Buying a Home in Massachusetts With FHA Loans
Maximum Real Estate Exposure is owned by author Bill Gassett.
Are you planning on buying a home? Â FHA loans are a popular financing option for many homeowners looking to purchase a Massachusetts home.
However, it is essential to understand the inspection requirements that must be met before an FHA loan can be approved. By understanding the rules, you won't waste time pursuing a property that won't work.
What is an FHA Appraisal Inspection?
An FHA appraisal inspection is a requirement for all potential homebuyers who are looking to use an FHA loan to buy a home. The appraisal is done by an approved and licensed appraiser who looks at the home's condition, value, and other factors that might affect the loan eligibility.
The appraiser is sent to the home to check for any issues that must be addressed before the property can be eligible for the loan.
The appraiser will look at the home's overall condition, including the exterior and interior. They will note any repairs needed, the estimated market value, and other factors affecting the loan.
The appraiser will also assess the safety to ensure it meets all FHA requirements.
Once the appraiser has finished their inspection, they will provide a report that outlines the condition and any repairs or improvements that it needs to pass.
The FHA appraisal report is then sent to the lender. The mortgage lender will review the report and determine if the property is suitable for an FHA loan.
If the home meets all the requirements, the lender will move on to the next phase in the mortgage approval process.
What Are The FHA Loan Inspection Requirements For Massachusetts Homes?
The FHA loan inspection requirements for Massachusetts homes are outlined by the Federal Housing Administration (FHA). These requirements must be met for a loan to be approved. These requirements focus on the property's safety, soundness, and security.
You can expect an FHA appraiser to be looking at the following items:
- If the home was built before 1978, whether there is any peeling paint.
- Missing handrails on a deck or stairway that could be a safety issue.
- Gutters that are not soundly attached to the home.
- Exterior doors that are not opening and closing correctly.
- Uncovered junction boxes with exposed electrical wiring.
- A heating system that is not operational.
- Plumbing issues that are a significant problem.
- No active pest issues. This may require an inspection.
- A roof that will not last at least three years or currently has leakage.
- Rotted exterior wood trim.
- A functioning stove must be part of the sale.
- Having a bedroom without legal-size windows for proper egress by a human.
- Foundation cracks that could be considered a structural problem.
- Water coming into the basement.
- Having standing water in a crawl space.
- Empty swimming pools or pools that don’t have a working pump.
- Screens that are badly damaged.
- A fence that is in significant disrepair.
What Happens When an FHA Appraisal Flags Items That Need Repair
The buyer or seller is responsible for any repair costs, and the loan can be denied if the repairs are too expensive.
When an FHA appraiser discovers issues during their inspection, they must be addressed and remedied for the loan to be approved.
Buyers and sellers should agree upfront on who will tackle any issues arising from the inspection.
It is vital to note that the buyer or seller must complete the repairs before the loan can be approved. Once the work is completed, the FHA appraiser will return to the property for a re-inspection.
Peeling paint is one of the most common areas of a home that gets flagged.
By understanding the FHA appraisal inspection requirements and the possible need for repairs, you can ensure that your Massachusetts home is eligible for an FHA loan.
Taking the time to understand the process and the requirements can save you time and money in the long run.
An FHA Appraisal Inspection is Not The Standard Buyer's Home Inspection
It is essential to understand that the buyer's home inspection differs from an FHA appraisal inspection.
The buyer's home inspection is an important part of the home-buying process. It is an independent inspection by a professional home inspector to assess the condition of a property.
A buyer's home inspection will provide a comprehensive evaluation of a home's major systems, including the electrical, plumbing, heating/cooling, roof, foundation, and other components.
The report will also identify significant defects and recommend further investigation or repairs.
As we have discussed, an FHA appraisal inspection is a requirement of the FHA to provide a loan.
As you might expect, an appraiser's inspection is not nearly as thorough as a professional home inspector's.
Final Thoughts on FHA Inspection Requirments
Whenever utilizing FHA financing, it is crucial to have a basic understanding of the condition requirements. If the seller is not planning on doing any work, buyers and their agents must understand this upfront.
A listing agent should clarify this from the onset so no disagreements waste everyone's time and money.
Did you enjoy this advice on what to know about FHA loan inspection requirements when buying a home in Massachusetts? See other real estate articles on NewsBreak for more timely tips and advice. Bill often writes about general real estate, mortgages, finance, moving, and home improvement.
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