July 23, 2013
A reader asks, “We are looking into an FHA loan but our I know our house is not totally in code with the FHA/HUD guidelines. Such as railings needed if steps are 2 feet or higher. Is there somewhere that I can find these guidelines so that we can start?”
FHA minimum property requirements are found in HUD 4910.01, Minimum Standards For Housing. But there is a very important factor to be considered–FHA loan rules are not the only standards a home must live up to.
Anyone who wants to spend time and money fixing up a home to make sure it is in compliance with FHA loan minimum standards must also make sure the home is within state, local or otherwise applicable building codes. FHA appraisals on homes that do not meet code may require repairs or other changes to bring that property up to code as a condition of loan approval.
In other words, a property could meet ALL FHA minimum property standards, but if it does not meet state or local building code it cannot be approved for an FHA mortgage until it is brought into compliance or there is an applicable waiver that may be applied for (such waivers may or may not exist depending on the code violation and the nature of the laws involved).
It’s not safe to assume that a home which meets FHA minimum standards is “safe” from state or local code violations–before investing money to alter a home to live up to FHA rules, it’s important to know what other state or local building codes may be applicable in a given situation to avoid wasting time and money.
FHA minimum property standards are just that–minimums. They enhance, but do not override, state and local building code. Borrowers and sellers should be aware of this fact when coming to the bargaining table, pre-appraisal.
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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