Description

Episode 061 - FHA Well Setbacks and Other Tall Tales

FHA minimum property standards can be tedious, annoying, confusing, and wrong. Wait? FHA has it wrong? It’s not that they have it wrong, it is that they know they don’t know everything, so they rely on the appraiser to discover certain elements and verify with local authorities on those issues.

One of those issues lately has been well distances. That rule is so misunderstood and misquoted. Brian helps to set the record straight and maybe it will help you on your next deal.

SHOW NOTES

• 00:48 – Something is in the air with well heads.
• 01:40 – FHA and VA: MPRs (minimum property requirements). FHA 4000.1 handbook. Relatively similar.
• 02:45 – Some rules from FHA and VA are requirements that cannot be ignored. Lead paint is an example. Mechanical systems must be operable.
• 03:45 – Some requirements have some flexibility. FHA rules on a well head placement.
• 04:25 – FHA says the well head must meet three distance requirements: 10’ from property line, 50’ from septic tank, and 100’ from leach field/finger system.
• 05:35 – Are those requirements really a requirement? Local code supersedes FHA rules.
• 06:55 – Look for a permit as that will wash FHA’s hand clean of this issue and FHA will allow the setback requirement to be less.
• 07:15 – Handrails issue with a drop from the deck to the ground is 18” or less. Local code supersedes FHA and FHA will bend.
• 08:00 – The reason for this is that FHA rules are in effect for all 50 states in those cases where there is not a local code that address these issues. If there is not a code or requirements locally, then FHA’s rule is in effect.
• 09:23 – Agents or the appraiser can call the Atlanta Home Center or the VA Cleveland office to verify this information.

SHOW LINKS

• MPRs, Minimum Property Requirements – https://www.investopedia.com/articles/mortgages-real-estate/11/fha-minimum-property-standards.asp
• FHA Handbook 4000.1 – https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh_Update9.pdf
• FHA well setback requirements – https://www.ovmfinancial.com/well-and-septic/
• FHA Atlanta Home Center – https://www.hud.gov/states/georgia/working/atlantaoffice
• VA Cleveland Office – https://www.benefits.va.gov/cleveland/

BETWEEN THE LINES LINKS

Email

brian@brianclee.com

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