FHA and structural defects

[cmitchell]

In my area I appraise a 100 yrs plus homes. I see a lot of temporary columns used in the basement for additional support (teleascoping), small trees (some seem less dense due to age) and random 2x lunber. Often the lumber seems to me to be undersized. I'm considering these situations a defect and call for a structural engineer inspection. It seems like a lot of my competitors are not. These houses are not unsafe and yes sloping floors ect are common.
Other rural appraisers, what are you doing?

 

[CANative]

State that the appraisal does not guarantee the property is free from defects and that a home inspection is always prudent.

I see the same kind of things.

 

[Tom4value]

I am very careful about not stating something I am not qualified to state. My qualifications regarding structural defects are slightly higher than a typical buyer. That’s it. 100 year old logs as structural support for a 100 year old house do not scare me. They lasted 100 years for a reason. A slight dip in the floor above is not an issue in a 100 year old house and is to be expected (lets see if you have any dips when you are 100!). It is only if the floor feels “spongy” and/or if I see noticeable cracks in the support that I would make an issue of it and call for an inspection.

 

[cmitchell]

I am very careful about not stating something I am not qualified to state. My qualifications regarding structural defects are slightly higher than a typical buyer. That’s it. 100 year old logs as structural support for a 100 year old house do not scare me. They lasted 100 years for a reason. A slight dip in the floor above is not an issue in a 100 year old house and is to be expected (lets see if you have any dips when you are 100!). It is only if the floor feels “spongy” and/or if I see noticeable cracks in the support that I would make an issue of it and call for an inspection.

I have lot of home improvement, home inspection experience and understand more than most buyers...To some degree I feel that's my job to provide the benefit of my experience to the lender and buyer.

What I'm talking about is a little different than yours because home owners are adding support over the yrs (def necessary because the result is a lot of joist sagging, I have seen it without support being added over the yrs) with out the guidence of a licensed contractor or engineer. It's clearly wrong based on the fact that a licensed professional would not add support or use undersized beams this way. Is saying I'm not a home inspector really enough, for FHA?


My big picture concerns is with FHA being used as subprime lending that these issues could be seen as affecting the value later.

 

[CANative]

FHA insured mortgages and so-called sub-prime loans are not the same thing.

 

[bobhoney]

FHA insured mortgages and so-called sub-prime loans are not the same thing.

True but 100% loans on aged units with agents pushing the heck out of prices and seller concession use is tricky for sure. Interesting enough, if you run the history on REO transactions in my market a large percent are FHA.

 

[bobhoney]

FHA insured mortgages and so-called sub-prime loans are not the same thing.

I just finished a FHA assignment for refi. The hous

State that the appraisal does not guarantee the property is free from defects and that a home inspection is always prudent.

I see the same kind of things.

View attachment 42768

No cutting of Redwood trees, now!

 

[CANative]

True but 100% loans on aged units with agents pushing the heck out of prices and seller concession use is tricky for sure. Interesting enough, if you run the history on REO transactions in my market a large percent are FHA.

That is essentially the idea. Losses are covered by MIP until 78%. So the program has been self-funded for 80+ years at no cost to the taxpayers.

 

[CANative]

But yes. More emphasis on collateral due to the limited credit and capacity.

 

[bobhoney]

State that the appraisal does not guarantee the property is free from defects and that a home inspection is always prudent.

I see the same kind of things.

View attachment 42768

Maybe 15-20 yrs or so access to redwood stopped in MD.

That is essentially the idea. Losses are covered by MIP until 78%. So the program has been self-funded for 80+ years at no cost to the taxpayers.

I hear you loud and clear. Very good point.