Scrambling For The Loan

March 5, 2020

 

 

The Loan Requires It…

If you’re considering the idea of selling your home, there is more to think about than finding the right realtor (yes that is super important) and listing your house for sale. There may be work that needs to be done on your house in order to make a successful sale. FHA, VA, and RD (USDA Rural Development) loans all have strict requirements on what a home needs in order to pass the appraisal process for a specific loan program. It’s a good idea to get a jump start on the tasks ahead so you’re not scrambling when you do find a buyer and your house goes under contract.

 

FHA Property Requirements (According to the U.S. Department of Housing and Urban Development). Listed are things that will need to be repaired.

  1. Missing handrails.

  2. Cracked or damaged exit door that are otherwise operable.

  3. Cracked window glass.

  4. Defective paint surfaces in homes constructed before 1978 (lead-based paint hazard).

  5. Minor plumbing leaks.

  6. Defective floor finishes or coverings (badly soiled carpets, worn through flooring.

  7. Evidence of previous (non-active) wood-destroying insect/organism damage where there is no evidence of unrepaired structural damage.

  8. Rotten or worn out counter tops

  9. Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed before 1978.

  10. Poor workmanship

  11. Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting).

  12. Crawl spaces with debris and trash

  13. Lack of an all-weather driveway surface.

VA Property Requirements (Ensure the property is a safe and sound investment for the homebuyer).

 

  1. Working electric, heating and cooling systems.

  2. Adequate roofing that will last the foreseeable future.

  3. Sufficient in size for basic living necessities.

  4. Clean, continuous water supply with sanitary facilities.

  5. Free of lead-based paint.

  6. Free of wood destroying insects, fungus and dry rot.

  7. Safe and sanitary sewage disposal.

  8. Accessible from an all-weather public or private street.

  9. Attics and crawl spaces must be accessible and properly vented.

RD (USDA Rural Development) Property Requirements).

 

  1. There must be street access to the home year-round. There must also not be any hazards affecting a person’s ability to get up to the home on the sidewalk or driveway.

  2. There cannot be any cracks in the foundation. There also cannot be any moisture issues with the foundation.

  3. All walls both inside and outside the home must be in good condition. There should not be evidence of rotting, mold, or other structural issues.

  4. All exterior doors must have properly working locks.

  5. All interior doors must be properly in place and be working.

  6. All windows must be in good condition and be working. There should not be cracks, leaks, or mold on the windows.

  7. All flooring must be in decent condition without any visible hazards or issues.

  8. All garages, porches, and decks must be in good condition without visible hazards.

  9. The roof must have a minimum of five years of life left and not have any visible leaks, holes, or missing shingles.

  10. All stairs must be in good working condition with no hazards. There must be a handrail and it must be properly affixed and usable.

  11. All electric and plumbing systems must be in good working condition with no visible issues.

  12. The sump pump must be in good working condition.

  13. There must not be evidence of any termite or other post damage inside or outside the home.

Many home buyers will purchase their homes through these loan programs, because interest rates are lower or there is a lower down payment. RD is appealing to buyers who don’t have money to put down on a home. There is no down payment required for RD loans. If you have questions about any of these conditions on these lists call me. I’d be happy to do a walk through of your home, to let you know what things need to be done to pass these requirements.

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