FHA appraisal - house doesn't meet minimum requirements

8 Replies

Looking for some guidance -- I'm selling a house that I rehabbed. It has a detached garage and workshop that has some peeling paint. The first FHA inspector/appraiser did not make an issue of it. The second appraiser is now saying that the paint is an issue and needs to be fixed before the buyer can move forward with the loan. They house is build pre-1978. Any thoughts on how to handle this? Is the only solution to scrape and repaint?

Scrape and repaint. Your agent should have made you aware of FHA guidelines before accepting an FHA offer.

Originally posted by @Gustavo Panosso :

Looking for some guidance -- I'm selling a house that I rehabbed. It has a detached garage and workshop that has some peeling paint. The first FHA inspector/appraiser did not make an issue of it. The second appraiser is now saying that the paint is an issue and needs to be fixed before the buyer can move forward with the loan. They house is build pre-1978. Any thoughts on how to handle this? Is the only solution to scrape and repaint?

I’m curious how two inspectors who are supposed to know the rules, regs, guidelines (what ever they go by) , came up with differing inspection results. Whether it needs to be addressed or not I’m just wondering when they send the 3rd person will they find something else.

@Gustavo Panosso

Why was there 2 inspectors? Was one a buyers inspector and the others FHA or do you mean you purchased FHA and when you bought they did not care?

Originally posted by @Daria B. :
Originally posted by @Gustavo Panosso:

Looking for some guidance -- I'm selling a house that I rehabbed. It has a detached garage and workshop that has some peeling paint. The first FHA inspector/appraiser did not make an issue of it. The second appraiser is now saying that the paint is an issue and needs to be fixed before the buyer can move forward with the loan. They house is build pre-1978. Any thoughts on how to handle this? Is the only solution to scrape and repaint?

I’m curious how two inspectors who are supposed to know the rules, regs, guidelines (what ever they go by) , came up with differing inspection results. Whether it needs to be addressed or not I’m just wondering when they send the 3rd person will they find something else.

 Thank you for the reply. I had the same question and contacted the lender. He said that the second inspector will be going out to verify that the repairs are done correctly. He also mentioned that they will be having a conversation with the first appraiser to see why he missed the items that the second appraiser found.

Originally posted by @Mike Cumbie :

@Gustavo Panosso

Why was there 2 inspectors? Was one a buyers inspector and the others FHA or do you mean you purchased FHA and when you bought they did not care?

Hi Mike, thank you for the reply. I purchased this property cash. FHA requires a second appraisal for houses that are being sold between 91-180 days from the time the seller acquired the property and at 100% or more of the original purchase price.

Originally posted by @Gustavo Panosso :
Originally posted by @Daria B.:
Originally posted by @Gustavo Panosso:

Looking for some guidance -- I'm selling a house that I rehabbed. It has a detached garage and workshop that has some peeling paint. The first FHA inspector/appraiser did not make an issue of it. The second appraiser is now saying that the paint is an issue and needs to be fixed before the buyer can move forward with the loan. They house is build pre-1978. Any thoughts on how to handle this? Is the only solution to scrape and repaint?

I’m curious how two inspectors who are supposed to know the rules, regs, guidelines (what ever they go by) , came up with differing inspection results. Whether it needs to be addressed or not I’m just wondering when they send the 3rd person will they find something else.

 Thank you for the reply. I had the same question and contacted the lender. He said that the second inspector will be going out to verify that the repairs are done correctly. He also mentioned that they will be having a conversation with the first appraiser to see why he missed the items that the second appraiser found.

 Good that there may be some consensus on the matter.

Just a quick follow up on this (maybe someone will benefit from it in the future). I spoke with the second appraiser. He said I have 3 options:

1) Remove and replace the walls that have the peeling paint.

2) Cover the existing walls with drywall (or some other building material) to enclose the peeling paint.

3) Scrape and paint.

My contractor is lead based paint certified, so we are going with scrape and paint.

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