FHA FHA Property Inspection & Condition Assessment 1 — Questions and Answers
Question 1: Which FHA requirement mandates that an appraiser observe and report on the condition of the roof during a property inspection?
- HUD Handbook 4000.1 (Correct answer)
- FNMA Selling Guide
- RESPA Section 8
- TRID Disclosure Rule
Correct 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.
Question 2: Under FHA guidelines, what minimum distance must a private well be from a septic tank absorption field?
- 50 feet
- 100 feet (Correct answer)
- 75 feet
- 25 feet
Correct answer: 100 feet
FHA requires a minimum separation of 100 feet between a private well and a septic tank absorption field to prevent contamination.
Question 3: An FHA appraiser inspects a property and finds peeling paint on exterior surfaces of a home built in 1975. What is the required action?
- Note it as cosmetic and move on
- Require repair or stabilization of all defective paint surfaces (Correct answer)
- Recommend a lead paint test only
- Decline to appraise until repainted
Correct 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.
Question 4: Which condition would cause an FHA appraiser to call out a property as 'uninsurable' (UI) rather than 'insurable with repair escrow' (IE)?
- Minor cracked drywall
- Missing handrail on interior stairs
- Inoperable heating system in a cold-climate property (Correct answer)
- Cosmetic staining on carpet
Correct 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.
Question 5: What does FHA require an appraiser to do when a property has an addition that lacks required permits?
- Ignore it if the addition appears structurally sound
- Report it and note any adverse effect on value or marketability (Correct answer)
- Automatically call out the property as uninsurable
- Require demolition of the addition before appraisal
Correct 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.
Question 6: Under FHA guidelines, what is the required minimum ceiling height for finished basement areas to be included in the gross living area (GLA)?
- 6 feet
- 7 feet (Correct answer)
- 6 feet 4 inches
- 8 feet
Correct answer: 7 feet
FHA requires a minimum ceiling height of 7 feet for below-grade finished areas to be counted toward gross living area.
FHA FHA Property Inspection & Condition Assessment 1
Which FHA requirement mandates that an appraiser observe and report on the condition of the roof during a property inspection?