FHA Guidelines for 2015

FHA Guidelines for 2015 - What the Appraiser Looks for

Read more: http://www.fhahandbook.com/appraisal-guidelines.php#ixzz3tT56xhL3

If you use an FHA loan to buy a house, the property will have to be appraised and inspected by a HUD-approved home appraiser. This individual will determine the current market value of the property, and will also inspect it to ensure it meets HUD's minimum property standards. Here is an overview of FHA appraisal guidelines in 2015, based on current policy handbooks.

What Is an Appraisal?

Let's start with a quick definition. An appraisal is an expert assessment of a particular product or asset (in this case a house) to determine its value. Within the context of FHA loans, the purpose of the appraisal is to determine the market value of the home that is being purchased.

During this process, the appraiser will look at comparable properties that have sold recently, in the same area as the one being purchased. He will also visit the "subject house" and evaluate it both inside and out. After this review process, the appraiser will write a report to detail his findings. The report will include an estimated value of the home, as well as any required repairs. The report will then be sent to the mortgage lender for review and further action.

How the FHA Process Is Different from a 'Regular' Transaction

Home buyers and homeowners are often surprised to find that FHA appraisal guidelines include detailed instructions for inspecting the property. This is different from a standard appraisal, where the appraiser mainly wants to know what the house is worth. When a Federal Housing Administration home loan is being used, the appraiser basically has to perform double duty.

Here are the primary differences:

Conventional: In a typical real estate transaction, where a conventional (non-government-insured) home loan is being used, the appraiser is mostly concerned with the current market value of the property in question. That is his primary objective when visiting the house. He is only concerned with the condition of the property as it relates to the valueFHA: When an FHA loan is being used, the appraiser has two objectives. The Department of Housing and Urban Development (HUD) requires him to determine the current market value, as with any appraisal. But they also require a property inspection to make sure the home meets HUD's minimum standards for health and safety. This is the "double duty" mentioned earlier. It's what makes the FHA appraisal process unique.

So the primary difference between FHA and regular appraisals is the level of inspection that is required by HUD. If the HUD-approved appraiser flags certain issues -- such as peeling paint, loose handrails, or other safety issues -- those issues must be corrected before the loan will be funded. In other words, the transaction will be put on "hold" until the discrepancies are resolved. That is not the case with a regular appraisal used for a conventional home loan.

Home buyers would be wise to have a complete "regular" home inspection separate from the "health-and-safety" inspection conducted by the FHA appraiser. HUD actually encourages this. All borrowers who use this program have to sign a disclosure that says, "I understand the importance of getting an independent home inspection. I have thought about this before I signed a contract with the seller for a home."

To clarify: HUD requires an appraisal (with a built-in health-and-safety inspection). They do not require a regular home inspection -- but they strongly encourage it. This is a source of common confusion among buyers and sellers alike.

Overview of FHA Appraisal Guidelines for 2015

According to the 2015 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser.

At a minimum, the appraiser must complete the following steps:

Visually inspect the subject property both inside and out.Take photos of the property to be included within the loan file. The photos must show the sides, front and rear of the home, as well as any value-adding improvements such as a pool or patio.Take a photo of each comparable sale transaction that is being used to support the appraisal.Obtain and provide a copy of a street map that shows the location of the property and each comparable sale, or "comp," used during the valuation.Take photos that show the grade of the lot, if it's a proposed construction.

These are the minimum steps that must be performed during an FHA home appraisal.

What Does the Appraiser Look for?

So, what does the FHA appraiser look for during this process? The primary areas of inspection are the roof, the foundation, lot grade, ventilation, mechanical systems, heating, electricity, and crawl spaces (when present).

Here are some of the key inspection areas required by HUD:

HUD's primary concern is the health and safety of the home buyer who will actually live in the house. Thus, most of their appraisal / inspection checkpoints have to do with health and safety aspects of the property. Above all, the home must be habitable and comfortable, without any potential hazards to the occupant.The lot should be graded in a way that prevents moisture from entering the basement and/or foundation. In other words, the lot should be sloped to allow water to drain away from the house -- not toward it.All bedrooms should have egress to the exterior, for reasons of fire safety. A bedroom window will suffice, as long as it's large enough to allow egress.Many homes built before 1978 still contain lead-based paint, which is a potential health hazard. In these homes, the appraiser will check for damaged paint (peeling, chipping, etc.). Such conditions must be corrected before the loan will go through.All steps and stairways must have a handrail for safety. This is a commonly cited discrepancy during FHA appraisals.The heating system must be sufficient to create "healthful and comfortable living conditions" inside the home.The roof should be in a good state of repair and must keep moisture from entering the home. It should "provide reasonable future utility, durability and economy of maintenance."The foundation should be in good repair and able to withstand "all normal loads imposed" on it.

