FHA appraisals are designed to provide safe housing, therefore there are specific things that an FHA appraiser must inspect to meet the FHA guidelines. Due to these guidelines you can encounter many different issues during FHA appraisal inspection, some issues seem to appear more frequently than others, these are issues San Diego homeowners should be aware of when pursuing an FHA loan as any of these items could delay or cause problems for your transaction. It is helpful to be proactive by correcting any of the potential problems that may occur before the FHA appraisal inspection.
According to the U.S. Department of Housing and Urban Development (HUD), FHA’s are required to reach the minimum standard of safety, soundness, and security. These are required to protect the health and safety of occupants as well as making sure that there are no physical deficiencies that affect the structure of the home. All FHA approved appraisers must follow these guidelines when appraising a home. Some examples of things that can cause a delay in an FHA transaction are:
- Carbon Monoxide Detectors — Per The Carbon Monoxide Poisoning Prevention Act of 2010, carbon monoxide detectors (CO2) are required to be installed in every home (typically by the bedrooms) that will be used for human occupancy. This means that a CO2 detector is required in every dwelling that has a fossil fuel burning appliance, heater, fireplace or an attached garage.
- Water Heaters Earthquake Strap – All water heaters with the exception of a tankless water hater require a double earthquake strap. These straps are placed on the lower and upper portion of the water heater.
- Temperature and Pressure Relief (TPRV’s) and Overflow Pipes – All water heaters are required to have a non-adjustable temperature and pressure relief valve as well as an overflow pipe.
- Defective Paint on Pre-1978 Homes – All homes but especially ones that were built before 1978 are required to repair any chipping, scraped, or peeling paint. Lead based paint was outlawed in 1978 however many homes built prior still have lead in the paint.
- Roof Requirements– Per FHA guidelines roofs must provide durability, utility, maintenance, and should have two years remaining of physical life. Therefore any leaks or moisture from the roof must be repaired or the home should be re-roofed.
- Electrical Wiring and Heating System — No exposed or frayed electrical wiring can be in the home. In addition, all outlets require a cover and all homes require a heating source such as and FAU, wall heater, or floor.
- Utilities Must Be Turned On – It is very common, especially for a vacant home for the utilities to be turned off. However, for an FHA appraisal to pass, all of the utilities must be turned on for the appraiser to inspect. It is necessary utilities are turned on to be sure that there are no problems with plumbing, running hot water, heating units, central air, gas stove burners, lighting, outlets, and more. If the appraiser inspects the property when the utilities are off they will have to make the report “subject to utilities being turned on” and will have to go back out to the property when they are turned on, delaying the FHA loan.
Many homeowners forget are are unaware of many of these requirements and often cause delay in the FHA loan process. To avoid this, make repairs prior to inspection and be aware of these issues when dealing with FHA loans. Something else to note is that an FHA appraisal is not a guarantee that your property will not have any defects or problems. We highly recommend that you higher a qualified professional inspector to check your home for potential problems.
I hope this article has been helpful and informative, please call with any questions.
Brandlin Appraisals Inc. specialize in helping people who need appraisals for estate purposes, divorce, date of death, bankruptcy, FSBO’s and more throughout San Diego county. For more information please contact us at (760)741-7699, or visit our website at Brandlinappraisals.com, or email us at admin@brandlinappraisals.com
Mike Brandlin
San Diego, CA // Real Estate Appraiser
www.brandlinappraisals.com
(760) 741-7699
San Diego Real Estate Appraisal Services For:
* Divorce Appraisals / Marriage Dissolution
* Bankruptcy Appraisals
* Bail Bonds Appraisals
* Estate / Date of Death / Retrospective Appraisals
* Financial Planning & Trusts
* PMI Removal Appraisals
* Pre-Foreclosure & Short Sales
* Tax Assessment Appeals
* Pre-Listing, Pre-Purchase, FSBO’s
* Probate Appraisals
