FHA Repair Requirements

Sellers used to be loath to approve a sale to an FHA buyer because FHA required so many expensive repairs to property before approving the loan, and it was the sellers who had to pay for the repairs. But FHA softened their rules in 2006 and now dealing with them is less painful. They concentrate on the three Ss: Safety, Security and Soundness. Basically, it has to be a safe home to live in and get out of.

The New Guidelines

While there are no hard and fast rules about which items will be required, here are some ideas:

• Occupants can’t safely get from the bedrooms to the outside of the house.
• Peeling paint in a house built before 1978.
• Roofs that may have less than two years of life left, or that are leaking.
• Excessive settling and/or cracks in the foundation.
• Leaky pipes or water connections.
• Wood rot
• Exposed wires, open electrical boxes.

Repairs

Either the buyer or the seller can repair these items. However, in most cases, these will need to be done before closing. If the repairs have to be put off until a later date (such as something outside during the winter), funds will be escrowed. If a repair is simple enough that a homeowner can do it, HUD considers it a minor repair. Other repairs will need qualified workers and completed HUD forms to verify the work has been done.

Find Out More

FHA has some good information here.
HUD has a page you can find here that talks about this.
Rural Development has a PDF here that lists items.