FHA and bare concrete floors

[Wm. Hattaway]

I know this has been debated before if bare concrete floors are a cosmetic issue or a subject to. I'm doing an FHA appraisal where the carpet was taken up and the concrete is now bare. FHA ATL HOC say's the appraisal is to be completed "subject to" the floors having a covering or sealant. I asked for the chapter and verse as the lender might shoot the messenger. They sent the following:

FHA Single Family / 4910.1, 94 Edition: Minimum Property Standards for Housing / CHAPTER 6: CONSTRUCTION (07/94) / 609: FINISH MATERIALS (07/94) / 609-3: PAINTING (07/94)
609-3.8: INTERIOR CONCRETE FLOORS (07/94)
a. If painted, at least two coats of resin emulsion paint, 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.

 

[Lloyd Bonafide]

a. If painted, at least two coats of resin emulsion paint, 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.

That is if painted. Nowhere does HUD say that the concrete must be painted, do they?

It's probably irrelevant, because the FHA lender will typically require flooring anyway, even though it may not be required by HUD.

 

[CANative]

FHA Single Family / 4910.1, 94 Edition: Minimum Property Standards for Housing / CHAPTER 6: CONSTRUCTION (07/94) / 609: FINISH MATERIALS (07/94) / 609-3: PAINTING (07/94)
609-3.8: INTERIOR CONCRETE FLOORS (07/94)
a. If painted, at least two coats of resin emulsion paint, 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.

They're citing minimum property standards (for new construction less than one year) instead of minimum property requirements (for existing construction more than one year.)

I don't think floor coverings are included in MPRs. But do what they say if you don't want trouble. lol

 

[Wm. Hattaway]

They're citing minimum property standards (for new construction less than one year) instead of minimum property requirements (for existing construction more than one year.)

I don't think floor coverings are included in MPRs. But do what they say if you don't want trouble. lol

Well that does complicate things. My subject is 36 years old. The floor covering was taken up for renovating but the house was sold before they completed it with the new floor covering.

 

[CANative]

Call your HOC and go right to one of the appraisers (Chief of Technical Support would be the best). Ask them what they expect to see in such a circumstance. They're the ones you have to answer to.

 

[NC Appraising]

Do appraisers in your market area and do you abide by ANSI Z7650-2003?

Page 4: "Floor finishes include, but are not limited to carpeting, vinyl sheathing, hardwood floors, and concrete floors with decorative finishes, but do not include bare or painted concrete".


So are you including the area in the AGLA?

 

[Mountain Man]

That mortgagee letter is from 1994, concrete floors are fine under FHA. Look for more current mortgagee letters in 2008 that address your specific issue. I don't have the mortgagee letter at hand, but it is after all your job to do research and investigate.

 

[woodsytf]

i had an appraisal a few years ago with bare cement in the kitchen and breakfast area, very contemporary/artsy/modern/industrial looking interior and it looked cool, but the underwriters twisted on it for a few days.

is it typical in the market? does it enhance the decor or marketability?

good luck!

 

[Wm. Hattaway]

That mortgagee letter is from 1994, concrete floors are fine under FHA. Look for more current mortgagee letters in 2008 that address your specific issue. I don't have the mortgagee letter at hand, but it is after all your job to do research and investigate.

That is what the call to ATL HOC was for and that mortgage letter reference is what they emailed me.

 

[CANative]

That is what the call to ATL HOC was for and that mortgage letter reference is what they emailed me.

It says that in the 4910 (new construction/existing construction less than 12 months) but it doesn't say the same thing in the 4905 (existing construction more 12 months).

Ask for clarification.