[dwilterd]

We are trying to sell our 1900 built house to a couple using an fha loan. We don't have a railing for our basement stairs. The basement is unfinished and not part of the living area. It is an enclosed stairway with a door at the top of the stairs. Do you think we will need to install a railing to pass the appraisal?

Also, there are two parts to the stairs. The first part has three risers from the main part of the house to the landing. Then you turn and go down the rest of the way. Will we also need a railing on that first part?

Thanks for your help!

[Happy Val]

Hand rails are no longer required for FHA loans as they are now considered "minor property conditions":

Examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited to:

· Missing handrails

[Mike Kennedy]

http://www.hud.gov/offices/hsg/sfh/appr/aprval.pdf Top of Page 9.

[Mike Kennedy]

Frequently Ask Questions
Valuation Protocol

Page 9 of 10

These FAQs are issued to clarify or illustrate FHA’s appraisal reporting requirements and applicability on
valuation issues.

Content updated October 19, 2009

3. It was stated that handrails and trip hazards are cosmetic. I don't understand!
Wouldn’t these items be health and safety issues?

The appraiser must always be mindful of health and safety issues and report what is readily
observable. The missing handrails or trip hazards are property conditions that no longer require
automatic repair for existing properties but should be reported by the appraiser. In these
instances, lender discretion and prudent underwriting will determine whether or not a repair is
advisable. For example, a stairwell or staircase comprised of eight (8) or nine (9) risers without

a handrail would probably pose a safety risk.

http://www.hud.gov/offices/hsg/sfh/appr/aprval.pdf

[homesweethome]

It use to be that a railing would be necessary. However under the new guidelines unless there is a real safety hazard you shouldn't need to. By safety hazard I mean I have seen open stairs on either side with a significant drop. That would be flagged. It might be an appraiser's judgment, but the short answer is "no." Now you might get flagged on a building inspection if you are getting one.

[fritzvogel]

FHA has considerably lessened the old VC sheet checklist of conditions needed to secure an FHA backed/insured mortgage. Handrails were always part of the checklist, with 3 or more risers. I'd spend the $ 15. and install them. It still affects the Health, Safety and Marketablity of the property.

[Ted Martin]

Not unless the local build codes require it. FHA pretty much threw the baby out with the bathwater for repairs. The appraiser is responsible for advising the underwriter that the condition exists the determination on whether or not to require the installation of the handrails is up to the underwriter not the appraiser.

Personally, if I was selling the house I would install the handrails because it's the right thing to do and the cost is minimal.

[Webbed Feet]

Originally Posted by Mike Kennedy

Frequently Ask Questions

Valuation Protocol

Page 9 of 10
These FAQs are issued to clarify or illustrate FHA’s appraisal reporting requirements and applicability on
valuation issues.
Content updated October 19, 2009
3. It was stated that handrails and trip hazards are cosmetic. I don't understand!
Wouldn’t these items be health and safety issues?
The appraiser must always be mindful of health and safety issues and report what is readily
observable. The missing handrails or trip hazards are property conditions that no longer require
automatic repair for existing properties but should be reported by the appraiser. In these
instances, lender discretion and prudent underwriting will determine whether or not a repair is
advisable. For example, a stairwell or staircase comprised of eight (8) or nine (9) risers without

a handrail would probably pose a safety risk.

http://www.hud.gov/offices/hsg/sfh/appr/aprval.pdf

Oh my! I haven't laughed that hard so far all year!

[Webbed Feet]

Apparently, as most of the public, you have no idea what is going on in lending versus real estate appraisals. You need to read this post.....

http://appraisersforum.com/showpost....9&postcount=10

and the article it points to.

Here you are probably going to be faced with the absolutely cheapest and fastest appraiser, within 100 miles or so, being sent out to appraise your property for this sale transaction, and your concern is a missing stair railing? As what I indicated in the other thread I directed you to, most likely some AMC selected appraiser that could care absolutely less about quality will be hired because they were the fastest and cheapest the AMC could find. All that appraiser will care about is knocking out an appraisal report as fast as humanly possible without ending up having to revisit the report over a bunch of endless stipulations out of the AMC and lender's underwriter. The appraisal report may be quick and dirty, and probably a piece of crap that may use nothing but short sales and REOs.

Good luck and Best Regards.