FHA Loan Articles
News, updates, and explanations to keep you informed.
FHA Appraisals and Roof Requirements
One frequently asked question about the FHA loan process is related to FHA appraisals and the minimum requirements for the roof of the home. It's the appraiser's job to look over the home, make sure it meets FHA standards, and assign it a fair market value. The appraiser notes any visible defects, conditions or issues from the basement to the roof, and recommends fixes or changes.
What is the appraiser looking for when it comes to the roof? For starters, the roof must do what it's designed to do--FHA and HUD regulations say it must not leak or allow moisture to enter the home. in order to pass the appraisal process, the roof must also "provide reasonable future utility, durability and economy of maintenance" according to the FHA official site.
But that's not all--the FHA also requires a minimum amount of durability. "The roof should have a remaining physical life of at least two years. If the roof has less than two years remaining life, then the appraiser must call for re-roofing or repair. The appraiser must clearly state whether the subject is to be repaired or re-roofed."
Any leaks or moisture due to a problem with the roof are noted will be noted on the appraisal report. Any noticeable holes, water damage or other problems are also noted. This discovery process is similar to the appraiser's job in the basement--the appraiser inspects the condition of the area and makes the appropriate observations.
That said, it's important to note that FHA appraisers are not necessarily trained experts on roofing issues, nor is the appraiser required to step onto the roof to inspect it further. The borrower must take it upon themselves to have a home inspector look over the roof and other critical areas of the property-there may be issues not immediately noticeable that an inspection would catch that do not appear on the FHA appraisal report.
FHA appraisers are not required to be specialists in any one particular area-an appraisal is a multi-faceted, more general process than a home inspection. The FHA fee appraiser is not required to enter crawlspaces, walk on roofs or perform other duties for which they have no specialized equipment or safety gear for-that's something to discuss with a home inspector.
Borrowers concerned about the state of the roof or wondering about the remaining years left on it should hire an inspector and ask specifically about those issues prior to the inspection. Borrowers should never assume the property is defect-free just because it passed the FHA appraisal.
FHA NEWS and RELATED ARTICLES
When applying for an FHA home loan, some lenders may ask for tax paperwork as part of the application process. Some borrowers may wonder if this is legal, or an acceptable practice for home loans in general.
There are many questions about the official FHA loan rules for occupancy for single-family home loans. According to FHA rules, a borrower must occupy the home purchased with a single-family FHA loan as a personal residence as a condition of loan approval.
After the housing market crisis of the previous decade, many mortgage borrowers found themselves having trouble making their monthly payments. In some cases, borrowers just walked away from the mortgage completely and allowed the home to be foreclosed upo
The FHA has announced it would accept electronic signatures (also known as e-signatures) on several FHA home loan documents. The new policies are found in detail described in FHA Mortgagee Letter 14-03.
Some of your FHA loan closing costs may be financed, and some may--after being negotiated between buyer and seller--be paid by the seller within the boundaries of the FHA loan programís rules. The borrower can also pay some closing costs out of pocket.