Prior to an owner can sell a property to buyers who want to use an FHA loan, they will need to be familiar with the FHA standards. FHA will not insure loans for any property. Although their criteria are not as strict as they once were, FHA financing is available to homes that are in reasonably good condition.
Lot
FHA financing is available only if the property is located on a road that allows the owner to freely enter and leave. Access must also be paved with a surface that can work throughout the year. A long, dirt driveway that is only usable in spring will not qualify.
FHA wants the whole lot to be free from radiation, pollution and other hazards. It must also provide sufficient drainage to drain water away from the house.
Property Exterior
For FHA loans, the requirements generally begin with the roof. The house must have a roof that is watertight and has some potential for future life in order to pass the FHA’s requirements. Moreover, any roof with three or more layers must be removed.
If the property is at risk of being painted with lead paint, its exterior must be free from chipped or damaged paint. The foundation must also be free from signs of interior and exterior damage. It must also have exterior walls.
Property Interior
In addition, the property’s interior must be inspected. FHA standards require that all major systems in the house be in good condition.
For fire safety, bedrooms should have exit routes. Attic and basement must be free from water and mold damage. FHA loans are only available to borrowers who can afford them. However, a property does not have to be in perfect order to be offered to an FHA mortgage-using borrower. They just need to live in it.