Thursday, January 19, 2006

Improved FHA standards

The Federal Housing Administration's (FHA) decision to eliminate various rules regarding property conditions and repairs may be a stimulus for the housing market. Under the new standards announced December 19, 2005, minor defects no longer will have to be repaired before the mortgage closing. More serious defects such as structural problems, foundation damage, roofing and electrical hazards will continue to be subject to a mandatory repair rule.

Also, termite, septic system, and well inspection standards have been greatly relaxed.

The rule changes should get the attention of buyers and sellers in the moderate-cost segments of the real estate market.

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