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So, my question is pretty simple. If you are buying a home with a detached garage that has a pretty bad roof and it's noted on the appraisal as needing to be repaired...will fha required that the detached garage roof be repaired?
The detached status will not change the requirement for repair. The only other possible approach would have been to remove the garage prior to requesting the appraisal. That possibility has been removed (for this report) if value was given to the garage.
The detached status will not change the requirement for repair. The only other possible approach would have been to remove the garage prior to requesting the appraisal. That possibility has been removed (for this report) if value was given to the garage.
Ok. But can you just ask the appraiser not to add it to the appraisal since it would not change the value of the home? I mean it might but I doubt by much and it wouldn't change the fact that the house will be higher in value than the purchase price. So, is this possible?
So you want the appraiser to put his or her license to work on the line and commit fraud by ignoring a an FHA required repair? You might want to play games but HUD/FHA is not playing games.
Also, the appraiser has to submit photos of all structures on the property. The bad roof will be visible. The underwriter will note it also. Current appraisal forms have the multiple listing numbers for both the subject & all comparables listed on the form. Underwriters are comparing the appraisal report to those multiple listing sheets. Most are also using the assessor's property card to compare appraisal reports to what the town says is there. The MLS sheet and the property card will have the garage listed as being part of the sale. Everyone involved in the processing of the loan will know it's there.
I have a better idea. How about the listing real estate agent anticipate all the different types of loans that could be used when the property is sold. Potential repairs could be discussed with the seller ahead of time. Agents could discuss with buyers the basics of different types of loans & the loan requirements before showing homes to a buyer.
Then no one is shocked by the fact that the garage needs a roof. It's kind of hard to hide. The roof simply becomes an item of negotiation when writing a contract.
When you have good agents involved in a sale, the OP's problem doesn't arise. What the OP has is a bunch of people hiding their heads in the sand and hoping beyond hope that the roof problem somehow magically disappears. " Maybe the appraiser won't see it", " maybe the appraiser won't put it on the report" and so on. Then you wind up with the OP's problem. Weeks into the sale process, the roof now become an item of contention. This is all avoidable.
And to answer the OP's question. Yes, the roof has to be repaired if it is listed as a repair requirement on the appraisal report. .
So you want the appraiser to put his or her license to work on the line and commit fraud by ignoring a an FHA required repair? You might want to play games but HUD/FHA is not playing games.
Also, the appraiser has to submit photos of all structures on the property. The bad roof will be visible. The underwriter will note it also. Current appraisal forms have the multiple listing numbers for both the subject & all comparables listed on the form. Underwriters are comparing the appraisal report to those multiple listing sheets. Most are also using the assessor's property card to compare appraisal reports to what the town says is there. The MLS sheet and the property card will have the garage listed as being part of the sale. Everyone involved in the processing of the loan will know it's there.
I have a better idea. How about the listing real estate agent anticipate all the different types of loans that could be used when the property is sold. Potential repairs could be discussed with the seller ahead of time. Agents could discuss with buyers the basics of different types of loans & the loan requirements before showing homes to a buyer.
Then no one is shocked by the fact that the garage needs a roof. It's kind of hard to hide. The roof simply becomes an item of negotiation when writing a contract.
When you have good agents involved in a sale, the OP's problem doesn't arise. What the OP has is a bunch of people hiding their heads in the sand and hoping beyond hope that the roof problem somehow magically disappears. " Maybe the appraiser won't see it", " maybe the appraiser won't put it on the report" and so on. Then you wind up with the OP's problem. Weeks into the sale process, the roof now become an item of contention. This is all avoidable.
And to answer the OP's question. Yes, the roof has to be repaired if it is listed as a repair requirement on the appraisal report. .
I'm sorry if I implied committing fraud as that was not my intention. The thing is that the garage in question is one that will be teared down. Also, I didn't know if you could just exclude the garage if it could be consider of no value to the home. As far as I have read about fha gudelines it appears they are more concern with safety and issues that might be a hazard so that is why I was asking about this. It seems a little sketchy as far as what fha decideds to waive and what it does not. It seems to me like their guidelines are no longer as strict as they used to be a couple of years ago. Thanks for all the help. I really appreciate it.
FHA requirements are not as bad as they once were, but roofs needing repair/replacement are still one of them.
Safe,sound, secure and sanitary are their basic concerns. A roof needing repair or replacement falls under both safe and sound categories.
It's too bad this was not discussed as part of contract negotiations. Then you & the seller could have
decided whether the garage should be taken down before closing or repaired and who would pay for it.
Right now you have a garage showing up in the appraisal report that has already been submitted to the lender.
What you could do is to look at the appraisal report and see how much value has been given to the garage. Would it impact the value of the report if the garage was removed ? In other words, on the market data grid page, if the garage is worth let's say $ 10,000 according to the appraisal, then removing the garage would lower the appraised value by $ 10,000. Would lowering the appraised value by $ 10,000 affect the final contract price for the house ?
