How hard is it to pass a FHA inspection?
To pass an FHA inspection, however, your foundation must be free of significant cracks as well as ongoing water damage or evidence thereof. If you have a crawl space under your home, it must have proper ventilation and be free and clear of trash and debris. FHA inspectors look up as well as down.
What would disqualify a home from FHA?
Homes Must Be Primarily Residential It is possible to purchase a mixed-use property using an FHA home loan and its’ low down payment requirements, but if the home is not primarily used as a residence and has 50% or more floor space taken up by non-residential use it cannot qualify for an FHA mortgage.
What things do FHA appraisers look for?
Site visit: FHA appraisers visit homes in person to write notes and take photos. They check for the structures quality, the interior and exterior condition, the state of fixtures and systems and the condition of the lot.
Do FHA appraisals come in low?
Having an FHA home appraisal come in below the purchase price is a fairly common scenario. (Of course, that probably doesn’t make you feel any better.) You basically have three options. The seller can reduce the sale price to match the appraised value.
Why would a seller not accept an FHA loan?
Reasons Sellers Don’t Like FHA Loans Both reasons have to do with the strict guidelines imposed because FHA loans are government-insured loans. For one, if the home is appraised for less than the agreed-upon price, the seller must reduce the selling price to match the appraised price, or the deal will fall through.
How often do FHA loans fall through?
In fact, about 73% of all FHA loans successfully close within 90 days, according to Ellie Mae’s Origination Insight Report from May 2019. For comparison’s sake, about 75% of all conventional loans successfully close within 90 days. That’s only a 2% difference.