The appraiser must inspect the attic for evidence of possible roof problems. The roof cannot have more than three layers of roofing. If the inspection reveals the need for roof repairs, and the roof already has three or more layers of roofing, the FHA requires a new roof.
Can you get an FHA loan with a bad roof?
Q: Is it a problem for an FHA loan if the roof is flat? A: As long as there are no issues pointing toward potential roof problems (such as stains on the ceiling or badly rotted eaves), there is no reason to be alarmed. Straight from HUD, “FHA no longer mandates automatic inspection of flat and/or unobservable roofs.
Does FHA look at roofs?
An FHA appraiser is required to view the roof, but does not specifically have to step out onto the surface of it. That’s one big difference between an appraisal and a home inspection.
What disqualifies a house from FHA?
Structure: The overall structure of the property must be in good enough condition to keep its occupants safe. This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.
Can you get a mortgage on a house with a bad roof?
If you plan on getting a mortgage to buy the house, you’ll need to keep in mind that you’ll be required to purchase homeowners insurance to protect the investment. … Even a roof in good condition can be old enough to be a problem for some companies–and if you can’t get the insurance then you won’t get the mortgage.
Why would FHA not approve a home?
FHA home loans are not automatically rejected because the house is in certain natural disaster zones or corridors, but if the right kind of insurance is not available in that area, the lender may have no choice but to turn down the mortgage loan application for that property unless proper insurance coverage is found.
Should I buy a house with a 30 year old roof?
An Old Roof Isn’t Necessarily a Failing Roof
And if the seller went to great lengths to keep their roof in good condition, it might still be worth the investment. Just because a roof is old doesn’t mean it’s failing. … And that means you can still consider buying the house without worrying too much about the roof’s age.
Do appraisers look at roofs?
While there are endless minor details in a home, the inspectors and appraisers are focused on major features including: Foundation, walls, exterior structures. Roof, windows. Heating and air conditioning.
Can a seller refuse FHA loan?
There’s no law that can compel a seller to accept FHA financing, though sellers artificially limit their buyer pool by doing so. Buyers, though, can help their cause by agreeing to an “as is” appraisal, for one. They might also consider asking for less in seller contributions to help with closing costs.
Who pays for FHA appraisal?
Who pays for FHA appraisals? The buyer is responsible for the cost of the home appraisal. These costs typically vary by market and depend on the size, age and condition of the home. Generally speaking, they fall between $300 and $500, in most cases.
What is the downside of a FHA loan?
Higher total mortgage insurance costs. Borrowers pay a monthly FHA mortgage insurance premium (MIP) and upfront mortgage insurance premium (UFMIP) of 1.75% on every FHA loan, regardless of down payment. A 20% down payment eliminates the need for PMI on a conventional purchase loan.
What are the new FHA guidelines?
Important FHA Guidelines for Borrowers
- FICO® score at least 580 = 3.5% down payment.
- FICO® score between 500 and 579 = 10% down payment.
- MIP (Mortgage Insurance Premium ) is required.
- Debt-to-Income Ratio < 43%.
- The home must be the borrower’s primary residence.
- Borrower must have steady income and proof of employment.
What kind of repairs does FHA require?
The FHA does not require the repair of cosmetic or minor defects, deferred maintenance, and normal wear if they do not affect the safety, security, or soundness of the home. 2 The FHA says that examples of such problems include, but are not limited to, the following: Missing handrails.
Can a mortgage be denied after appraisal?
Your lender can deny your loan if the home appraisal comes in lower than your loan amount. You can appeal the mortgage denial, ask the seller to reduce the sales price or cover the difference with your own money.
What makes a house Unmortgageable?
Properties become unmortgageable for many reasons: The previous owner allowed it to fall into disrepair, the banks are tightening their criteria, or the property does not meet the necessary requirements to take out a loan. But if you see promise in the property you do not have to let it go to waste.
Can you roll a new roof into a mortgage?
Whether the buyer or seller pays for a new roof depends on their negotiations and agreement. … If the buyer has to pay for the repairs/replacement, the selling price of the new home could be increased by the amount required, and costs rolled into the mortgage payments.