Most first-time home buyers seek an FHA-insured loan when purchasing their home. A few weeks ago, I blogged about Understanding FHA Insured Loans in which I mentioned very briefly the minimum property requirements necessary to be approved for the loan.
Below you will find excerpts from HUD Mortgagee Letter 2005-ML-48 regarding repair and inspection requirements, which I hope would be helpful to buyers as they consider potential properties.
“FHA Repair Requirements: Below are examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited …

To correct a common misnomer, the Federal Housing Authority (FHA) does not make loans, it insures loans. This means that lenders are exposed to less risk when approving FHA insured loans for borrowers. For example, if the borrower stops payments on the loan, the lender can file a claim with FHA to recover some or all of the money.
Typically, FHA insured loans are attractive to first-time home buyers. For starters, they help make home ownership more attainable. They require only 3.5% down, of which up to 50% can be gifted …