According to HUD Handbook 4150.2, the home "must be free of all known hazards and adverse conditions that may affect the health and safety of the occupants."

The bottom is that if something poses a threat to the health and safety of the occupant, or to the structure itself, it will probably be marked as "subject to repair." This is the central theme that runs throughout the appraisal guidelines.

More: For a complete checklist of these and other appraisal requirements, refer to HUD Handbook 4150.2. You'll find it on the HUD.gov website, and you can also download it from our website.

Making Repairs After the Inspection

There's a common misconception that FHA appraisals are unnecessarily strict, and that any inspection "hits" will end your chances of getting a loan. This is incorrect. In fact, the health-and-safety aspects of the FHA appraisal have gotten a bit more relaxed over the years. Additionally, most discrepancies are fully correctable. If they are corrected before the final inspection (when the appraiser follows up on the hit list), the loan can still move forward.

In most cases, the only "deal breakers" are serious safety issues that cannot easily be corrected. An example would be a bedroom with no windows or doors, and therefore no egress in the event of a fire. Another example would be an older home with a deteriorated roof and holes in the floor (i.e., a fixer-upper). In both of these cases, the discrepancies (A) create hazardous conditions and (B) cannot be easily fixed. These are the types of issues that send FHA loans off the track.

In most cases, however, flagged discrepancies can be resolved fairly easily -- if the seller is willing to fix them. If the items are repaired or corrected to the appraiser's satisfaction, the deal can move forward.

The official FHA appraisal guidelines for 2015 state this clearly: "Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants."

Where to Learn More: HUD Handbook 4150.2

Most of the information above was adapted from HUD Handbook 4150.2. You can find more information about HUD's appraisal guidelines for FHA loans in this particular handbook. It's available on the Department of Housing and Urban Development website, and also on the "HUD Guidelines" page of this website (look for that tab in the main menu above).

If you really want to learn more about these appraisal requirements -- for instance, if you're a licensed appraiser and you want to get approved by HUD to inspect FHA properties -- you should refer to their "Mortgagee Letters & Handbook for Roster Appraisers." This is a collection of letters and handbooks that explain all property requirements and inspection procedures. The easiest way to find it is with a Google search for the full title.

RECENT FHA ARTICLESDebt-to-Income Ratio Limits for 2015 - 2016Do FHA Lenders Check My Credit Score Again Before Closing?How to Start the FHA Loan Process: Putting First Things FirstDifference Between FHA and Conventional Loans – 2015 UpdateMy Credit Score Is Too Low for an FHA Mortgage LoanWhy First-Time Home Buyers Use the FHA Loan ProgramChicago, Illinois FHA Mortgage Rates in 2015How Do I Get the Lowest Rate on an FHA Loan?I’m Pre-Qualified by an FHA Lender. Does That Mean I’ll Be Approved?FHA Credit Report Requirements for Borrowers, According to HUDFHA Document Checklist and Documentation Requirements for 2015

Read more: http://www.fhahandbook.com/appraisal-guidelines.php#ixzz3tT2nIs1O

Are these rumors keeping you from being a homeowner?

Many people get misinformation about the homebuying process.
Don't let false rumors like these keep you from buying your own property:

"You can't buy property if you have a history of bad credit."
You don't need a perfect credit score to qualify for a loan, and you can take steps to repair your credit that will put you on the path to homeownership. Talk to a Texas REALTOR® about your current financial situation to determine a realistic timeline for your home purchase.

"You need a 20% downpayment to buy a home."
There are many programs and mortgage loans available for homebuyers who have less than 20% for a downpayment or no money for closing costs. Visit txhomeprograms.org and contact a Texas REALTOR® to learn about programs you may qualify for.

"You can't buy property in Texas if you're not a U.S. citizen."
Texas properties have been desirable investments for international buyers for years. In fact, international buyers accounted for $11.06 billion in home sales in the state between March 2013 and March 2014. There are Texas REALTORS® who specialize in working with international buyers and can help you understand the process.
Heard other rumors you're not sure about? Find a Texas REALTOR® to help you figure out the realities of purchasing your own property in Texas.

www.PattiLee.Properties

EMAIL ME

ANOTHER RAIN RECORD Wise County

reposted from Wise County Messenger

ANOTHER RAIN RECORD – A rainy Thanksgiving holiday weekend set another weather record. For the month, Wise County received 10.8 inches, making it the wettest November on record. The previous November record was 7.39 inches in 1996. Decatur received more than that in a two-day span last week when 7.49 inches of rain fell on Friday and Saturday. It also extends the wettest year on record total to 66.88 inches.

LAKE CLOSED TO BOATS – Due to all the rain over the weekend, rising lake levels has led to the closure of Lake Bridgeport to all boat traffic, the Tarrant Regional Water District announced. As of 7 a.m. Tuesday, the lake stood at 838.07 feet above sea level, just over two feet above conservation level. Water was being discharged at 4,670 cubic feet per second as of 6 a.m.

