Does FHA require the seller to make repairs from the appraisal?

Posted on Aug 4, 2012 in FHA Information

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Question by C o n f u c i a n: How does a refinancing loan work on an FHA mortgage?
I have an FHA loan for $ 25, viagra sale illness 000……House is worth much more, link hospital especially after the repairs we did. House sold at least 3 different times between 1995 and 2006 for approximately $ 100, ambulance 000.

I am guessing it is at least appraised for $ 65,000 right now….

I still have 29 years left on the mortgage. How does refinancing work (what kind of loan would I get in $ terms), and what do I need to get approved?

Best answer:

Answer by loanmasterone
The equity you might have accumulated in the property would depend on if you are able to apply for and be approved for a refinance on your home.

Primarily you would go through the same process as you did when you first purchased your home. You would have to find a FHA mortgage lender and apply for a refinance of your property through.

You might inquire of this FHA mortgage lender about the FHA streamline refinance program. You would still get your refinance, however, there is less paperwork and perhaps an appraisal report might not be required.

Normally on a refinance you would able to refinance for a maximum of 80% of the appraised value of the property. If you think the property would be valued at $ 65,000 then 80% would be approximately $ 52,000. After paying off your current mortgage you would see approximately $ 27,000 in your hand minus points and fees that would be charged for the mortgage loan refinance.

There might be a provision that would not allow you to cash out for more than you paid for the house a year ago. You might be able to pay off any consumer or credit card through this refinance or you might be able to purchase a large ticket item for you house.

Ask the mortgage loan officer for cash out requirements that might apply for your refinance and see if there are any restrictions.

I hope this has been of some benefit to you, good luck.


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Question by Lilo Silver: Does FHA require the seller to make repairs from the appraisal?
I just had an FHA appraisal that noted two items that needed to be remedied.
1. Install a cook top
2. Fix dented siding (there may have been some dry rot)

I am under the impression that the seller is required to make these repairs at their expense. In other words, medical the seller is not allowed to accept an FHA loan without these type of items being fixed. Am I misinformed?

Best answer:

Answer by Mike
Not exactly, The seller doesnt have to make any repairs if he doesnt want to. Its not that the seller cannot except your FHA loan, the FHA loan will not let you buy that house if the repairs are not made.

Know better? Leave your own answer in the comments!

5avg.rating 28 votes.


  1. Deal cannot close when there is an inspection contingency. Seller doesn’t have to make any repairs whatsoever. Buyer can back out of the deal if seller refuses to make repairs.

  2. An appraisal is not a home inspection and appraisers are licensed to VALUE property, they are not qualified nor licensed for home inspections.

    Seller is NEVER required to make repairs for ANY loan.

    As a former FHA underwriter, I can tell you this:

    A cook top is necessary if there is no freestanding stove, because there is probably an open area…that is a safety issue with wires that are not attached to an appliance.

    Dented siding is NOT a required repair…that is COSMETIC…the comment that the appraiser made about the dry rot is an ASSumption and he/she has no evidence that dry rot existed…siding gets dented all the time from accidents around the home, animals, lawn equipment, etc.

    So yes, you are misinformed.

    PS: Home Inspections for FHA loans are not even required…a huge myth that exists is that they are.

    My advice is to read your contract, chances are the seller never accepted your inspection contingency that is blanket..which means, that if there is so much as a screw loose that you have the right to back out. There is usually a dollar amount listed because no home inspection comes back 100% perfect even for brand new construction.

  3. Great article and post about mortgages.

  4. Excellent work with the article on finance.