New FHA changes that were effective in October 2015.

1. If a home is on multiple parcels, only the parcel the home sits on will be included in the appraisal. The excess land will not be counted toward the final value of the property!

2. Roof must have 2+ years of life left. Appraiser must note type of roof and if any deficiencies exist.

3. Non residential square footage (not under heat and air) can not exceed 49% of the total square footage!

4. Appraisers must report repairs necessary to meet FHA on their report as well as any adverse conditions, and then it is up to the lender to determine which repairs will be required. That puts the marketability of the property somewhat on the lenders shoulders.

5. Septic systems/ Water well - Inspections will be required for both.  If a property has septic but sewer is available it is up to the lender to determine if connecting to the sewer will be feasible. ( So- buyer or seller may be required to connect to sewer even if septic is ok)

These are some big changes! Just want you to be informed!

Have a Great Week!