November 19, 2012
A reader asks, “I have an appraisal prepared by FHA approved appraiser. This is a short sale and appraiser has made comment that carpet in master bedroom has been removed and has bare concrete floors.”
“Yet does not pose a health hazard. She has done the appraisal “As Is” but stated floor covering is required. Question is does FHA accept the floor to be painted with a sealer. Borrower does not want to put carpet in until the property is in their name. Seller will not do anything as it is a short sale. Thanks.”
FHA mortgagee letters have in the past indicated that “exposed sub-flooring” or missing carpet can be grounds for issuing a correction. In this question the reader states that the missing carpet does not pose a health hazard, but in previous FHA mortgagee letters, the official position from the FHA was that missing carpet could be considered a hazard and must therefore be corrected.
But borrowers should know that even in cases where a home technically passes VA MPRs, local building code may require further action.
FHA minimum property requirements do not override local or state building codes–they are meant to show what the FHA is willing to guarantee a loan for in terms of the condition of the property. They do not replace state or local ordinances.
Borrowers with specific questions on FHA MPRs should contact the FHA directly at 1-800 CALL FHA for more information. Consult your local code authority for information on local requirements that might apply above and beyond FHA MPRs.
Do you have a question about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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