Bare Concrete- Not Stained

[davetherock]

I am doing an FHA refi - should know this one- the FHA help desk is out of commission until Tues. The owners have taken up the carpet in the 3 bedrooms - bare slab - dull grey like when the house was built (in 1999). No stained concrete, they just don't know what they want to do with it - stain it, carpet, wood etc...No safety issues, and the concrete is clean. Can this one go FHA? I will put a cost to cure since a potential homeowner would balk at bare grey concrete floors. This is for a refi.

 

[glenn walker]

I would condition the report subject to a floor covering being installed , could be carpet, tile , wood etc does not matter. Then just go do a 1004-D when the owner has installed a floor covering EASY

 

[Marty Boone]

Here is the old news.

609-3.8 Interior Concrete Floors

a. If painted, at least two coats of resin emulsion
paint, a solvent rubber paint or a floor and deck
enamel shall be applied. If oil paint is used, the
surface shall be neutralized before painting.

b. A coat of wax shall be applied over paint, stain or

an integral finish.

6-12

1994

4910.1

Now, here is the new (at least for now)

Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser.
The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
Required repairs will be limited to necessary requirements to:
• protect the health and safety of the occupants (Safety)
• protect the security of the property (Security)
• correct physical deficiencies or conditions affecting structural integrity (Soundness)

This is a cosmetic issue that does not fall under any of the 3 S's in my opinion.

http://portal.HUD.gov/hudportal/documents/huddoc?id=pfaq.pdf

 

[glenn walker]

I would call your HOC Tuesday and ask for advice ! ** Our HOC would most likely say cosmetic repairs or torn or worn out flooring is cosmetic in nature. *** No floor covering is NOT cosmetic and carpet, tile, wood something needs to be installed and a cost to cure would need to be estimated and adjustment would be required. You can go either way. **** BUT on a refinance the folks live there and either like it or plan on installing carpet, tile., laminated wood or whatever is popular in your state so I would probably just show the photos , do a cost-to cure and allow the FHA Underwriter or lender make the call.

 

[Marty Boone]

I agree call your HOC, or you can refer to http://portal.HUD.gov/hudportal/documents/huddoc?id=pfaq.pdf.

Page 5 from the FAQ.

Is carpeting still consider cosmetic if underfloor is unfinished (concrete or unfinished floorboard)?

yes, however, the underfloor may not have any safety hazards,.. ie tax strips, rough concrete

If the floor covering is removed and it`s just sub flooring, is that acceptable, or does it need to be sealed?

The appraiser needs to determine if the floor is safe for walking

FHA does not require floor coverings? So just a sub floor is ok?

if the sub floor is safe and does not create a hazard

Page 6, third question from the top (BINGO)!

FHA does not require carpet or flooring, you can have a cement floor? Yes.

 

[CANative]

Jeezoo.... It has a floor and the lack of floor covering does not have an adverse impact on livability, soundness or structural integrity. You don't need a cost to cure unless you want to use that as a way to developr an adjustment (don't forget a component for profit) for comps that have floor coverings.

 

[Terrel L. Shields]

Lowes - Pergo - $1.79 SF....

 

[Marty Boone]

Terrel, that might not be the best example.

• protect the health and safety of the occupants (Safety)

While Lumber Liquidators has been the target of lawsuits and federal investigations into allegations that the company’s China-sourced flooring contains exceedingly high levels of formaldehyde, hardware giant Lowe’s is now facing similar accusations from the hedge fund analyst who helped spark the Lumber Liquidators investigation.

Analyst Xuhua Zhou, who first brought the Lumber Liquidators issue to light in a June 2013 story on the Seeking Alpha website, now claims in a new Seeking Alpha report that some imported laminate flooring sold at Lowe’s also contains levels of formaldehyde that don’t meet certain safety standards.

I hope that we don't have to start testing all laminate flooring for FHA appraisals.

 

[Terrel L. Shields]

It's driven down the cost of flooring for sure. That's why I would use it. I don't buy the hysterics over the stuff. It can be sealed if necessary.


polyurethane will seal it.

 

[Riick]

It's driven down the cost of flooring for sure. That's why I would use it. I don't buy the hysterics over the stuff. It can be sealed if necessary.

It's garbage; friends who own multiple apartment buildings have stopped using it.
Get it wet and it curls up at the seams, and there are seams everywhere.
No refinishing possible, try and make a repair mid-floor - results are typically ugly.
There are better alternatives, solid wood T&G or even top-nailed is superior.