FHA Mortgage Update

The following information was provided this afternoon by Cherie Kesti, Windermere Mortgage:

On all FHA loans, repairs for minor cosmetic deficiencies are no longer required, as long as the safety of the occupants or the security and soundness of the property is not affected. The following are some examples of those items not requiring repair:

• missing handrails
• cracked or damaged exit doors that are otherwise operable
• cracked window glass
• defective paint surfaces in homes built after 1978
• minor plumbing leaks (such as leaky faucets)
• defective floor finish or coverings (such as badly soiled carpeting or worn through finish on wood floors)
• evidence of previous non-active pest damage where there is no evidence of unrepaired structural damage
• rotten or worn out counter tops
• damaged plaster, sheetrock or other wall and ceiling materials in homes built after 1978
• poor workmanship
• trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)
• crawl space with debris and trash
• lack of an all weather driveway surface

On all FHA loans when a roof certification is required, we will accept a minimum of 2 years for the remaining life of the roof. On FHA loans where a new roof is required and either the seller or buyer installs the roof, the following is required:

• specific hold harmless on the roof
• receipt for payment of materials
• FHA inspection of roof

On FHA loans where a new roof is required and the roof is installed by a licensed roofer, only a roof certification and a specific hold harmless on the roof is required. An FHA inspection or lender's certification is not required.

On all FHA loans with a flat and/or unobservable roof, an inspection is no longer required unless there is evidence of a problem.

On FHA loans, the borrower(s) are not required to hook up to public water or sewer IF the connection cost exceeds 3% of the value. The bid for hookup must come from a licensed well driller or septic installer and include the county hookup charges. You must also provide proof with a health inspection or licensed sewer inspection that the system is functioning properly.