January 3, 2024
FHA home loans come with a myth or two. For example, the notion that only first-time home buyers can get an FHA loan.
That is a myth. Also NOT TRUE? The idea that a house can’t be past a certain age to qualify. This myth isn’t as widespread as the first-time home buyer one, but the fact is, only SOME property types have a specific age requirement
Manufactured homes have a specific age requirement other FHA loans don’t carry. An FHA-eligible mobile home or manufactured housing must be built after June 15, 1976 or it cannot be purchased with an FHA mortgage.
Existing construction properties under the FHA single-family home loan program don’t have that age issue.
Age or Remaining Life?
The FHA lender’s handbook specifies that all houses purchased with an FHA mortgage must have a “remaining economic life” that lasts the full term of the loan.
To qualify for an FHA loan the home must be in or repairs to bring it into saleable condition. What does this mean? The house must able to last the full term of the loan, with the ability to be sold when the home is paid off, if that’s what the owner wants to do.
In such cases, the property’s condition is key. Age is secondary.
Roof Condition: An Important Borrower Concern
If you want to buy an older home, there are important factors to keep in mind. One is the physical age and the condition of the roof. How many years does the current roof have before it needs to be replaced?
Some homeowners say they were required by their home insurance company to replace the roof at 20 years, no matter what the actual lifespan of the roof might be.
Some may be told they risk losing their insurance coverage or increasing the cost if the roof isn’t replaced by a certain time.
Others might not have to replace or fix the roof for decades. But there’s no one-size-fits-all scenario for this. Borrowers should pay to have the roof inspected before making a final decision to make an offer.
The age of the house is not necessarily a deal-breaker. Older homes can be approved for an FHA mortgage but must pass the appraisal process.
You will need more information about the home and its systems to make the most informed choice about the property.
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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