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September 14th changes are coming to FHA this video is going to outline some changes and how they are going to affect the lending and appraisal process so what's the difference between an FHA and a conventional loan FHA loans generally have a lower down payment requirement the property must meet minimum property requirements in order to qualify for an FHA loan starting September 14th the HUD handbook 41 50.2 and D — 33 are being replaced by a HUD handbook 4000 point 1 the appraisal report and data delivery guide are an extension of the HUD handbook 4000 point 1 and provides specific details on how the appraisal report should be written and delivered to the client FHA loans are an alternative to conventional financing with lower down payments lower qualification requirements and offering senior reverse mortgage options the adoption of the HUD handbook 4000 point 1 focuses primarily on the appraiser observing analyzing and reporting accurately the conditions that exist with the property at the time of the appraisal FHA has minimum property requirements that primarily focus on health and safety of the property FHA appraisals have always required an attic inspection HUD handbook 4000 point 1 has clarified that the Attic inspection must include all visible sections of all attic areas with at a minimum a head and shoulders inspection if an attic inspection is not available the appraiser must contact the lender and reschedule a time when the inspection can be made or have a qualified third party make the attic inspection access must also be made available to the crawlspace with a complete inspection made of all visible areas of the crawlspace inspection is intended to make sure that there is adequate ventilation that access is available to mechanical systems below the floor homes built prior to 1976 have the possibility of lead-based paint any flaking or peeling paint on a home built prior to 1976 must be scraped and repainted this applies to all structures found on the property homes with wood to earth contact must be corrected so that there is an adequate space between the finished wood and the finished grade of the house to eliminate dry rot termite infestation and other deterioration homes must have positive drainage away from the home in order to prevent water from pooling or collecting along the base of the house the appraiser is required to inspect all areas of the roof and report any damage or deterioration and require that repairs be made or that a certification that the roof will have a remaining life of at least three years the appraiser is required to inspect all electrical and plumbing systems and verify that there are no unsafe characteristics with these systems all bedroom areas must have adequate secondary egress with the window height of no more than forty-four inches from the finished floor one of the new requirements outlined in the new HUD handbook is that all appliances conveyed with the sale of the property are to be verified as...
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