Since its inception The Department of Housing and Urban Development (HUD) has established minimum property standards. While these standards have varied over time the recent changes have been some of the most dramatic in decades. By eliminating many of the "nuisance" repairs and mandatory inspections HUD hopes to make it easier to buy or sell a home with FHA financing.

Recent changes are highlighted in bold on this checklist.

POOR CONDITION -

A lack of maintenance that gives a "run down" look to a property is acceptable. Missing or damaged flooring or carpet, rotted or worn out countertops, poor workmanship, damaged plaster or drywall, bathroom tile, missing or damaged interior doors, debris, trash, or other cosmetic items that do not otherwise jeopardize the safety or structural integrity of the property are acceptable and will not require repair.  However, there is a limit to this deferred maintenance.  Extensive damage and/or unsafe items will require repair 

STRUCTURAL DEFECTS -

Large settlement cracks, sagging floors or roofs, and significant deteriorated wood are conditions that require professional repair. Grading must be adequate to drain away from house.

TERMITES -

HUD will no longer automatically require a termite inspection. Minor (nonstructural) termite damage will not require repair. Wood/soil contact that is not due to a structural problem will no longer require repair. Visible evidence of active or past infestation, or evidence of dryrot will require termite report with clearance of Section I items.

LEAD PAINT -

For homes built before 1978, any peeling, chipping, or chalking paint on the house, detached garage, shed, fence, or anywhere on the property must be scraped, primed, and painted. Use tarps to collect paint chips to avoid contaminating the soil. If the home is built after 1978 HUD will no longer require painting of defective paint surfaces, in most cases. However, extensive cracking and paint peeling will always require repair.  

HEATING -

The property must have a permanent heat source. The heating and air conditioning system (if present) must be operating properly. Space heating systems are acceptable if installed in accordance with local building codes. Combustible (oil/gas) heat requires exhaust ventilation.  These systems must be in good working condition with no safety concerns to the appraiser.   

ROOFS -

Leaking and worn out roofs require repair or replacement. While a remaining life of at least two years is no longer specified a roof with a life of less then two years should be considered "worn out". HUD will no longer require automatic inspection of a flat roof system. If the roofing is questionable, whether 2 two years are left on the life of the roof, it will need replacing.  The actual appraiser will make this call.  Having a roofer write a letter that the roof has two years remaining life will not necessarily stop an appraiser from requiring a new roof.  

WINDOWS/DOORS -

HUD will no longer require broken (cracked) glass to be repaired. Exterior doors that are in poor condition but are otherwise functional are acceptable. Windows that stick, are loose, or are otherwise in poor but serviceable condition should be acceptable with the following exception: Inadequate access/egress from bedrooms to the exterior of the home is unacceptable. At least one window in each bedroom must open and close freely in order to allow escape in case of fire. Burglar bars on bedroom windows must have a release mechanism (at least one per bedroom).

ELECTRIC/UTILITIES/MECHANICAL SYSTEMS -

Fuses are acceptable. 60amp electric service may be acceptable (a small house with oil or gas for heating, cooking, and hot water). Loose wiring, open splices, and other hazardous conditions will require repair. An exception is low voltage (telephone or cable TV) wiring that would not present a hazard. All utilities should be on in vacant homes in order to avoid reinspection. All mechanical systems must be operating.

CRAWL SPACE & ATTIC -

Access to both the attic and the crawl space is required. Both must have adequate ventilation. Crawl spaces must have sufficient clearance for inspection and maintenance. The 18 inch rule is no longer enforced.  However, all spaces must have adequate clearance for repair.  All significant settlement will require an inspection.

PLUMBING -

Minor plumbing leaks and defects are acceptable. Major plumbing problems will require inspection and repair. Water heaters must have a pressure relief valve. 

SAFETY CONCERNS -

Smoke detectors are not required but if they are present they must work properly. HUD no longer requires repair of the safety device that automatically stops an obstructed electric garage door opener. Trip hazards such as uneven walkways or sidewalks will not require repair. Missing handrails on stairways are acceptable.

HUD DOES NOT REQUIRE

HUD does not require the following:

• Appliances
• Screens
• Driveways
• Lawn sprinkler systems
• Pool repairs (unless they present a safety concern)

Of course all of these items are left to the interpretation of your appraiser.  However, if a FHA or HUD appraiser requires what you think is an unnecessary repair or replacement, you can visit www.hud.org to pull this information from the appraisal requirements of the site. 

If you need further assistance please visit my website at www.rscottpierce.com or call/text me at 601-466-4224. 

 

   

 

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