Comment Submitted by Anonymous
AnonymousSupportIndividual
Summary: The commenter, likely a mortgage broker or real estate professional, argues that the current FHA Minimum Property Requirements (MPR) put borrowers at a competitive disadvantage compared to conventional financing. They advocate for removing attic and crawl space inspections due to low benefit and safety risks, and suggest modifying requirements for low-value detached buildings to reduce unnecessary repair costs.
The current FHA requirements put borrowers at a competitive disadvantage to borrowers getting conventional financing as brokers/sellers are aware of, and wish to avoid, the likelihood of required repairs. Additionally, get rid of the attic and crawl space inspection. It provides too little detail to be of significant benefit while putting the appraiser at physical risk. Finally, modify the requirements applying to detached buildings. I often have to require repairs to storage buildings with a value of $1,000 to 2,000 that will cost half of the value to repair. It is an insignificant amount of the total transaction and a pain point for the appraiser, buyer, and seller. I have seen more than one occasion where they decide to tear it down rather than repair even though it had some value as is.