Settlement cracks and FHA requirements

[Timothy Rock]

Hello,

I'm completing an FHA appraisal on a home which has settlement cracks along concrete block walls in a utility room and a fireplace. I could not find specific FHA guidelines on how to handle this. Check out the pictures. Thank you for the advice.

 

[Mr Rex]

How would you handle it on a Conventional loan?

 

[Timothy Rock]

I was planning on completing the appraisal "subject to" an inspection by a structural engineer. May affect the structural integrity of the home.. I just wanted your opinions. Thanks..

 

[incognito]

The first 2 photos appear to be a fireplace box. Regardless, I always call for inspection and repair if I can fit a quarter in the crack, or see through it, because it is not weather tight. I'm not sure what is going on with that wall in the third photo. It looks as if that block has been cut at one time, and/or some type of an addition. Very unusual. You make the call: Is it sound? Sanitary? (bugs, moisture, mildew from not being sealed from the elements)

 

[David Rasmussen]

Settlement cracks

Yes, "Subject to" and inspect by a qualified state licensed contractor.

 

[Richard J. Glesser]

Safety and structurally sound. Both appear to be compromised. I'd call for repair since it's obvious there is some settlement. Our obligation is to insure that FHA lends on structurally sound properties, not having the lender or Realtor send out some inspector to rubber-stamp the condition. I've called for inspections when it was questionable, but this doesn't appear to be.