![]() Wood/soil contact that is not due to a structural problem will no longer require repair.Ī satisfactory inspection by a licensed civil engineer is required. Evidence of active pest infestation will require an inspection. Minor (non-structural) termite damage will not require repair. HUD will no longer automatically require a termite inspection. Grading must be adequate to drain away from house. Large settlement cracks, sagging floors or roofs, and significant deteriorated wood are conditions that require professional repair. HUD does not have a minimum setback for EPA super-fund sites but if contamination of the property is suspected an environmental assessment inspection may be required. If the property is within 300 feet of a stationary storage tank containing more than 1000 gallons of flammable or explosive material, the site is ineligible. Proximity to high voltage power transmission lines is acceptable if the property is outside of the easement. Proximity to highways and railroads is acceptable with acceptable noise levels. ![]() These lines may not pass directly over any structure, including pools, on the property being insured by HUD. These lines are usually 12 kV or less and are considered to be a minimum hazard. Low voltage power lines are distribution lines that commonly supply power to housing developments and similar facilities. HUD no longer requires a maintenance agreement for private roads. ![]() Condominium projects must be on the HUD approval list unless spot loan approval is given. Projects must be at least 51% owner occupied and may not have a "right of first refusal" clause in the association documents. Any re-sale within six months that is more then double the original price will require two appraisals. Any re-sale cannot occur within 90 days of a previous sale. inoperative or inadequate plumbing, heating or electrical systemsįlipping is a practice whereby a recently acquired property is resold for a considerable profit with an artificially inflated value.Typical conditions that would require further inspection or testing by qualified individuals or entities: other readily observable conditions that impair the safety, sanitation or structural soundness of the dwelling.Other cosmetic items that do not otherwise jeopardize the safety or structural integrity of the property are acceptable and will not require repair, however it must be disclosed in the appraisal and must be considered in the final value estimate.Ī property with defective conditions is unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. Cosmetic repairs are not required however, they are to be considered in the overall condition rating and valuation of the property. The most recent changes are highlighted bold on this checklist.Ī lack of maintenance that gives a “run down” look to a property is acceptable, however it must have at least an “Average” overall condition rating. By eliminating many of the “nuisance” repairs and mandatory inspections HUD hopes to make it easier to buy or sell a home with FHA financing. ![]() While these standards have varied over time the recent changes have been some of the most dramatic in decades. Contact me at 425.754.9500 or Email: its inception The Department of Housing and Urban Development (HUD) has established minimum property standards. This checklist was created by Geoff Peters, Washington State Certified Residential Real Estate Appraiser. Its intended use is for real estate agents who need a basic understanding of HUD property requirements. Different lenders and appraisers will have their own interpretations. It is only one individual’s interpretation of HUD requirements and is subject to frequent revision. This list does not represent official HUD policy and is not intended to be all inclusive. The following is a list of common problems that need attention when financing a property with an FHA loan in the Puget Sound Region.
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