How well do you know what repairs will be required if you buy a home using FHA financing?
Test your knowledge.
Answer yes or no to the following questions.1. Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and are also known as the three S's. Safety, Security, and Soundness.
2. FHA will reject a property that would be cost prohibitive or impractical to bring up to the minimum property requirements.
3. The following are considered defective conditions that must be remedied before the FHA will lend money on the property (answer yes or no for each)
a. decay
b. termites
c. defective construction
d. evidence of continuing settlement
4. The roof must have 2 or more years of remaining life.
5. A roof can have a maximum of three layers.
6. In Texas a termite inspection is required.
That's it. How do you think you did?
Here's a hint. The biggest obstacles seen in Southeast home sales are termites, wood decay and foundation settling. You can learn more about Appraisal and Property Requirements required by FHA at U.S. Department of Housing and Urban Development.
Want the answers without having to look them up? "Yes" is the answer to each and every one of the questions.
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