Comment Submitted by Anonymous
AnonymousSupportIndividual
Summary: A real estate professional argues that FHA should relax certain minimum property requirements (MPRs) regarding paint, plaster, and roofs by allowing for post-closing escrow arrangements. The commenter suggests that these changes would help first-time buyers avoid losing their homes due to expensive repairs while allowing FHA to remain competitive with other loan types.
Department of Housing and Urban Development
[Docket No. FR-6609-N-01]
Any requirements about shifting or peeling paint or plaster have always been detrimental to fha buyers. Often you can get plaster patch and a scraper and paint even at cheap Walmart. Duluth Minnesota has mostly hundred year houses that see all 4 seasons so their windows often have this. Or if its al older estate house that got cold at some point the plaster cracks- thats what plaster does when it gets cold- but again cheap walmart fix. Get rid of that or make it something buyers have a list to do post-closing communicated by the lender. But clearly communicate it.
Keep protections for working heating system and water heaters because if a buyer buys an estate we need those to work- its expensive fix for first time buyers. But if seller escrows for 150% of the cost to replace then let it happen post-closing so they dont lose the house.
Septic System in Saint Louis county must pass certificate of compliance ir be addressed in writing as the 100% -150% replacement cost be escrowed for. Again allow escrow for after closing can be paid by seller. Make fha align with this so they don’t lose the house.
Please allow for escrow after closing on roof. Roofs go bad in our climate sometimes 20-40 years. Allow escrow for so they don’t lose the house.
Allow escrow for repairs in general so fha can compete. Even VA has updated practices so update fha also please.
From 20 year real estate professional