FHA Guidance "typically"

[SierraMV]

I received this guidance when I reached out to FHA Connect regarding a lack of floor covering in a MF Home. In what instances would an exposed, painted subfloor be allowed? This is a sale
and the Realtor is a pill, so I just want to make sure I am covering all my bases. The flooring is missing from all three bedrooms, hallway, living room and entry/mudroom.

FROM FHA:

Your question was regarding Sub Floor.

When appraising a manufactured home with removed flooring and a painted wood subfloor, the appraiser must report the condition and determine if the home meets Minimum Property Requirements (MPR) for FHA. Because exposed subfloors can impact functional utility, safety, and habitability, this situation typically requires a "Subject To" appraisal, meaning the loan is contingent upon finishing the flooring.

 

[Zoe]

I had a stick built recently and floor covering was missing in primary bedroom. It had some other required repairs but VA told me to let it go. Said I could adjust for it. It was bare concrete floor. Owner was planning to install floor covering after loan closed. It was a cash out refinance.

I think on new construction it would be different. This house was probably built in the 70's.

If you have like carpet tacks sticking up or something that is a safety harzard or rotten wood or something, it would be different.

 

[Zoe]

If you have that many rooms too, I would adjust to replace floor covering for "as is" value. I would do a cost to cure condition adjustment.

If all your comps have floor covering, it needs a condition adjustment for bare/painted subfloor.

Make your realtor happy. Your realtor is atypically motivated. LOL

You are gonna have to make the condition adjustment. Call home depot or lowes or reference some cost source. Remember your comps may not have brand new floor covering so if they don't, I would not go full cost to cure. Your comps probably have depreciated floor covering.

If your comps have old floor covering, then the subject would be superior with brand new floor covering.

I would definitely do it on condition line and explain in comments. Your realtor will be fine.

 

[Tom D]

FHA are fussy about bard plywood, or unfinished concrete/wood GLA floors in any house. There is no FHA 'as is' with this. Can get splinters. Either refi, or worse yet sale, it has to be corrected. The quote above says, 'loan is contingent upon finishing the flooring'. I thought that painted wood was a finish. But me no have any visual picture of what those floors look like. But if really unfinished, subject to the cheapest wall to wall carpet, or vinyl covering. You just say, subject to what type of covering to qualify. If my house i would shellac or dark poly the wood floors, and put an area rug. This is a sale. Remember, the happy buyer today is the angry owner tomorrow.

And always remember, FHA has a very big stick to hit you with, even if you thought you were right, but weren't. You don't make the rules, you just have to enforce them.

 

[Zoe]

FHA are fussy about bard plywood, or unfinished concrete/wood GLA floors in any house. There is no FHA 'as is' with this. Can get splinters. Either refi, or worse yet sale, it has to be corrected. The quote above says, 'loan is contingent upon finishing the flooring'. I thought that painted wood was a finish. But me no have any visual picture of what those floors look like. But if really unfinished, subject to the cheapest wall to wall carpet, or vinyl covering. You just say, subject to what type of covering to qualify. If my house i would shellac or dark poly the wood floors, and put an area rug. This is a sale. Remember, the happy buyer today is the angry owner tomorrow.

And always remember, FHA has a very big stick to hit you with, even if you thought you were right, but weren't. You don't make the rules, you just have to enforce them.

The OP probably should get somebody with HUD on the phone and confirm it. Document it in workfile. Name, date, time and ask for email to confirm.

Not too much to ask. The realtor can wait.

 

[RSW]

If you have that many rooms too, I would adjust to replace floor covering for "as is" value. I would do a cost to cure condition adjustment.

If all your comps have floor covering, it needs a condition adjustment for bare/painted subfloor.

Make your realtor happy. Your realtor is atypically motivated. LOL

You are gonna have to make the condition adjustment. Call home depot or lowes or reference some cost source. Remember your comps may not have brand new floor covering so if they don't, I would not go full cost to cure. Your comps probably have depreciated floor covering.

If your comps have old floor covering, then the subject would be superior with brand new floor covering.

I would definitely do it on condition line and explain in comments. Your realtor will be fine.

That's not a condition adjustment. It would be a quality adjustment.

 

[Zoe]

That's not a condition adjustment. It would be a quality adjustment.

Okay. I won't argue. Tom D is probably right. They need confirmation with FHA/HUD before completing the assignment.

I like to talk to somebody on the phone on something like this.

You know dang well the typical comp has floor covering.

 

[Dublin ohio]

That's not a condition adjustment. It would be a quality adjustment.

How could it be a "quality" adjustment. There are no floor coverings. If it was just a "quality" issue you could do the appraisal as is with no requirement to install floor coverings. It's not like you are comparing sheet vinyl to hardwood floors

 

[Zoe]

How could it be a "quality" adjustment. There are no floor coverings. If it was just a "quality" issue you could do the appraisal as is with no requirement to install floor coverings. It's not like you are comparing sheet vinyl to hardwood floors

That's the way I see it. You know the subject had floor covering at one time. It is in worse condition than before and the competing properties.

 

[TerryRohrer]

Most manufactured homes have particle board subflooring. That is not suitable for flooring, no matter what substance they slop on it. I would make the report subject to installing flooring, or would state it doesn't meet MPRs. That is like having painted OSB for siding.