FHA Property Inspection & Condition Assessment Flashcards

Which FHA requirement mandates that an appraiser observe and report on the condition of the roof during a property inspection?

Answer: HUD Handbook 4000.1

HUD Handbook 4000.1 requires FHA appraisers to inspect the roof and report if it has less than two years of remaining useful life.

Under FHA guidelines, what minimum distance must a private well be from a septic tank absorption field?

Answer: 100 feet

FHA requires a minimum separation of 100 feet between a private well and a septic tank absorption field to prevent contamination.

An FHA appraiser inspects a property and finds peeling paint on exterior surfaces of a home built in 1975. What is the required action?

Answer: Require repair or stabilization of all defective paint surfaces

For homes built before 1978, FHA requires that all defective paint (chipping, peeling, flaking) be repaired or stabilized before the loan can close.

Which condition would cause an FHA appraiser to call out a property as 'uninsurable' (UI) rather than 'insurable with repair escrow' (IE)?

Answer: Inoperable heating system in a cold-climate property

An inoperable heating system in a cold-climate property is a health and safety deficiency that renders a property uninsurable until repaired.

What does FHA require an appraiser to do when a property has an addition that lacks required permits?

Answer: Report it and note any adverse effect on value or marketability

FHA appraisers must report unpermitted additions and comment on whether they adversely affect the property's value, safety, or marketability.

Under FHA guidelines, what is the required minimum ceiling height for finished basement areas to be included in the gross living area (GLA)?

Answer: 7 feet

FHA requires a minimum ceiling height of 7 feet for below-grade finished areas to be counted toward gross living area.