FHA

Does FHA Allow Shallow Wells?

November 25, 2014 Appraisal
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  I’m surprised by how many times I run across something like this. This is a shallow sand-point well that services the homes water supply located within the basement. The water test may indicate that everything is fine, but would you want this type of water supply servicing your home?  Here are a few of FHA […]

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HUD Homes And The Three Appraisal Conditions

April 27, 2012 FHA
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There always seems to be some confusion when it comes to appraisals and HUD homes regarding the insurable code that was assigned to it. For every HUD home listing, the appraiser that did the appraisal determined what it’s going to take for the property to meet HUD’s minimum property standards (MPS). The home has also had an inspection preformed […]

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FHA Appraisals and the “Head and Shoulders” Test

April 24, 2012 Appraisal
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When doing FHA appraisals the appraiser is required to do what is called the “Head and Shoulders” test. The appraiser is required to inspect the attic and basement/crawl space to at least the head and shoulders level. The appraiser should use a flashlight or similar device to illuminate the space being inspected; photographs are required […]

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Does FHA Require Appliances

March 6, 2012 FHA
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Sometimes I find myself scratching my head wondering how some of these myths get started in the first place. FHA doesn’t require appliances, all they require is a cooking area. If there are appliances already at the property, then they’ll have to be operational and meet local safety codes.  HUD-MPR states in 2-9 SPACE REQUIREMENTS. […]

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What We Have Here Is A Failure To Communicate!

February 13, 2012 Appraisal
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Photo’s From A Recent Appraisal Inspection Believe it or not, there are some properties that just aren’t capable of going traditional financing. I was recently sent to appraise a property that I knew was going to be a challenge as soon as I pulled-up. This appraisal was for an FHA loan, and from the street (50 feet […]

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FHA And HUD Mortgagee Letter 2005-48

February 12, 2012 FHA

If you’re an appraiser, or a real estate agent that plans on working with FHA financing, then you should really acclimate yourself with ML 2005-48 (see below). I’ve highlighted the parts that I feel are significant and important to understand. I would pay particular attention to the “Repair Requirements,” because I think this is were most of […]

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FHA and Cracked Windows

February 8, 2012 FHA
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One of the major challenges homeowners face when having one of the sale of their home go FHA financing, is what work orders is the appraiser going to call for. With Fannie Mae and Freddie Mac in everyone’s crosshairs, FHA financing is only going to become more prevalent within the housing market. I would highly recommend that […]

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FHA and the Three S’s

January 25, 2012 FHA
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FHA guidelines state that a house has to meet MPR (minimum property standards) for existing houses, and MPS (minimum property requirements) for new construction. FHA is very concerned with the three S’s: Safety, Security, and Soundness. When a Realtor was asked what the three FHA S’s were, he replied, “Stupid, more stupid, and seriously stupid FHA appraisers,” which […]

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FHA Appraisals and High Voltage Power Lines

January 25, 2012 FHA
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FHA Appraisals and High Voltage Power Lines Many times there are circumstances that real estate professionals don’t have to deal with on a regular basis, and power lines are one of them. Understanding what to do will keep your sale from being….Zapped!!! I recently had a Realtor friend call me in a panic; a house […]

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“The Green Monster” FHA and Abandoned Fuel Oil Tanks

January 21, 2012 FHA
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The Green Monster   When I was appraising a house the other day I came across this fuel oil tank in the basement, which is slightly uncommon given where the house is located. I asked the homeowner about it, in which she replied, “You mean that dirty old Green Monster in the basement, we quit […]

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