FHA FHA Property Inspection & Condition Assessment

Question 1

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

Accepted Answer

HUD Handbook 4000.1

Answer

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?

Accepted Answer

100 feet

Answer

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?

Accepted Answer

Require repair or stabilization of all defective paint surfaces

Answer

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)?

Accepted Answer

Inoperable heating system in a cold-climate property

Answer

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?

Accepted Answer

Report it and note any adverse effect on value or marketability

Answer

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

(FHA) Federal Housing Administration Appraiser Certification Practice Test