FHA Environmental Hazards & Site Conditions 2

Question 1

An FHA appraiser notices visible mold on interior walls and ceilings of a property. What is the required course of action?

Accepted Answer

Note the condition and require professional mold remediation prior to loan closing

Answer

Visible mold is a health and safety hazard under FHA MPRs; the appraiser must note it and condition the appraisal on professional remediation and correction of the underlying moisture source before the loan can close.

Question 2

What is the minimum required separation between a private well and a septic system drain field/leach field under FHA Minimum Property Requirements?

Accepted Answer

100 feet

Answer

FHA MPRs require a minimum 100-foot separation between a private well and the septic drain/leach field—a greater distance than the 50-foot requirement for the septic tank itself—to prevent groundwater contamination.

Question 3

A property has documented evidence of prior use as a methamphetamine lab. What is the FHA appraiser's obligation?

Accepted Answer

Note the condition as a significant health and safety concern and require certified decontamination before FHA financing

Answer

Meth lab contamination leaves toxic residues that pose serious health risks; FHA requires the appraiser to flag the property and condition financing on certified decontamination and clearance testing by a qualified specialist.

Question 4

Which of the following situations would most likely trigger a requirement for an environmental site assessment (ESA) on an FHA-financed property?

Accepted Answer

Observable evidence of contamination on the property or its location near a known hazardous waste site

Answer

FHA directs appraisers to flag properties when there is observable evidence of environmental contamination (staining, odors, distressed vegetation) or known proximity to hazardous waste sites, which may trigger a Phase I or Phase II ESA.

Question 5

An FHA appraiser identifies Chinese drywall (imported drywall that emits sulfur compounds and causes corrosion and health concerns) in a home. What is the appropriate appraisal requirement?

Accepted Answer

Require complete replacement of all affected drywall before FHA financing can proceed

Answer

Chinese drywall is a known health and safety hazard that causes corrosion of electrical systems and HVAC components and health issues for occupants; FHA requires remediation (replacement) before the loan can close.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Environmental Hazards & Site Conditions 2