13 REASONS WHY 2 NEW REPLACEMENT CRACKED
13 REASONS WHY 2 NEW REPLACEMENT WINDOWS

A missing free-standing refrigerator, washer or dryer arenвЂ™t problems. Remember, an appraiser is looking for вЂњsafetyвЂќ problems! Sometimes itвЂ™s all of the kitchen lights or bedroom center light fixtures. Especially on foreclosure sales, the dining room light fixture is sometimes missing. Missing outlet plates even in a garage or outbuilding typically need to be in place. Electrical wires must be properly terminated, secured and finished in an electrical box and covered with the appropriate plate.

Open/exposed wiring вЂ¦ Not good, not good.

Water in the crawl space is a definite no-no as is significant water standing in the yard. Watch for soft floors around toilets and tubs, leaky faucets, roof leak stains in the ceiling. A quick glance under a sink to see rotting floors and moldy walls will nix a loan every time. This is one of the biggest hot spots for an FHA appraiser and rightly so.

13 REASONS WHY 2 NEW REPLACEMENT CRACKED

For that matter, asbestos potential in a popcorn ceiling thatвЂ™s falling down or in old cracked siding could also be an issue. Not a problem where the paint is in good shape, but where it could possibly be ingested - even on outbuildings. Where the house is older than 1979, that paint could be lead based. In a recent transaction, however, I did have an FHA appraiser insist that a window that had a broken seal (indicated by fogging between the panes) be replaced prior to closing.

13 REASONS WHY 2 NEW REPLACEMENT WINDOWS

ItвЂ™s certainly not necessary that the windows be newer - old, single pane windows can be just fine as long as theyвЂ™re sound and in one piece. Note that some roofing companies will inspect a roof for you and write a letter (for a small fee) stating their opinion of the remain life of a roof. That original 3-tab roof thatвЂ™s now 15 years old or so could be problematic. Most appraisers look for roofs that have an obvious 5 years or more life left in them. In our area, moss is common, but it should be minimal at best and easily removed with a light sweeping or cleaning. Curling and missing shingles, gutters that are missing, lots and lots of moss. Roofs that are at or near the end of their useful life, or in tough shape.

The FHA appraiser that values the home for your bank loan will be watching for these items as well: FHA wants to be sure that the home they insure вЂ¦ the one youвЂ™re buying вЂ¦ has no health or safety issues that could compromise your ability to repay your mortgage.ДЄs you tour a home with your agent anticipating that youвЂ™ll use an FHA loan for purchase, watch for these items. A home in good repair with typical maintenance generally is no problem вЂ¦ itвЂ™s the home thatвЂ™s been neglected that can so often be problematicвЂ“those homes may need a Rehab loanВ FHA 203(k) where the cost of home repair is included in the home loan. However, one thing to remember is that not only do YOU, the buyer, have to qualify for a mortgage loan, the home must also qualify under typical FHA 203(b) loans (the most common type). (Note that while FHA lists credit score qualifications starting at about 580, most lending institutions pad that requirement raising the minimum score to the mid-upper 600вЂ™s.) With FHAвЂ™s awesome interest rates, the low minimum down payment requirement of only 3 1/2% and closing costs running right around 3% of the purchase price, FHA financing makes a home buying possible for many many buyers. Without a doubt, an FHA 203(b) can be a logical choice, especially for folks with credit scores below about 680 or so. In my practice, FHA loans are used for a large chunk of home purchases. The market is HOT, with multiple offers and Sellers are just less willing to pay anything out of pocket except their own expenses. I did want to point out, as I edit this post, that, at least in our busy area, itвЂ™s definitely far less likely that a Seller will assist with a BuyerвЂ™s closing costs.

While FHA loans are still an incredibly good choice for many buyers, there are now some 3% down payment conventional loans that are also extremely popular. This blog entry, originally written in 2011 has been one of the most read posts on my site.

13 reasons why 2 new replacement