As your New Orleans real estate agents, when we begin the process of listing your home for sale, there are many factors we look at. One of the questions that often comes up is, “Will my house pass an FHA inspection?” So, let’s talk about this and what you can anticipate.
What is an FHA inspection?
Well… we call it an inspection. But truly, this “inspection” is an FHA-approved appraiser noting safety and health concerns. These deficiencies will require repair BEFORE the sale of the house. The appraiser will have to return to the property to check these items, take photos, and document that the repairs are completed.
If you do not complete the repairs, this buyer cannot purchase your home. Any other potential FHA buyer making an offer will also have to use that same appraisal for the next six months. This means you cannot allow anyone using an FHA loan to purchase your home. Noteworthy, VA loans usually have the same or stricter requirements.
So, if you have numerous items flagged by an appraiser and do not want to correct the issues, you must wait for someone to offer to pay with cash or use a conventional loan.
What types of issues are flagged during FHA appraisals?
This is not a complete list of items that can signal a concern for an appraiser, but it’s a start!
- Evidence of water damage
- Significant cracks in the walls
- Visible holes
- Cracked window panes
- The heater does not work/function properly
- Cracks in the slab
- Missing shingles on the roof
- AC does not work/function properly
- No hot water
- Electrical switches don’t work
- Missing handrails on stairs/steps
- Leaking toilets
- Swimming pool is in bad repair/not operational
- Rotted flooring
- Chipped/peeling paint on interior and exterior if built before 1978
- Chipped/peeling paint on the exterior for houses built after 1978
Why do I want my house to pass an FHA inspection?
You could severely limit your buyer pool if you cannot take an offer with FHA financing. Many first-time home buyers use this type of loan when purchasing a house.
If you’re okay with listing with the knowledge that it could limit the number of people who can make offers, go for it! Not all sellers correct these items and decide it’s not worth it to them.
Get yourself a great New Orleans real estate agent who can help you navigate the road of FHA red flags!
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