Minimum Property Standards KEEP THESE FHA STANDARDS IN MIND WHEN LOOKING TO BUY OR SELL
MULLINAX TEAM REAL ESTATE • CARTERSVILLE, GA • MULLINAXTEAM.COM
WHY DO FHA STANDARDS EXIST?
When a buyer gets a mortgage, the property serves as collateral. In other words, if the borrower stops making the mortgage payments, the lender will eventually foreclose on the borrower and take possession of the house. The lender will then sell the house to get back as much of the money it lent as possible. Requiring that the property meet minimum standards protects the lender. It means that the property should be easier to sell and command a higher price if the lender has to foreclose. At the same time, a borrower is more likely to stay in a home that meets minimum standards because he or she will not be burdened with expensive home repair bills from the start. Also, borrowers will try harder to make payments during difficult financial times if the home is a pleasant place to live.
The FHA does not require the repair of cosmetic or minor defects, deferred maintenance and normal wear if they do not affect the safety, security or soundness of the home.
MINIMUM PROPERTY STANDARDS-WHAT ARE THEY?
PROPERTIES FHA FINANCED MUST MEET THE FOLLOWING STANDARDS
Safety: The home should protect the health and safety of the occupants. Security: The home should protect the security of the property. Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.
An appraiser will observe the property's condition during the required property appraisal and report the results on the FHA's appraisal form.