Lender typical repairs required for FHA loans

If you are interested in using the FHA 203K loan program to fund repairs on your home or a home that interests you purchase, you should know that there are some repairs that you will be asked to do. The lender and the FHA wants to know that their investment will be protected, and as such you should add these to your repair work to write in order to obtain approval for the loan.

Standards for Energy Efficiency

The Department of Housing and Urban Development (HUD) wants all the houses that were renovated under the FHA loan program to be as efficient as possible. For this reason, there are several repairs that improve energy efficiency in building. Doors and windows should be stripped of the time if the weather stripping is old and worn. The exterior of the building must be inspected for holes or cracks, and these must be sealed or mastic.

If it is opening all the walls outside the house, such as for example to replace the drywall, it is necessary to isolate behind the wall. It is not necessary to remove the walls to the end of isolation, however. You simply must do if the walls or ceilings are open. In addition, the attic and crawl spaces must be adequately ventilated.

If you are replacing all HVAC systems, will need to insulate around the flow and return pipes and ducts in any part of the house are not heated or cooled by the system. Moreover, there is no need to buy a unit that is too large. The unit can not be above 15 percent larger than the needs of the house, unless the manufacturer makes a unit best suited to the one you chose.

Improvement Required for Safety

The FHA does not have safety requirements. Of course, all repairs should keep the house to the coding standards of the city. The safety requirement only that the FHA gives applies to smoke detectors. All sleeping areas must have at least one smoke detector located adjacent to the hall.

Requirements for the first $ 5,000

The first $ 5,000 the amount of the loan must be used for major repairs to the existing structure. Cosmetic repairs may be included in the loan, but can not make the first $ 5000 was given. Repairs that qualify for the first $ 5,000 are as follows:

* Repair structural damage
* Repairing termite damage
* Make the house accessible to disabled
* Installation of new HVAC systems
* Installation of septic or well or sewer connection
* Fixing floor roof, eaves or
* Major changes to the landscape
* Projects important that increase the aesthetics, such as the addition of new coatings or veranda

Once you have $ 5,000 in major repairs to write your job, you can begin even minor cosmetic items such as new paint or trim.

In addition to these requirements, each individual creditor may want to have repairs done to see the house. Remember, the lender wants the home to be sold in case you do not repay what you owe, thus the reason for the necessary repairs. This is not a problem, however, because the money will be made available to the FHA 203K Loan for these items .......