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HUD releases new guidelines to FHA financing

As of September 14th, 2015 – HUD is releasing some new guidelines that relate to FHA financing that could impact the lending and appraisal process.  While the majority of these changes will affect lenders and appraisers, there are a number of things that REALTORS® showing homes to FHA buyers will want to be aware of.

An example of the changes include:

Overhead power lines now depend on property location within the easement areas or outside the easement areas. “Within” the property will generally mean that the property will not be insurable by FHA unless the power lines are certified by a utility company or local regulatory agency that the property conforms to local standards and is safe.  Distribution lines cannot pass directly over a dwelling or any structure or pool.  Service drop lines may not pass over any water feature (pools, spas).

Non-permitted additions to homes will be allowed if they are in workman-like condition, and be common for the market area, but will still be subject to investor overlays.

If a swimming pool is not in working order (no water in it) it will have no value. It must still meet local codes, be covered to be safe and be secured.

You can read more about these changes here, (or check with your lending partners):

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1

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