HIGH WATER HANGS AROUND – A few roads or sections of roadways remained closed in Wise County Monday afternoon due to high water. They include: County Road 4010 between County Roads 4411 and 4511 in Precinct 1; Farm Road 730 north of Boyd, County Road 4668 (Bobo Crossing), and County Road 4757 (Van Meter) in Precinct 3; and County Road 3250 at County Road 3241, Farm Road 3259, and Pecan St. (has water but passable) in Precinct 4. Drivers are reminded to use caution and avoid high water.

BASKETBALL GAMES – The Decatur Lady Eagles return to the court after the Thanksgiving break with a home game at 7:30 tonight against Boswell. In other action, the Alvord boys and girls head to Petrolia. The Boyd boys face Castleberry at home. The Bridgeport Sissies go to Graham. The Bridgeport Bulls travel to Lake Country Christian. The Chico teams head to Slidell. The Decatur boys are in Vernon. The Paradise girls hit the road to Tolar. The Northwest girls take on Saginaw at home. The Northwest Texans travel to Haltom.

TOY RUN – The Wise County Toy Run is Sunday. Registration begins at 10:30 a.m. in the Thompson Street parking lot behind the Decatur Public Library. To ride, entry fee is $10 or a new, unwrapped toy for a 3- to 12-year-old child. The police-escorted 12-mile ride from Decatur to Bridgeport begins at 12:30 p.m. Toy donations may also be made at Circle S gas station, Wise Honda and Cary Bohn State Farm Insurance, all of which are in Decatur. Raffle tickets are available for a v-nose trailer. Cost is $10. Call Ed, 940-683-4742.

HOME RULE INPUT – Bridgeport’s Home Rule Charter Commission would like input from citizens regarding the charter. To submit comments, email tevans@cityofbridgeport.net. For information regarding home rule, visit cityofbridgeport.net/HomeRule. The home rule charter will be presented to the Bridgeport voters in the May 2016 election.

VOTE ON CALENDAR OPTIONS – Northwest ISD requests community feedback on the 2016-2017 school calendar options. Recent changes made to the Texas Education Code will affect the way the school calendar is developed. House Bill 2610, passed by the 84th Legislature, strikes language in the Texas Education Code requiring 180 days of instruction and replaces this with language requiring districts to provide at least 75,600 minutes of instruction. This bill allows districts to add minutes as necessary to compensate for minutes of instruction lost due to school closures caused by inclement weather. Parents, staff and community members can vote on calendar options and provide feedback by going to www.nisdtx.org/calendaroptions now through December 11.

ALZHEIMER’S SUPPORT GROUP – The Alzheimer’s (and related dementia) support group will meet at 7 tonight in the boardroom at the Wise Health System west campus in Decatur. The group is for the people who are caring for folks with dementia. Call Richard, 940-255-0244.

SENIORS BREAKFAST – The Decatur Senior Center, 1200 N. Miller, will serve the seniors of Wise County a pancake breakfast 9-9:30 a.m. Wednesday with Bingo after.

FUNERALS – Services for Nancy Scroggins, 69, of Boyd and Jerry Parnell, 54, of Newark are pending at Christian-Hawkins Funeral Home in Boyd.
MEMORIAL service for Adela Elizabeth Belew, 92, of Decatur is 11 a.m. Wednesday at Coker-Hawkins Funeral Home Chapel in Decatur.
FUNERAL for Wade E. Armstrong, 88, of Bridgeport is 2 p.m. Wednesday at Cottondale Baptist Church with burial at Cottondale Cemetery. Family visitation is 6-8 tonight at Hawkins Funeral Home in Bridgeport.
FUNERAL for W.G. Watson, 78, of Chico is 10:30 a.m. Thursday at Hawkins Chapel with burial at Olive Branch Cemetery. Family visitation is 6-8 p.m. Wednesday at the funeral home.
FUNERAL for Ralph B. Carter, 82, of Chico is 2 p.m. Thursday at Hawkins Chapel with burial at Chico Cemetery. Family visitation is 6-8 p.m. Wednesday at the funeral home.
FUNERAL for Carter Haynie, 27, of Bridgeport is 6 tonight at the First United Methodist Church of Bridgeport. Family visitation is one hour prior to the service at the church. Jones Family Funeral Home in Bridgeport is handling arrangements.

Simple Homeowner Tips to Crush the Clutter Now

• November 30, 2015

Spending more time indoors around the holidays tends to highlight one fact: most of us have too much stuff and no good place to keep it. The problem with clutter is this: it tends to create stress and anxiety. Unorganized spaces also take up a lot of time and money. We spend more time trying to find what we need and cleaning around the clutter. And we spend more money because we either don’t remember what we already have, or don’t think about the consequences of bringing more objects into an already full house. Here are some simple homeowner tips to crush the clutter in your home.

