FHA Carpet

[NC Appraising]

FHA is now leaving more of the conditioning of appraisal up to the judgment of the appraisers. In the old days of VC sheets it was the other way around!

Imo, if carpeting had holes where people could trip, or exposed nail beds to floor, it would fail the security issue, or mold, or other dangerous substances into it such as chemicals, it would fail safety.

Other than that it is a cosmetic item and not part of MPR. As far as marketability, any buyer even the least informed one knows that carpet is an easy and relatively inexpensive replacement item. Strip it up and buy remnant carpet or even carpet tiles or vinyl tile flooring.

J,

No

4150.2 ​

o Cleaning or removing carpets is required only when

they are so badly soiled that they affect the

livability and/or marketability of the property.
The above was replaced by ML 48-2005.​

The thread poster is only referring to "soiled carpet". Which means carpet that is dirty as you know what.



This is from ml 48-2005

Repair Requirements​

As stated in Revised Appendix D, FHA now permits an “as-is” appraisal for existing properties that serve as security for FHA-insured mortgages when minor property deficiencies, which generally result from deferred maintenance and normal wear and tear, do not affect the safety of the occupants or the security and soundness of the property. FHA no longer requires repairs for these types of minor cosmetic deficiencies to bring a property into compliance with FHA Minimum Property Requirements. Specifically, the guidance provided in Handbook 4150.2, CHG-1, Chapter 3, Paragraph 3-6, A-7 referencing all-weather road surfaces; Paragraph 3-6, A-8 referencing poor workmanship; Paragraph 3-6, A-11 referencing debris and trash in crawl space; Paragraph 3-6, A-16 referencing steps without a handrail; Paragraph 3-6, C referencing bare floors, badly soiled carpeting and cracked plaster and sheetrock is no longer applicable. Additionally, the guidance provided in Handbook 4905.1, REV-1, Chapter 2, Paragraph 2-7, A-2 referencing all weather road surfaces; Paragraph 2-8 referencing poor workmanship and Paragraph 2-14, C referencing crawl spaces with debris and trash is no longer applicable. Any reference to the Valuation Condition form (form HUD-92564-VC) and protocol for its completion contained in Handbook 4150.2 is no longer applicable as well. Examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited to:​

· Missing handrails
· Cracked or damaged exit doors that are otherwise operable
· Cracked window glass
· Defective paint surfaces in homes constructed post 1978
· Minor plumbing leaks (such as leaky faucets)
· Defective floor finish or covering (worn through the finish, badly soiled carpeting)
· Evidence of previous (non-active) Wood Destroying Insect/Organism damage where there is no evidence of unrepaired structural damage
· Rotten or worn out counter tops
· Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post- 1978
· Poor workmanship
· Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)
· Crawl space with debris and trash
· Lack of an all weather driveway surface​

 

[J Grant]

FHA standards are pretty low!

 

[AnonApprsr]

We are appraisers. It's none of our business whether or not FHA rejects a loan. Our job is to develop and report an opinion of value.

I agree, however I also try to be helpful when I can.

Why use commercial lingo in a residential report. Since there is no MPR for floor coverings you should not use "incendiary" phrases and terms.

I agree with this as well. I would have noted the walls/flooring condition and moved on. I wouldn't want to make statements that introduced more potential problems if not necessary for the assignment.