If it doesn't hurt that bottom line, then possibly you could remove the garage, prior to closing, not after. The appraiser would still have to go out and reinspect, take photos and then amend the appraisal report. This could be an acceptable variation for the repair. In other words, the faulty structure has been addressed.
What the appraiser can't do is to ignore the garage. If removing the garage prior to closing is a possible outcome for you, then have your lender discuss the tearing down of the garage building with the appraiser first before you do anything.
FHA requirements are not as bad as they once were, but roofs needing repair/replacement are still one of them.
Safe,sound, secure and sanitary are their basic concerns. A roof needing repair or replacement falls under both safe and sound categories.
It's too bad this was not discussed as part of contract negotiations. Then you & the seller could have
decided whether the garage should be taken down before closing or repaired and who would pay for it.
Right now you have a garage showing up in the appraisal report that has already been submitted to the lender.
What you could do is to look at the appraisal report and see how much value has been given to the garage. Would it impact the value of the report if the garage was removed ? In other words, on the market data grid page, if the garage is worth let's say $ 10,000 according to the appraisal, then removing the garage would lower the appraised value by $ 10,000. Would lowering the appraised value by $ 10,000 affect the final contract price for the house ?
If it doesn't hurt that bottom line, then possibly you could remove the garage, prior to closing, not after. The appraiser would still have to go out and reinspect, take photos and then amend the appraisal report. This could be an acceptable variation for the repair. In other words, the faulty structure has been addressed.
What the appraiser can't do is to ignore the garage. If removing the garage prior to closing is a possible outcome for you, then have your lender discuss the tearing down of the garage building with the appraiser first before you do anything.
The value of the home won't be an issue with or without the garage. It's really more a timing thing. So, yes, perhaps, getting rid of it would be the best option. Is it possible to just get rid of the roof and doors and just leave the three concrete walls standing or would that not be enough. I'm trying to firgure out what would be the fastest and easiest way out of this situation.
...What you could do is to look at the appraisal report and see how much value has been given to the garage. Would it impact the value of the report if the garage was removed ? In other words, on the market data grid page, if the garage is worth let's say $ 10,000 according to the appraisal, then removing the garage would lower the appraised value by $ 10,000. Would lowering the appraised value by $ 10,000 affect the final contract price for the house ?.
I was thinking the same thing ..... "Cost To Cure" is the term used. If you were doing a conventional loan, depending on the lender you might be able to have it over looked providing there is enough equity.
On FHA loans it's a no brainer with "a pretty bad roof", repairs are to preserve the continued marketability of the property and to protect the health and safety of the occupants.
Your options are:
Apply for a conventional loan - required good credit and bigger down payment. No M/I, better interest rates)
Find a private lender/investor - possible higher interest rates, with less than favorable terms.
Fix the roof - which is proably cheaper than tearing it down
Years ago as a loan officer, originated several purchases / refinances involving FVA loans with detached gargares (barns) that had damage. The roof is going to need to be repaired as a condition to close with your want an FHA loan.
I was thinking the same thing ..... "Cost To Cure" is the term used. If you were doing a conventional loan, depending on the lender you might be able to have it over looked providing there is enough equity.
On FHA loans it's a no brainer with "a pretty bad roof", repairs are to preserve the continued marketability of the property and to protect the health and safety of the occupants.
Your options are:
Apply for a conventional loan - required good credit and bigger down payment. No M/I, better interest rates)
Find a private lender/investor - possible higher interest rates, with less than favorable terms.
Fix the roof - which is proably cheaper than tearing it down
Years ago as a loan officer, originated several purchases / refinances involving FVA loans with detached gargares (barns) that had damage. The roof is going to need to be repaired as a condition to close with your want an FHA loan.
..
Well, my other issue is that the UW never even mentioned anything to me. According to my processor she had signed off on it. Why would she do that if she knew FHA not would accept it? Shouldn't she be aware of that? It just seems to me like that's something a competent UW should see right away so what gives?
Actually you might be in the clear. The underwriter is supposed to write the loan based on FHA guidelines. That would include following whatever repair requirements the FHA appraiser made.
If the underwriter signed off on the appraisal and ignored or disregarded the repair requirements, then it is basically his or her problem. If HUD/FHA does a field review and notices the garage is not repaired, it will come back to haunt the underwriter, but not you.
Do you have a written loan commitment yet? Are there any repair contingencies in it ? Were you able to read the appraisal report and determine if the appraiser actually made the garage a repair requirement or just noted the roof in the appraisal report. Much will depend on whether the appraiser did the report
" as is" , meaning no repairs or " subject to" , meaning repairs to be completed. .
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