Showing posts with label fha appraisal. Show all posts
Showing posts with label fha appraisal. Show all posts

Kentucky FHA Acceptable Sources of Heat for Appraisals


Kentucky FHA Acceptable Sources of Heat for A FHA Mortgage Loan Approval


Many people ask me what types of heat sources are okay for homes where the borrower is using FHA to finance the property.
Here’s the information – and by the way, USDA (Rural Housing) uses FHA rules listed below as their heat source guidelines too.
General Guidelines
• All habitable rooms must have a heat source
• Certain areas of the country do not require a heat source if normal for the area (i.e., Hawaii, certain counties in Florida)
Wood Stoves & Solar Systems
• Acceptable with certification that they were installed according to manufacturer’s recommendations.
• Must ALSO have a conventional heat source in all living areas.
• Must also have a heat source to maintain 50 degrees F in rooms where plumbing is located.
(Example: electric baseboard heat in bathroom, kitchen and basement/crawl space where plumbing pipes are located.)
Floor Heaters
• Acceptable
• If needs repairs or insufficient heat source for home, will require upgrade to conventional heat system.
Non-conventional Heating Systems
• Space heaters or non-conventional heat sources must comply with local codes.
• If does not comply, conventional heating system must be installed.
Propane Tanks
• Must be located a safe distance from the home.
• Must have ownership of propane tank UNLESS only leased tanks are available and normal for the area.
• Propane furnaces located in crawl space or basement is not acceptable.
I’m sure I have not covered every possibility but give me a call if you have any questions or reservations about listing a home that you think may not have an acceptable source of heat.



Kentucky FHA Home Appraisal Checklist

 



Kentucky FHA appraisals can take home buyers by surprise. That’s why we've put together some good-to-know info about the process. Feel free to use this to help educate your clients. 

Kentucky FHA Appraisal Checklist

Your Kentucky  FHA Home Appraisal Checklist 

 

If you’re using an Kentucky FHA loan to buy a home (or selling to FHA borrowers), the property must pass an FHA appraisal, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:

 

General Health and Safety

  • Foundation or structural defects
  • Whether the utilities (water, sewage, heat, and electricity) all work
  • Chipped or peeling paint in homes built before 1978
  • Incomplete renovations
  • Water damage
  • If the property is accessible to vehicles, especially emergency vehicles
  • Exposed wiring and uncovered junction boxes
  • Whether the house is too close to outside hazards, such as a leaking oil tank or a waste dump
  • Excessive noise, such as being close to an airport
  • Missing handrails

Exterior

  • Leaky or defective roof and holes in the siding
  • Leaning or broken fencing 
  • Doors that don’t properly open or close
  • Condition of gutters, chimney, stairs, railings, and porches
  • If swimming pools are up to code 

Every Room

  • Whether each room has electricity
  • Whether each room has a window or door to the exterior to be used as a fire escape

Kitchen

  • Missing or broken appliances usually sold with a home, including stove and refrigerator
  • Broken or leaking sink

Bathrooms

  • Broken or leaking toilet, sink, or tub/shower
  • No ventilation (either an exhaust fan or window)

Crawl space or basement

  • Basement moisture
  • Evidence of past or present standing water

Heating and Plumbing

  • Inoperable HVAC
  • Major plumbing issues and leaks

 

These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment! 



Updated FHA Info Letter Sent July 12, 2022 for Kentucky FHA Appraisal Reports


✨Applies to case numbers assigned on or after June 1, 2022


✨Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report;

🙌🏼Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report; 


✨Allows the appraisal update to be ordered AFTER an appraisal expires; and

👊🏼Eliminates the optional 30-day extension.


✨This is big news for FHA ✨


The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.🥊


  

Applies to case numbers assigned on or after June 1, 2022  Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report; Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report;   Allows the appraisal update to be ordered AFTER an appraisal expires; and Eliminates the optional 30-day extension.  ✨This is big news for FHA ✨  The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.


List of Kentucky FHA Appraisers below:  


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