FHA Appraisal Inspections Revisited- Crawlspace and Peeling Paint Under The Spotlight

FHA inspections encompass various items that must be inspected to qualify a home for financing by HUD (Housing and Urban Development).  Two common items I wanted to discuss today are the crawlspace and peeling paint.  For those homes with a crawlspace the home must be inspected for the presence of water that may be collecting beneath the house.  Moisture under the house can cause wood rot as well as the build up of mold and mildew.

While some small amounts of water may be present at various times it cannot collect there and sit for an extended period.  There must be venting to the outside so that small amounts can have a chance to evaporate.  HUD use to require that a vapor barrier (plastic sheet) be present, however in recent years this is no longer required.

I have covered peeling paint in a previous post but found this to be a very popular search topic within my blog so I thought I would touch on this subject again.  I am also providing a link to the HUD website regarding lead based paint.  This will provide the most up to date requirements for the removal of lead based paint.  The EPA (Environmental Protection Agency) has very strict guidelines regarding the removal and disposal of lead based paint.  This is especially true for property owners and landlords who do not live in the property but rent it.  The exact procedures they are required to follow are at the link above.

Owner occupied properties are exempt from the EPA rule regarding the method of removal, although it still must be removed.  They are encouraged to learn about the correct procedures.  Contractors who do this type of work must be certified.  When the lead paint has been removed from non owner occupied units the person removing the paint must provide a copy of their EPA certificate that qualifies them to do this work.  Owners that removed paint from their own home must provide a letter stating that they did the work and an inspection letter that verifies the work was done.  FHA appraisers and inspectors can provide the inspection report, however this report only verifies that the work has been done, not actual compliance with the law.  Have you ever had any experience with required FHA repairs?

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.

 FHA Appraisal Inspections Revisited  Crawlspace and Peeling Paint Under The Spotlight

About Tom Horn

Tom lives in the Birmingham, Alabama area with his wife and two children. He has been appraising residential real estate for over 20 years and holds the SRA designation from the Appraisal Institute. He concentrates in the area of single family, vacant land, 2-4 family, and condominium appraisals.

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  1. Hi Tom,
    Great Video! Very informative and of great value to locals on FHA questions. Thank you for sharing!

  2. Great video, Tom! I had a home in California with a rusty railing just like that. After ignoring it for years, I found a guy to scrape and paint it and he was done in less than a day. Why did I wait so long???

    It’s well worth the time to just fix it and re-paint with a good paint made for covering formerly-rusted metal surfaces.

    • Thanks, Alison. I think you are right, some of these FHA conditions can be fixed quickly, and it’s better to do it before you list your house so it doen’t hold up the closing.

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