Preparing Your Home for FHA Financing
When listing your home for sale, the most important consideration is how to get the most attention from potential buyers. It’s simple, the more buyers interested in your home the better. You have already considered how to build curb appeal and staging the home for marketing and home visits, but have you prepared your home for buyers who may wish to use FHA financing?
Often, first time homebuyers take advantage of the great benefits of FHA financing, such as lower down payment requirements and easier qualifying. But it’s not just the borrower that has to qualify for FHA financing, the home does also. In order to appraise for FHA financing, the home must be livable and safe. A special appraiser will not only ensure the purchase price is comparable to other properties, but also verify the condition of the home.
Here are some key aspects:
· Safety and Security – There must not be any hazards in the home. Everything from faulty wiring to loose carpet can be considered a safety issue.
· Structural Integrity – The inspector will look for cracks in the walls or sags in the floor that could indicate an issue.
· Health and Sanitation – All systems must be in good working order, such as: plumbing, heating, cooling, etc.
· Water and Sewer Systems – The home must have safe drinking water and the sewer and waste systems must be clear from any blockage or malfunctions.
· Pests – FHA financing will include a clear pest inspection. This means a termite inspection as well as being free from rodents and other damaging pests.
As a seller, knowing what kinds of issues could disqualify an FHA loan makes your home attractive to a larger selection of potential buyers. Ensure these issues are corrected before listing which allows you to list as an FHA property