FHA Environmental Hazards & Site Conditions

Question 1

Under FHA guidelines, when must an appraiser identify and flag defective paint in a pre-1978 home?

Accepted Answer

Whenever paint is peeling, chipping, flaking, or otherwise defective on any surface

Answer

FHA Handbook 4000.1 requires appraisers to identify all defective paint—peeling, chipping, flaking, or worn—on any interior or exterior surface of pre-1978 homes and require repair (paint stabilization) before loan closing.

Question 2

What is the minimum required distance between a private well and a septic tank under FHA Minimum Property Requirements (MPR)?

Accepted Answer

50 feet

Answer

FHA MPRs specify that a private well must be at least 50 feet from any septic tank to minimize the risk of contamination of the drinking water supply.

Question 3

A property is located in FEMA Flood Zone AE. What must an FHA appraiser note in the appraisal report?

Accepted Answer

That the property is in a Special Flood Hazard Area and NFIP flood insurance will be required as a condition of FHA financing

Answer

Zone AE is a Special Flood Hazard Area (SFHA); FHA requires the appraiser to note this and flag that NFIP flood insurance is a mandatory condition of the loan.

Question 4

When an FHA appraiser observes friable asbestos-containing materials (ACM) in a home, what is the appropriate course of action?

Accepted Answer

Note the condition in the report and require remediation by a licensed professional before loan closing

Answer

Friable ACM is a health and safety hazard; FHA appraisers must note its presence and condition the appraisal on remediation by a qualified asbestos abatement contractor prior to loan closing.

Question 5

Which condition related to underground storage tanks (USTs) requires an FHA appraiser to flag a property for further environmental review?

Accepted Answer

Observable evidence of a current or former UST on the subject property or within approximately 300 feet

Answer

FHA guidance directs appraisers to flag evidence of current or former USTs on the property or within the immediate vicinity (approximately 300 feet) as a potential environmental hazard requiring further investigation.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Environmental Hazards & Site Conditions