Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
I have a 51 year old home that looks like I have a buyer for. FHA financing. It's in good condition, but with it's age it has some issues/aging. Older electric breaker box and wiring, for example. And a roof with about 5 more years or so. What will the inspector be looking for?
I went through an FHA appraisal earlier in the year on an older home (37 years), actually 2 FHA appraisals were required since I only owned it for 60 days on a short sale/rehab flip. I was really worried they were going to nitpick everything in the house, but they were in and out with only a cursory look. If the house is in decent shape, even though it is dated they probably won't be any harder than a conventional appraisal. There is always the exception, but I was pleasantly surprised. As the buyer's lender told me, they get a lot of not so nice homes through FHA in our area.
Just went through a FHA in AZ.Much easier then a 50 pg. conventional appraisal.As long as things are what they should be ,you should be fine,but what really caught my attention was what Larry said about the "90 day Rule" being only 60 days. Is that a typo or does it have to due with 2 appraisals???????I too fix and flip in Az. but usually only @ the "trustee sales".I anxiously wait for any re-ply.
I do FHA Appraisals and have been for the past 4 years. The inspection requirements are basically outlined on the sheet mentioned earlier. Not all appraisers know or follow these guidelines, however, one complaint on a missing item to FHA by the buyer will change that for the appraiser.
Mainly, you need to look at the house and see if it is basically liveable without alot of work to make it habitable. For example, does the stove work well, is the plumbing fully operational, do all sinks, toilets, and laundry drain properly. Is the electrical in safe working order. Is there leftover items fromthe previous owner, Is there anything that could endanger the occupants especially children (lead paint on older buildings).
I inspected a house yesterday that the new owner thought could make hime 80K but when I went through for the FHA buyer, it won't work, illegal additions without permits, drain problems in kitchen sink, faucet problems in bath (not turn off properly), stove not working, heating system not functioning.
Guess what, this is not going to pass. That sheet mentioned above is a good overview and many underwriters are taking it to specification beyond belief so don't be surprised if a deal gets held up because the underwriter saw something in a picture that the appraiser did not mention in the report.
Inspecting the physical condition of a house is an important part of the home-buying process. One or more professional inspectors should look for defects or malfunctions in the building’s structure, such as the roof, plumbing, or foundation, and detect pest infestations or dry rot and similar damage. Before you finalize your house purchase, be sure the house is in good condition. The value of a building depends more on other factors, such as access to roads, proximity of shopping centres, medical facilities, schools, water supply, electricity, etc. Identifying the right market & finding the best property holds the key to success.
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Inspecting the physical condition of a house is an important part of the home-buying process. One or more professional inspectors should look for defects or malfunctions in the building’s structure, such as the roof, plumbing, or foundation, and detect pest infestations or dry rot and similar damage. Before you finalize your house purchase, be sure the house is in good condition. The value of a building depends more on other factors, such as access to roads, proximity of shopping centres, medical facilities, schools, water supply, electricity, etc. Identifying the right market & finding the best property holds the key to success. Here’s one such tool which will help you to determine if a property is a good investment. It’s a smart real estate rating engine through which you can research, compare & find best places to invest, It also identifies properties with the most value, establishes the right price range to pay, computes rent income to expect & projects long-term cash flow and appreciation.Look into http://www.smartzip.com/info/score
FPA inspection is now a bit strengthen as they imposed a few new laws and methods.Any ways its far hassle-free then others.I under go it for 2 years and have no problem.It is an essential to purchase a old house.