WILL THIS HOME QUALIFY FOR FHA OR VA FINANCING?

If a buyer is going to purchase a home using an FHA or VA loan, following are some items which should be addressed before the appraiser goes out to the property. These will generally require work orders or further inspections - and therefore may possibly cause delays in closing - if they are not repaired before the appraisal is done.

Whether you are buying or selling, it seems worthwhile to take a look at this list. A seller may not need to offer any other terms than conventional, but in a 'buyer's market' it can help to offer these financing options. When a buyer looks for an investment as important as a home, an eye towards resale value and options in the future is also a good idea!

Thank you to Nancy Whitaker, Senior Loan Officer of RESPONSE Mortgage Services, in our own Poulsbo John L. Scott office for this information. Nancy may be reached at 360-779-8595.

• Any dry rot or deteriorated wood must be replaced (including evidence of termite or insect infestation).
  
  
• There must be a 6" clearance between wood (decks, home, ect.) and earth.
  
  
• There must be a 18" clearance between soil and floor joists under the entire house.
  
  
• There must be a vapor barrier in place under the house in the crawl space.
  
  
• Foundation must be adequately vented and structurally sound with no erosion, cracks or water damage.
  
  
• Access must be provided to the attic for FHA/VA appraiser. Attic must be adequately ventilated by vent fan or window.
  
  
• The crawl space must be cleared of all debris. Excessive dampness or standing water is not acceptable.
  
  
• Gutters, downspouts and splashblocks must be in place and functional. Drainage problems must be corrected.
  
  
• Exterior and interior paint must be in good condition.
  
  
• All floor coverings must be in good condition; floor supports must be adequate.
  
  
• If it's an older two story home, it may be necessary to put heaters in upstairs rooms.
  
  
• A single oil or gas space heater to heat the entire house is not acceptable.
  
  
• Oil tanks (above/below ground) may need an environmental check.
  
  
• Four feet of waterproof material (tile, formica, ect.) is required around tub exposures.
  
  
• If the bathrooms are carpeted, the buyer must certify that this is acceptable.
  
  
• Roof must be in an acceptable condition; maximum of two layers on composition roofs. All flat roofs will require an inspection.
  
  
• All plumbing must be in working condition. Water pressure must be adequate. No leaking sinks or toilets will be acceptable; toilets must be affixed to the floor.
  
  
• Electrical circuit panels should be circuit breaker boxes, with no more than two circuit breaker boxes per home and no exposed or fraying wiring. Older wiring (knob & tube) or fuse boxes may require an electrical inspection. All electrical systems must work. There can be no missing cover plates.
  
  
• Any broken windows must be replaced.
  
  
• No leased equipment is allowed, with the exception of propane tanks.
  
  
• Hot water tanks require a 3/4" pressure relief valve with a 3/4" discharge line piped outside with 12" clearance to the ground.
  
  
• All assessments must be paid; for example, sewer hook-up assessments. If sewer is available to a home currently served by a septic system, hook-up to sewer may be required.
  
  
• Homes build prior to 1976 will need a lead paint inspection.
  
  
• If a home has a septic system, a sewage report from the county will be required. Septic tank pumping will also be required. Observable evidence of system failure will require repair.
  
  
• If a home has a well, an independent third party bacteriological report will be required.
  
  
• Recorded joint maintenance agreements will be required for maintenance of common road easements.
  
  
• A termite report/pest inspection may be required. Any necessary work orders will have to be completed.
  
  
• All work must be completed before closing. If the work which is being done is a condition of the appraisal, a final mspectiomnay also toe required.
  
  
• Framing, walls and ceiling must be structurally sound ( no significant cracks or visible holes).
  
  
• All utilities must be turned on and functional at the time of appraisal.
  
  
• Garage door opener must have safety auto-open.
  
  
• Staircases with over two risers require a railing. Broken or missing stairs must be replaced.
  
  
• Manufactured homes must have ribbons and tie-downs, and FHA requires a structural engineer's inspection of the foundation.
  

Inforrmation is provided as a guideline only. This list is not intended to be all-encompassing. Requirements are subject to change. Please contact your lender directly if you have questions concerning specific reports.