Below is a detailed accounting of the property condition requirements for FHA and VA loans:
FHA Repair Requirements for a Home
- Non-permitted additions – Additions that are not up to code are often flagged in FHA loans, although not always
- Garages that have been built up to provide additional living space may not meet FHA requirements
- Peeling paint that is a lead hazard – Usually on homes built before 1978.
- Damaged rain gutters and unpainted downspouts
- Outbuildings that are rotten and in need of demolition
- Malfunctioning exterior doors
- Uncovered junction boxes and exposed wiring
- Major plumbing issues and leaks
- HVAC systems that are not operational
- Major roof issues – including leaking roofs, composition over a shake, defective roofs and roofs that are expected to fail within three years
- Pest infestations that are visible and active
- Porches with rotting support columns
- Missing appliances that one can reasonably expect to be sold with a home, like a cooking range
- Bedrooms that do not meet minimum safety guidelines, including having windows that are too small to exit through or windows with bars that do not release for someone to use the window as an exit.
- Foundation defects
- Structural defects
- Basements with water issues, such as leaks or standing water
- Standing water present in the crawl space or evidence that water puddles in the crawl space at times
- Kitchen appliances that are not operational, such as a broken faucet or stove
- Non-operational swimming pools, including pools that are empty, pools that do not have a working pump and pools that have been abandoned and contain standing water
- Window screens with visible rips and tears
- Water heaters that do not have an operational pressure relief valve
- Fencing that is broken, leaning, or otherwise damaged so that it is not functional
VA Repair Requirements for a Home
- Public road access – the home must be accessible from a public road, and the road needs an all-weather surface. Private road access requires an easement
- Walls need to be accessible for maintenance purposes
- The home must be available without needing to go through another home, such as if you had to go through one apartment to reach another apartment
- Yards must be accessible without needing to trespass illegally through the yard or unit of another party
- Damaged paint that could contain lead, which generally means paint on homes built before 1978
- Utilities need to be independent surrounding units, including electricity, natural gas, sewer or septic system and running water
- The home must serve as the buyer’s primary residence, not be used as a rental property
- The house needs to have sufficient heat for safety and comfort. Homes with a wood burning stove as the primary heat source must also include a secondary heating system that is capable of providing heating to make the air 50 degrees and to circulate that air among the plumbing
- Fresh, safe water must be available to the home that is reliable and sanitized
- All areas requiring ventilation for safety must have them, including basements and attics
- The house needs to be comfortably habitable, which means having enough room for the buyer to live, eat, cook and sleep
- Structural defects
- Foundation defects
- Plumbing issues, including severe plumbing leaks
- Rotten wood on the exterior of the home
- Any property impairment that makes the home unsafe or unsanitary
- Drainage issues that cause water to accumulate in the yard, driveway, walkways, etc.
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