Congratulations on taking a step towards homeownership! Securing the perfect financing solution is crucial, and FHA, VA, and USDA loans offer attractive options for many homebuyers. However, each program has specific property requirements that must be met for loan approval. This guide explores these key requirements, ensuring you find a dream home that meets both your needs and lender standards.

Common Property Requirements for FHA, VA, and USDA Loans:

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• Accessibility:
  • Attic Access: A functioning access point to the attic is required for inspection purposes. Blocked, locked, or screwed-shut access will necessitate a re-inspection.
  • Crawl Space Access: The homeowner is responsible for ensuring the crawl space is accessible for a thorough inspection.
• Safety:
  • Smoke Detectors: Smoke detectors are essential safety features. Each floor and outside each sleeping area must have a functioning smoke detector.
  • GFI Outlets (Ground Fault Circuit Interrupter): While not always an FHA requirement, most local building codes mandate GFI outlets in bathrooms and near open sinks in kitchens. These outlets help prevent electrical shock hazards.
  • Electrical Safety: Exposed wiring or uncovered junction boxes pose safety risks and will need to be addressed.
  • Broken Windows and Doors: Broken or damaged windows and doors compromise security and weatherproofing. Repairs are necessary before loan approval.
  • Handrails: Open stairwells with three or more steps require sturdy handrails for safety.
• General Condition:
  • Lead Paint: For properties built before 1978, chipped or peeling paint might contain lead, a health hazard. Repairs may involve scraping and repainting with lead-safe materials.
  • Appliances: A functioning stove and refrigerator are essential for everyday living and are typically required for loan approval.
  • Plumbing: Leaking faucets or weak water pressure indicate potential plumbing problems that need attention.
  • Trip Hazards: Uneven walkways, driveways, or poorly installed carpeting can cause tripping hazards and should be addressed.
• Roof: The roof is critical for protecting the home’s interior. Generally, no more than three layers of shingles are allowed, and the remaining roof life should be at least two years, as determined by the appraiser’s visual inspection.
• Well & Septic Systems (Applicable to Properties with Private Water and Sewage): The appraiser will verify the following isolation distances from the well:
  • Property line: minimum 10 feet
  • Septic tank: minimum 50 feet
  • Drain field: minimum 100 feet (reduced to 75 feet if permitted by local authorities)

Additional Requirements for USDA Loans:

• Water Test: A water test is mandatory if the property has a private water source (well).

Additional Requirements for VA Loans:

• Water Test: Similar to USDA loans, VA loans require a water test for properties with private water sources.
• Termite Inspection: A termite inspection is mandatory for all VA-financed properties except for a few designated counties in Northern Michigan. Buyers are typically responsible for the cost of the termite inspection.

Remember: This list provides general guidelines. Specific requirements might vary depending on your loan program, local building codes, and lender policies.

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Here are some helpful tips for navigating property requirements:

• Consult a Mortgage Professional Early: An experienced mortgage lender can explain the specific requirements for your chosen loan program and guide you through the process.
• Qualified Home Inspectors: Ensure your home inspector is FHA, VA, or USDA-approved, depending on the loan type you’re pursuing.
• Ask Questions: Don’t hesitate to ask your lender or realtor any questions you may have regarding property eligibility.

By familiarizing yourself with these property requirements, you can confidently embark on your homeownership journey. At Priority Home Mortgage, we’re dedicated to helping you find the perfect financing solution for your dream home. Contact us today to discuss your options and get pre-approved!