Are these required repairs for FHA loan (to include in 203K loan)

[PROSALES]

I am working on a purchase with an FHA loan and the buyer wants to buy a home that is in disrepair and will require a 203K loan (pipes stolen). Buyer submitted several pictures of items they noticed required repair, but they wanted to have confirmation that the items would be absolutely required to meet minimum FHA requirements and would need to be added into the loan. There is not a lot of room for repairs to be added into the loan because of qualification criteria, so any items that can be left out and have the home meet minimum FHA requirements would be ideal. My question is if any experienced FHA certified appraisers who have done 203K could tell me if the items below would be required and the ramifications of the damage into the home. Also if you could point me in the right direction so that I can read some of the requirements for this type of repairs being needed and minimum requirements for FHA I would appreciate it. Thank you!

Item 1: Garage has no walls. Garage is attached.

Item 2: Crack on floor on basement.

Item 3: Crack on ceiling inside the house.

 

[CANative]

I'm gonna go with probably not required repairs. But I'd have to see it first hand to be sure (of what I, as an appraiser doing the appraisal, would do.)

 

[Deleted member 77547]

Based on the pics, probably not required. Settling cracks are acceptable...gaping caverns no, or buckled concrete that would create a trip hazard.

Safety, soundness, security.

http://portal.HUD.gov/hudportal/HUD...administration/hudclips/handbooks/hsgh/4150.2

 

[RSW]

The 1st pic appears to have some water damage. The 2nd pic also appears to have some moisture issues. The 3rd pic could be a structural problem. I would recommend all three be inspected by a qualified professional to determine if any repairs are necessary. I cant say for certain there are or arn't any mpr required repairs.

 

[PROSALES]

Thanks all for the replies, I was thinking in this case it is best to assume the worst, get an estimate for all, and have a note for the appraiser and the lender that we only want to include in the 203K the items that are necessary for the property to meet MPR as per HUD. Does that sound reasonable from an appraiser's standpoint?

Thanks!

 

[RSW]

Not unless there are not any other items that would require repair to bring the subject up to HUD/FHA's MPRs.

 

[Mike Garrett RAA]

Make them tear the house down! Sure looks like a typical property to me. I live in a relatively new house and there are small cracks in the concrete in the garage. Very common in this area.

 

[PROSALES]

I just hope the appraiser we get feels the same way about cracks as you do Mike. But RSW made a good point that they might see water damage. I will recommend they do an inspection first and we'll see what we can get away with.

I would personally tear the house down if I could, just because these kind of deals tend to become a nightmare.