wiring: Exposed wiring can cause severe shock and/or fire and should be repaired. This is mostly found in older houses. Missing outlet covers and light switches should also be corrected.
7. Access to Attic and Underground Space: The appraiser is required to inspect the attic with a minimal “head and shoulders” look into the space. There must be a suitable entrance to the attic and a basement for the appraiser. It’s best to make sure this area is clear before the inspection so the appraiser can easily access it.
8. Roof Condition: The roof must not leak or allow moisture to enter the home. The roof must have two years of its remaining economic life.
As you can see, there are quite a few items that the appraiser must check to meet FHA safety guidelines. An FHA appraisal does not guarantee that the property is free from defects. We always recommend that a home buyer hire a certified home inspector. They are specifically trained to take a very detailed look at the condition of the house.