FHA Inspection Question-Termite Related

[Josh Boyd]

Hello,

We found evidence of previous termite damage under a house we are renovating.  My goal is to hold the house for myself, but I always prepare a backup strategy.  In this case, flipping the home would be my backup strategy.  To receive max value, we would want a buyer that could get a mortgage...

The house is a 1920's mill home in great shape and in a desirable area. There are no termites under the house and the affected area was already repaired with new support beams. However, there are still a few areas where you can tell that the house had a termite problem years ago. For the house to get an FHA mortgage, do we literally have to remove all evidence that termites had ever been under the home? I hate to rip out areas where the repair isn't needed.

Thank you,

Josh

[Peter Mckernan]

Quote from @Josh Boyd:

Hello,

We found evidence of previous termite damage under a house we are renovating.  My goal is to hold the house for myself, but I always prepare a backup strategy.  In this case, flipping the home would be my backup strategy.  To receive max value, we would want a buyer that could get a mortgage...

The house is a 1920's mill home in great shape and in a desirable area. There are no termites under the house and the affected area was already repaired with new support beams. However, there are still a few areas where you can tell that the house had a termite problem years ago. For the house to get an FHA mortgage, do we literally have to remove all evidence that termites had ever been under the home? I hate to rip out areas where the repair isn't needed.

Thank you,

Josh

The termite damage/termite clearance is not required in FHA as it used to be, and as Bill mentioned they do ask items to be fixed like peeling paint IF the appraiser calls it out. Your biggest concern is what the contract states and what/if the appraiser calls anything out on it.