In the FHA inspections that I have done, I've noticed many recurring FHA issues, most of which are quick and easy fixes. I keep telling myself that if the home owner only knew what types of things I inspect during an FHA inspection, he could save himself a delay in the closing of the loan and a $100.00 re inspection fee.
Here is my list of the Top 10 recurring FHA issues:
1. UTILITIES ARE TURNED OFF AT THE TIME OF THE INSPECTION
This is usually the case in vacant homes. All utilities (Gas, Water, Electricity) need to be on and functioning normally. The water heater needs to be lit and hot water needs to be working for all the fixtures fed by the water heater.
2. PEELING/CHIPPING PAINT ON HOMES BUILT BEFORE 1978
Houses built before 1978 may have lead-based paint. For this reason, any areas where the paint is chipping or peeling need to be scraped, the shavings need to be cleaned-up and thrown away, and the area needs to be repainted. I see peeling paint a lot on exterior wood siding, soffit and fascia, and around windows and doors.
3. MISSING COVERS FOR ELECTRICAL BOXES, OUTLETS, AND LIGHT BOXES
This is a particularly easy and cheap problem to fix. The covers can be purchased at any hardware store and are cheap. Just screw the cover to the box and you're done! Most home owners tell me that they never noticed that the box didn't have a cover...or that they have intended to cover the boxes for years. Now is the time to get it done.
4. LEAKY PLUMBING FIXTURES AND DRAINS
Faucets, toilets, and drains that leak will need to be repaired. The above pictures show a tub faucet in a vacant home that wouldn't shut off completely. It nearly filled up the tub when I found it. The toilet in the above picture is leaking at the base.
5. LOOSE OR SPLICED WIRES OUTSIDE OF AN ELECTRICAL BOX
Ends of wires need to be covered by some type of electrical box. Wire nuts on the ends of wires are not enough protection. They need to be in an electrical box with a cover.
6. MISSING SMOKE DETECTORS
Many people remove their hard-wired smoke detectors because a dead battery causes annoying chirping, and they don't have a new battery on hand. They intended to install a battery and replace the smoke detector but now is the time to get this simple item done.
7. LOCKED SHEDS, GARAGES, AND CLOSETS
The appraiser will need to inspect all areas of the property. He needs to look inside all rooms, closets, garages, sheds, and any other enclosed space on the property. If you are not planning to be at the property while the appraiser is inspecting, leave all areas unlocked and accessible, or leave a key.
8. BROKEN WINDOWS
Look closely at the above pictures to see that these are broken windows that will need to be fixed, then reinspected. The FHA released guidelines a few months ago suggest a window with a small crack doesn't require repair for an FHA loan, however, if the window is broken, it needs to be repaired.
9. OTHER DAMAGE TO THE PROPERTY OR COMPLETELY WORN-OUT FIXTURES
If any part of the house is severely damaged or completely worn out, that item will need to be repaired then reinspected. This includes things like large holes in drywall, completely worn out carpet, severe damage to door and trim, worn out appliances, plumbing fixtures, light fixtures, counter tops...
10. STRUCTURAL PROBLEMS/DAMAGE
Structural deterioration such as rotting and weak joists, settling, large foundation cracks and other structural damage will need to be addressed.
I hope this list helps you to know more of the specifics of an FHA inspection. Please use it as a guide to prepare and let me know if you find it helpful.
