FHA Roof/termite Question

[hlk1111]

Really need advice. Made an offer on a home and had to switch to FHA mortgage. He said they are very strict about appraisal/inspections.
The roof has 2 missing shingles, no vent, and there is water damaged plywood (visible through the attic) due to lack of flashing around the chimney. I did some of my own research and lost hope til i ran across this thread https://appraisersforum.com/forums/threads/FHA-water-stains-on-ceiling-calledf-for-new-roof.207599/
So my question is can they reject the loan based onwater stains alone? I have a certified roofer who will flash the chimney and fix the 2 shingles for a decent price. My realtor says i shouldnt pay to do these repairs because they might get overlooked. If the chimney is flashed it wont leak but will still have staining from water. Advice?
Also there are termite tunnels. The seller says it was treated for termites for 2 elderly people that lived there. She has no proof. Termite inspector said no live termites visible. Should i treat this prior to FHA appraisal/inspection as well? My realtor says no. That im worrying about problems that may go unnoticed. Im planning on replacing roof before fall anyhow and the termites i would treat for as soon as im the owner just preventative. But my gut feeling says fix these issues now?

 

[Tim The Enchanter]

Wait and see. The appraisal for FHA may not require it, then you can do things on your own time. If they do require, replacing a couple shingles etc is a small job.

 

[Terrel L. Shields]

Absolutely do not spend a dime on it before the sale closes. I know some folks who wasted $2000 fixing up a place only to have the deal die due to outstanding Leins.

 

[CANative]

What Lee said.

FTR.. here is what I ALWAYS put right up front in an FHA appraisal...

Scope of work clarifications, intended use and user(s), additional client requirements:
The intended use of the appraisal is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage (24 CFR § 200.145(b)). FHA and the Mortgagee are identified as the intended users of this appraisal report. The FHA Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only. A Home Inspection by a licensed Home Inspector is recommended. Refer to the HUD document "For Your Protection Get A Home Inspection."

Read and heed.

 

[glenn walker]

Normally if the appraiser sees water stains in ceilings- missing shingles he/she will recommend the lender have a licensed contractor inspect repair and give a 2-year roof certification. FHA will lend on that - NOW that's not just FHA - Even even doing a conventional if I saw water stains I would recommend the lender obtain roof certification. The problem with leaking roofs is they are often worse than what appears on the surface and water for years may have been seeping in attic where dampness causes mold and rot. ALSO I would not pay upfront for any work and require the seller to pay for any FHA required inspections and repairs.

Good Luck : ) LOL

 

[CANative]

Ceiling damage near vent fan. And where the drywall was opened up on the other side of the wall.

 

[hlk1111]

Thank you everyone for all the help. Its not the ceiling that has water damage. Its the actual plywood around the chimney that isnt flashed. However... There is very old ceiling tile in the upstairs bedroom. 1 new white tile in bedroom and one missing in the other bedroom. Neither of them make sense with the position of the chimney. It sounds like i should wait for appraisal. Im just nervous and dont want to lose this property

 

[CANative]

The result of not having flashing (this is from Friday.) I'll bet the guy now has $25,000 in damage for want of $100 worth of deferred maintenance.

 

[J Grant]

"Really need advice. Made an offer on a home and had to switch to FHA mortgage."

folks, this is the buyer, not the seller...The appraiser will call what they see as health/safety or repair that do not meet MPR and maybe this property is a fail for FHA ( unless owner wants to fix). There is another option if turns out it fails conventional FHA...

FHA 203k financing, where the loan is made subject to the repairs (higher value for as if it were repaird ) and the repair money is part of escrow for the loan from the lender (I think that is how it works, look it up and ask your loan officer about details)

 

[CANative]

"Really need advice. Made an offer on a home and had to switch to FHA mortgage."

folks, this is the buyer, not the seller...The appraiser will call what they see as health/safety or repair that do not meet MPR and maybe this property is a fail for FHA ( unless owner wants to fix). There is another option if turns out it fails conventional FHA...

FHA 203k financing, where the loan is made subject to the repairs (higher value for as if it were repaird ) and the repair money is part of escrow for the loan from the lender (I think that is how it works, look it up and ask your loan officer about details)

The OP stated that as the first sentence of the post. The OP is talking about making his own repairs just to get the mortgage to through.