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Our appraisal is coming up a week from now from FHA. From going through the house, there two things that our realtor thought would flag:
1. No handrail going to the lower level.. Well after looking in the utility room, I found the rail. They must have removed it to move out. A couple of screws and that baby will be back up.
2. The front step of the house. The blacktop of the driveway goes right up to it and has sunk a little bit. The first step is a little high. Is that something that may be flagged by FHA? I have a concrete guy and am going to get a quote on raising it or filling it or tearing it out or whatever he has to do, but I was curious if that would fail FHA inspection/appraisal.
We are not going to have a problem with the house not appraising, so that is our only concern.
I think those are exactly the kind of things that do get flagged, but as you noted they are easily addressed. No harm in getting 'em done ahead of time...
I am the buyer and it is a short sale so the "seller" doesn't have any money..
I was under the impression we could escrow the funds for repair if it is flagged.. After inspectioin there is another 2 and a half weeks to close so we would have time to get it figured out I imagine. Thanks Chet for the response.
Selling Guide, Part XI, Section 202: Status of Construction; and Section 405.08: Property Condition
The following clarifications apply to both of the above referenced sections of the Selling Guide as they pertain to postponed improvements. Furthermore, Fannie Mae is explicitly stating that completion or repair escrows are permitted under certain circumstances for existing properties.
If the appraiser reports the existence of minor conditions or deferred maintenance items that do not affect the livability, soundness, or structural integrity of the property, the appraiser may complete the appraisal “as is” and these items must be reflected in the appraiser’s opinion of value. The lender is not required to ensure that the borrower has had this work completed prior to delivery of the loan to Fannie Mae.
If there are minor conditions or deferred maintenance items to be remedied or completed after closing, the lender may escrow for these items at their own discretion and still deliver the loan to Fannie Mae prior to the release of the escrow as long as the lender can ensure that these items do not affect the livability, soundness, or structural integrity of the property. Minor conditions and deferred maintenance items include, but are not limited to, worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance are typically due to normal wear and tear from the aging process and the occupancy of the property.
When there are incomplete items or conditions that do affect the livability, soundness, or structural integrity, the property must be appraised subject to completion of the specific alterations or repairs. These items include, a partially completed addition or renovation, or physical deficiencies that could affect the soundness or structural integrity of the improvements including but not limited to cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, or inadequate electrical service or plumbing fixtures. In such cases, the lender must obtain a certificate of completion from the appraiser before it delivers the mortgage to Fannie Mae.
there is no definition as to what is a safe level for stairs. However, the old MPS (minimum property standards) has been discontinued as most areas have the IBC Code in effect which establishes a minimum standard. The IBC Code states:
Quote:
1009.3 Stair Treads and Risers.
Stair riser heights shall be 7 inches maximum and 4 inches minimum. Stair tread depths shall be 11 inches minimum. The riser height shall be measured vertically between the leading edges of adjacent treads. The greatest riser height within any flight of stairs shall not exceed the smallest by more than 0.375 inch. The tread depth shall be measured horizontally between the vertical planes of the foremost projection of adjacent treads and at right angle to the tread's leading edge. The greatest tread depth within any flight of stairs shall not exceed the smallest by more than 0.375 inch
Quote:
1009.3.1 Dimensional Uniformity.
Stair treads and risers shall be of uniform size and shape. The tolerance between the largest and smallest riser or between the largest and smallest tread shall not exceed 0.375 inch (9.5 mm) in any flight of stairs.
Our appraisal is coming up a week from now from FHA. From going through the house, there two things that our realtor thought would flag:
2. The front step of the house. The blacktop of the driveway goes right up to it and has sunk a little bit. The first step is a little high. Is that something that may be flagged by FHA? I have a concrete guy and am going to get a quote on raising it or filling it or tearing it out or whatever he has to do, but I was curious if that would fail FHA inspection/appraisal.
Yes, your front step will be flagged as a tripping hazard (safety). We were dinged (as the buyer) for the exact same reason.
Appraisal was done, no repairs needed at all. Maybe they thought the step was okay? At least we can do it the way we want now, instead of the other way we were going to do it. Sometimes you get a little slack i guess :swearing about the rest of the short sale process under my breath:...
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