Crush the clutter – First, establish a one in, one out rule. If you bring home a new dress, get rid of an item of clothing you no longer wear. If you buy something knowing you’re going to have to get rid of something you already own, buying the new thing becomes less attractive. If you’re really downsizing, establish this organization homeowner tip to your home. Remember, the goal here is to get rid of what’s weighing you down.

15 Minutes – Give yourself 15 minutes of focused organization time, and don’t stress about taking more time to complete the task. Don’t get overburdened by feeling like you have to keep going or complete many tasks in one day. Pick one drawer, shelf, or basket to go through. Quickly categorize each item into one of three categories: Keep, Recycle/Discard, and Donate or Give Away. Organize items that you are keeping as you put them back into place. Make a homeowner checklist of each room in the house and once all drawers and shelves in the room have been organized, cross it off the list. Don’t try to complete the homeowner checklist all at once. Remember that incremental progress adds up!

Donate or Give Away – When you decide to place something in the “Donate or Give Away” category, start a box or grab a trash bag for those items. Make it a goal to identify one item every day that you can donate to a local shelter, school or charity. Get the kids involved in this homeowner tip too. Have them sort out clothes that no longer fit or toys that they no longer want. Remember to keep an itemized list of donated items on your phone that you can use that for tax deduction purposes in the spring. Think creatively about what you decide to donate. Craft and art supplies, magazines, and scrap fabric can often be used by schools or day care centers for fun art projects. Unused travel size soaps, detergents and personal care products are often welcome at shelters. Old towels are always needed at pet shelters and rescues. Don’t be afraid to call a charity about what they need.

Recycle/Discard – Start with a trash bag and look for items to recycle. Fill it and take it straight to the bin. Then look for other items that need to go. If it’s not useable by someone else and you don’t need it, then into the bag it goes. See how quickly you can fill it. Look for food and medicines that are expired and get rid of them. Remember that a lot of municipalities collect unused medicines and set aside a box for proper disposal. Old or unused cosmetics can go at this point, too.

Do it Now - Once the bag or box marked for donation is full, put it in your trunk and make an effort to drop it off. You’ve worked this hard to get this far. Just finish the job and cross it off your homeowner checklist.

Drawers - Look for places in all of your drawers for ways to organize them. Take the clutter off your nightstand by using dividers to organize remote controls, phone chargers, glasses, books, and beauty products. Use the same method to organize bath vanities with your cosmetics, and in credenzas to store candles. Use utility trays in office drawers to corral batteries, pens, and odds and ends. For best results, bring along measurements of contents and drawer dimensions when you shop. With clothing, fold and roll items like socks, undergarments, and t-shirts and use dividers to keep rows tidy.

Linen closets and reach-in pantries - Custom fit an existing closet with gliding shelves or drawers to keep linens and dry goods accessible and neatly organized. Label the shelves or drawers so items go back where they belong. Choose over-the-door hooks that have multiple tiers to take advantage of the space you have.

Tame the Pet Mess - Pet toys, leashes, brushes, waste bags and small accessories can be stored neatly in a decorative divided lidded basket. If you have a dog, keep the basket in or near an entry closet so it’s handy when you’re ready to go for a walk.

Get the kids involved – Get the kids involved in these organization homeowner tips. Small kids and their older siblings can help keep their toys neat and organized with a system of baskets or bins on shelves or bookcases. Label them with photos or simple drawings so kids can put away like toys when it’s time to clean up. For example, use one bucket for trains, and another bucket for play kitchen pans and food. Use an art storage cart on wheels so kids can keep crayons, paper, play dough and other messy things together. By keeping it portable, you can make sure that they’re used where it’s ok to make messes (like the kitchen) and then stored out of sight when the kids are done.

Control Papers, Mail and Receipts – Use a small rolling file to keep a handle on mail and receipts that you want to keep. Bring the file along when you want to watch TV or if you’re hanging out with the kids while they do homework. The small space available will encourage you to only keep what you need, address the matters that need addressing and get rid of the rest. Recycle newspapers and magazines with you weekly trash collection. Remember that most subscriptions come with online access to articles, so you don’t really need to keep back issues. Take pictures or scan kids drawings or school papers and save them in cloud storage rather than keeping all of the macaroni art and finger paintings from the 18+ years your children are home.

We hope these homeowner tips to de-clutter your home will help you crush the clutter! For a referral to a reliable home organizer, call your MetroTex Realtor for a referral. And be sure to visit the most trusted source for information on buying or selling a home, at www.dfwrealestate.com.

reposted from Metrotex

www.PattiLee.Properties

EMAIL ME