December 10, 2015
A reader got in touch with us recently to ask whether a home with window-mounted air conditioning units could pass an FHA appraisal.
Unfortunately the answer to this question isn’t as simple as a yes or no–there are several factors involved that may determine how an FHA appraiser views such units.
The first and most obvious would be the condition of the units themselves. FHA appraisal rules require all mechanical systems in the home to be in good working order or be brought into compliance with that requirement through repair or replacement.
The appraiser’s job would be to determine whether or not the general state of the window units–where permitted–is acceptable.
But there are a few other unanswered questions–do these window units act as a replacement for a faulty or inoperative central air system?
If so, it is entirely possible that the appraiser would require the central air system to be repaired and be in good working order as a condition of loan approval.
And furthermore, state and local building code may have a say in what is acceptable in a local area.
If state code required, for example, that all housing be equipped with a central heating and air conditioning unit, window units would not be acceptable as the sole source of heat or air conditioning.
FHA loan rules never override state or local building code–borrowers should know this going into the home loan process. Just because FHA minimum property requirements might permit a certain condition or set of conditions in the home does not mean that state or local law won’t have a say in the matter.
When in doubt in these cases, you can always ask a the real estate agent, a locally based home inspector or other authority who may know what kind of precedent has been set in the past with a given condition of the home.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today:
http://www.fha.com/fha_loan_limits_widget
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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