May 22, 2015
A reader asks, “I am the seller and was told by the buyers inspector that fha required that Federal Pacific Electrical stab lok was required to be replaced due to the potential that it Might Cause a safety issue. Any electrical can have a potential safety issue. My home was built in 1987.”
While there isn’t a specific question here, the implied question seems to be, “Why was this correction required during the appraisal process?”.
Any correction or repair that comes from the appraisal process could be required because A) the condition fails to meet FHA minimum property requirements or B) the condition fails to live up to state or local building code or C) there is another law or rule which must be satisfied.
FHA loan appraisal guidelines are only part of the issue when it comes to appraisal corrections–the FHA rulebook does not cover each and every type of situation or condition of the home; state and local building codes must be followed even when they exceed FHA minimum standards.
Buyers and sellers alike should know that FHA loan appraisal rules never cancel out or overrule building codes.
There may be some cases where a buyer or seller disagrees with the outcome of the FHA appraisal, but you cannot request a new appraisal simply because you disagree with the valuation or the outcome of the appraisal. It IS possible to request an appraisal review in cases where incomplete work, a lack of competence or other factors are present.
Contact the FHA directly at 1-800 CALL FHA to learn how that process works and what steps may be required.
Do you have questions about FHA home loans? Ask us in the comments section.
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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