FHA Inspection Flags

Evan  Russell  The  Russell  Realty  Group  

2  

During an FHA Inspection, the big items that are always coming up are safety, soundness, and security issues like rotting (or eaten) wood, peeling paint, water damage, missing or broken siding or shingles, damaged structures including the foundation and exterior improvements like porches, garages, doghouses, etc. Throughout the report you we will show you the details.  

3  

4  

The FHA guidelines for property analysis include specific requirements to which appraisers must adhere for the appraisal to reflect an accurate valuation that win: •  Denote any deficiencies in the subject property

•  Protect HUD's interest in that property The property analysis includes General Acceptability Criteria for conducting the appraisal to address FHA minimum property requirements.

Site Hazards and Nuisances

•  Sinkholes

•  Active or planned gas-drilling within 300 feet

•  Within 75 feet of operating oil/gas well with no visible mitigation measures

•  Abandoned oil or gas well within 10 feet

•  Dwelling or improvements within 10 feet of easement for high-pressure gas or petroleum line

•  Dwelling or improvements within fall distance for overhead towers (high-voltage, radio/TV, cell phone etc)

•  Excessive smoke, fumes, offensive noises or odors

•  Stationary storage tanks with more than 1000 gallons of flammable or explosive material

5  

Soil Contamination Presence of the following may indicate unacceptable property condition:

•  Surface evidence of underground storage tank

•  Proximity to dumps, landfills, industrial sites that could contain hazardous materials

•  Presence of pools of liquid, pits, ponds, lagoons, stained soils or pavement

•  Grading does not provide drainage away from structures

•  Standing water near structures

6  

Individual Water and Sewage Systems

Presence of the following may indicate unacceptable property condition: •  Private sewage system show evidence of system failure

•  Separation between well and septic drain field less than 100 ft, (75 ft may be acceptable if local authorities allow.)

•  Separation between well and property line is less than 10 ft. (If local authority requires greater distance that requirement must be met.)

•  Property lacks connection to public water (Lender/jurisdiction may require water test and connection to public water if feasible)

7  

Wood Destroying Insects

•  Presence of the following will require a termite inspection and treatment if infestation is present:

•  Structure is ground level and wood is touching ground

•  House or other structure show obvious evidence of infestation

•  Local jurisdiction requires inspection

•  Inspection is customary to the area

8  

Private Road Access

•  Property inaccessible by foot or vehicle

•  Property accessible only by private road without permanent recorded easement

9  

Framing/Walls/Ceiling

•  Significant cracks

•  Visible holes in exposed areas that could affect structure

•  Damaged plaster, sheetrock, or ceiling materials in homes

•  Significant water damage

10  

Attic

•  Inadequate access

•  Evidence of holes

•  Support structure damaged

•  Significant water damage visible from interior

•  No ventilation by vent, fan, or window

11  

Basement, Crawl Space and/or Slab

•  Blocked or inadequate access

•  Evidence of significant water damage

•  Significant cracks or erosion in exposed areas that affect structural soundness

•  Blocked or inadequate access

•  Space inadequate for maintenance (recommended 18 inches)

•  Support beams not intact

•  Excessive dampness or ponding of water

•  Significant cracks that could affect structural soundness  

12  

Roof/Chimney

•  Missing tiles, shingles, flashing etc

•  Signs of leakage

•  Tuck pointing of chimney

13  

Furnace/Heating System

•  Unit does not turn on

•  Heat is not emitted

•  Unusual noise

•  Smoke or irregular smell

•  Significant holes or deterioration on unit

14  

Electrical System

•  Electrical switches don’t work

•  Outlets don’t work

•  Presence of smoke or sparks from outlet

•  Exposed frayed or unconnected wiring

15  

Plumbing System

•  Significant drop or limitation in water pressure

•  No hot water

•  Toilets don’t function or have been removed

•  Toilet leaks

•  Sinks/bathtub/shower leaks (very minor leaks may be acceptable)

•  Sinks/bathtub/shower does not work or have been removed

•  Swimming pools not operational, in bad repair or not maintained

16  

Paint

•  Chipped or peeling paint on interior or exterior of home and/or structures and improvements

•  Chipped or peeling paint on exterior surfaces if finish is unprotected (ie, bare wood)

17  

Summary

18  

ANY exterior improvements like porches, sheds, gazebos, garages, car ports, fences, and even doghouses (no kidding) which are in disrepair (including paint, rot and evidence of structural issues) must be remedied. Any rotting wood anywhere must be replaced. This goes for doors, door frames, sills, window sills, porches, railings, fences, etc. Any and all broken or missing siding or roof shingles must be replaced. House must be weather tight. Gutters don’t need to be painted unless they have peeling paint on them already. The focal point of the gutters is to make sure they are functioning and there is no evidence of pooling water against or near the foundation. Evidence of water damage anywhere – siding, attic, walls, ceilings, basement, etc. MUST be addressed.

Reference

19  

HUD’s handbook for reference. http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4905.1/49051c2HSGH.pdf http://www.qualifiedmortgage.org/fha-appraisal-overview.php Scott Murphy, Annie Mac Home Mortgage Smurphy@annie-mac.com 781.472.3900 ext 3924