The purpose of a FHA-required repair is to correct deficiencies that may affect the health and safety of the occupants or the continued marketability of the property. If possible, it is best for your client to make any repairs to your home prior to the appraisal. This will improve the marketability and help the sale the home go smoothly. Keep in mind that FHA requires that all improvements (i.e., detached garages, workshop, etc.) on the subject’s site meet their requirements.
- If the home was built prior to 1978, chipping, peeling paint must be scraped and painted. This includes interior, exterior, garages, sheds, fences, etc.
- Any useful components (appliances, floor covering, etc.) of the home, especially the roof, should have two years of useful life remaining. A roof should have no more than three layers of shingles.
- Broken windows and doors should be replaced. This generally does not include broken window seals unless it affects the marketability of the property.
- The cause of any negative drainage must be cured (i.e., improve drainage away from house and other improvements).
- Health and safety hazards (i.e. electric garage door opener won't reverse with resistance; burglar bars, large holes or cracks in ground, significantly cracked sidewalks or drives, dead tree, etc.).
- Exposed wiring (i.e., missing outlet covers, removed light fixtures). Again, this applies to any improvement on the subject site.
- Safety handrails should be installed in open stairwells of three or more stairs. This includes stairs inside as well as outside of the home.
- Infestation of any kind should be exterminated (i.e., insects, mice, bats, etc.). In the state of Texas, a termite inspection is always a requirement on all pre-owned homes.
- Damaged or inoperable plumbing, electric, and heating systems should be repaired. The appraiser will check these areas to the extent of turning them on and off and to looking at any obvious decencies (i.e., rust, physical damage, etc.).
- Structural or foundation problems must be repaired and/or an engineer’s report readily available showing that no structural deficiencies exists.
- Electricity not turned on for test check of HVAC, electrical system, etc. Water not turned on for the test of hot water, readily observed leaks, etc.
- If there is a crawl space and/or attic, it will be the homeowner's responsibility to make this area accessible so that it can be thoroughly inspected.
Keep in mind that these are the most common repairs and do not encompass the full list of requirements for an FHA collateralized property.