January 2, 2014
A reader asks, “What are the property condition requirements for an FHA loan? For example, what if the home is older and has a main panel of the fuse type instead of the newer circuit breaker type – are those okay if they as long as they pass inspection? Does the roof need to be certified if it is not new? Is there a publication I can reference for this type of information?”
FHA loan minimum property requirements are just that–minimums. State or local building codes also apply, so it’s important to check with the local authority for specifics on things like circuit panels, carpet and roof requirements.
The FHA has general minimum property requirements listed in Chapter 12 of HUD 4155.1, but for detailed information, the local authority must be consulted. Chapter 12 is meant as a set of guidelines for FHA appraisers. Here’s an example of such guidelines. The reader question includes a question about the roof–here’s what Chapter 12 has to say, in its entirety, about the roof in a section titled Basic Minimum Property Requirements:
“The roof covering must
• prevent entrance of moisture, and
• provide reasonable future utility, durability, and economy of maintenance. When a defective roof with three or more layers of shingles must be replaced, all old shingles must first be removed.”
As you can see, this is the most basic, general instruction possible–the local building code would apply, as would state code. The FHA doesn’t keep copies of all state/local code on file, so when there are questions like these, it’s up to the borrower (or other interested party) to get the information from the local agency or an expert such as an FHA appraiser or home inspector.
That said, HUD 41551. Chapter 12 does include a number of specifics that a borrower should know about–for example, under the requirements for utilities, you’ll find the following:
“Utility services must be independent for each living unit, except
- living units under a single mortgage or ownership may share water, sewer, gas, or electricity as long as there are separate service shut-offs for each unit, and
- living units under separate ownership may share connections from the main to the building line when those connections are protected by− easement or covenant, and
− a maintenance agreement acceptable to VA.”
Such minimum requirements may not be an issue for all FHA loan applicants, but in cases where these standards apply, knowing them in advance can make a lot of difference when hunting for a suitable home.
Do you have questions about FHA home loans? Ask us in the comments section. You can apply or get pre-approved for an FHA loan at FHA.com, a private company and not a government website.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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