Delaware Mortgage Loans

Even though FHA made major change to their appraisal requirements, some Realtors, Sellers, and Buyers are still concerned about Loans that require an FHA Appraisal.  Most of these people still have concerns because they are not aware of the changes that occurred in January of this year, or they have not seen these change first hand yet.

 Here are some of the major changes that occurred in January:

 Examples of MINOR property conditions that no longer require AUTOMATIC repair for existing properties are:

• Examples of Missing handrails;
  

• Cracked or damaged exit doors;
  

• Cracked window glass;
  

• Minor plumbing leaks (such as leaky faucets);
  

• Defective floor finish or covering (badly soiled carpeting);
  

• Rotten or worn out counter tops;
  

• Crawl Space with debris or trash;
  

• Defective paint surfaces in homes constructed Post 1978
  

Examples of tests that may no longer be REQUIRED:

• Wood Destroying Infestation Report-required if there is evidence of READILY OBSERVABLE ACTIVE infestation;
  

• Well (Individual Water Test)-Required if there is knowledge that well water may be near sources of contamination;
  

• Septic Test-required if evidence of system failure.
  

FHA is still going to require:
- Handrails on three or more steps if it is a safety problem
- Missing Steps
- Electrical boxes that are not enclosed properly. 
- Replace Roof that has less than two years left on it.
- Major chipping paint, especially if it is lead base (house built before 1978)
- Active bug infestation.

If you have questions about FHA loans or need help qualifying yourself or a client for an FHA loan, please feel free to call me or e-mail me at DelawareMortgages@yahoo.com

John R. Thomas – Certified Mortgage Planner