If you are getting ready to sell your home, it’s important to make sure that if you plan to list it on the MLS, it is in acceptable condition to qualify for financing. Selling to an FHA buyer can greatly expand your buyer pool, but you should also be aware that since an FHA loan is a government-sponsored program, that means there is additional paperwork.
Your property must also meet specific condition standards to be approved by the underwriters, and it is the responsibility of the seller to ensure those conditions are met.
What You Need to Repair If You’re Selling to an FHA Buyer
Below, we cover some of the areas you may need to repair to ensure you are ready to sell to a buyer with FHA financing.
Electrical and Heating
No one wants to buy a home that could be a possible tinderbox, and FHA will want to ensure your home’s electrical and heating are in good shape before it will approve financing. This means ensuring there are no exposed or frayed wires in the electrical box. Additionally, all habitable rooms in your home should have a functioning heat source.
Roof and Attic
You will also need to check the condition of your home’s roof and attic. All moisture must be kept out of the roofing. It’s a good idea to have an experienced roofer check the condition of your roof to ensure it will last for a minimum of two more years.
Keep in mind that your roof cannot have more than three layers of roofing in order to qualify for FHA financing. If so, it will need a new roof.
The water heater in your home must convey with the property and must meet local building codes. If you are not sure whether your water heat complies with local building codes, now is the time to check.
FHA will want to ensure the buyer is not purchasing a property that will be dangerous to inhabit. Therefore, your property cannot have any contaminated soil or be within close proximity to a hazardous waste site. Additionally, there cannot be any gas or oil wells located on your property.
Other possible nuisances that will considered by FHA when determining whether to approve a property for financing include heavy traffic and any sources of excessive noise, such as airports nearby. The property also cannot be located within close proximity to high-voltage power lines or a TV or radio transmission tower.
Your property must provide sufficient, safe access for vehicles and pedestrians.
If your home has any structural conditions that might result in damage in the future, those conditions must be repaired before you can sell the property to an FHA buyer. Such conditions include:
- Defective Construction
- Excessive Dampness
- Termite Damage
- Continuing Settlement
If your home contains any asbestos that is deteriorating or damaged, FHA will not approve it for a loan, so an asbestos professional will need to inspect it.
Your home must have a minimum of one sink, shower, and toilet.
While FHA documents themselves do not detail any requirements regarding kitchen appliances, FHA will generally require that your property have a functioning kitchen, including a working stove, before it can be approved for FHA financing.
Highest Cash Offer Provides An Easy Alternative to Selling to an FHA Buyer
If you’d like to avoid all the hassles that come with selling to an FHA buyer, we here at Highest Cash Offer are here to help!
There are NO REPAIRS to make and we will buy your home AS-IS.
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