With the REOs out there, it isn't unusual to run into home where the
appliances moved out with the former owners. Unfortunately these foreclosure
bargains are also in the price range of many hoping to use FHA loans. There was a
general opinion out there that a stove had to be in the home for it to meet the
minimum standards for FHA. I've run into this some time ago, and found that in
2006 there where changes made and that appliances in general were no longer
required, but only noted if they were there on the new Fannie Mae Uniform Residential Appraisal Report -
Form 1004. 
For those that still don't believe that stoves are NOT required by FHA, here's a
response directly from them.
Thank you for contacting the FHA Resource Center. Below is a summary of
your request and our response.
If this issue is not resolved to your
satisfaction, you may reopen it within the next 2 days.
Thank you for
allowing us to be of service to
you.
Subject
---------------------------------------------------------------
FHA
Loan Questions
Discussion
Thread
---------------------------------------------------------------
Response
(James Talley) - 06/11/2008 04:13 PM
Thank you for contacting the FHA
Resource Center. Please see the following response to your
inquiry.
Must a new or existing home have a stove in order to be
eligible for FHA financing?
Neither a new home nor an existing home has to have a stove in
order to be eligible for FHA financing.
DISCLAIMER: All policy
information contained in this knowledge base article is based upon the
referenced HUD policy document. Any lending or insuring decisions should adhere
to the specific information contained in that underlying policy
document.
For further assistance please contact the FHA Resource Center
at hud@custhelp.com or by calling
1-800-225-5342 (1-800-CALL-FHA).
In addition to this, cosmetic repairs were also changed. This from the
New Appendix D Valuation Protocol
Cosmetic repairs are not required; however, they are to be
considered in the overall condition rating and valuation of the property.
Examples of cosmetic repairs would include surface treatments, beautification or
adornment not required for the preservation of the property. For example,
generally, worn floor finishes or carpeting, holes in window screens, or a small
crack in a windowpane are examples of deferred maintenance that do not rise to
the level of a required repair but must be reported by the appraiser.
Appendix D is found here
For a general idea of plain English guidelines, subject to the
appraisers discretion, this Florida site may give you a better idea of what is
or isn't required for FHA loan qualification.
FHA Checklist at this Website - Found in Menu on Left of Page
Hope this helps to clear up some of the confusion for you and your clients!
If you are interested
in relocating to Las Vegas or would like information on Las Vegas real estate, please email me roberta@search4lasvegashomes.com or call me at
702-354-8988. I look forward to hearing from you!
Hi Roberta! Good info to know and you are definitely a mythbuster! Thanks for sharing and tell Sparky I say "Woof!"
What a saving grace with the FHA guideline reform. They use to pick about everything!
Steve: Always happy to share good information! Sparky "Woofed"back to you!
Craig: Yes, it is good that FHA is a little less picky and it helps to have some guidelines to follow!
Roberta-I heard this, but wassn't sure if it was fact or fiction....thanks for clarifying for us.
Kathy: Always glad to help!
Never was part of their checklist. Some underwriters are more strict than the FHA protocol.
James: This issue has caused a lot of confusion for agents, buyers and lenders. I'm glad we finally have a clear answer.
Does a TX VA Loan require stove?
Hello,
Have the regulations changed in 2010? I am in the process of purchasing a foreclosure and the home does not have appliances. I've heard conflicting information from different lenders. Some require applicances at closing and some do not. Please let me know how I can confirm this and which leders do not require applicance at closing. In case it falls through and I do not close I do not want to be responsible for returning the applicances. Please advise.
On another note...what are your thoughts or experiences using either Quicken, Ditch, or Churill?
Thank you,
Lisa
Lisa, Just from the number of lender hits on this post from across the country and from the big banks, there's still confusion about this issue. HUD/FHA only requires that there be a 'cooking area' in the home, and that 'if' there are any appliances they must be in proper working order. Any available appliance connections must also be in accordance with any local codes. HUD/FHA defers this to local regulations, and their primary requirements are safety of the home, not so much for cosmetics or contents.
Unfortunately there is some grey area here, and it often comes down to opinion or policy of individual appraisers and underwriters, or if there might possibly be local regulations that could require appliances, or areas where they are considered as real property vs. personal property. There can also be some question as to what is considered 'built in' appliances as real property. An under counter dishwasher is most often considered 'built-in', but I've heard of drop-in cook tops that have been called built-in, and some others not.
Again, these are more opinions or policy of individual appraisers and lenders, or possibly local laws, not an 'FHA requirement' as it is often called. You can see that in the response I received, and can feel free to verify it with them yourself with the email link or phone number I provided in the post. For the lenders, that is a policy question to ask them individually. This is why it's always best to shop financing first, rather than finding a home and scrambling to find someone who will fund it or risk loosing it.