Originally Posted by jkski
So, I finally have a buyer lined up for my old house and while I knew I would have to do some items, like a new electrical panel (mine was a Federal Pacific which they frown upon), I was surprised by what the FHA appraiser wants done.
For starters, I should mention that the buyer had a home inspection done and the electrical items the guy pointed out were the box and that a couple of GFI outlets needed to be added, otherwise all good. So, the FHA appraiser comes in and he says that all wiring in the basement must be run thru the floor joists or in conduit and it can not be stapled to the sill plate or the side of any floor joist. Now, I understand not having a wire tacked to the underside of a joist, but to run alongside a joist and tacked up 5 inches or so from the bottom, I thought that was fine. So, I had 2 different licensed electricians come thru and they took a look at my wiring and said it was code however the FHA appraiser informs me that while it may be fine for conventional it is not OK for FHA. So, everything is going into conduit but I wanted to see if any of you guys have ever run into this or if this appraiser has some bad info.
Thanks in advance.
I work in Mortgage field services as a contractor for banks directly so I am pretty accustomed to having this issue. FHA loans are completely different from Conventional loans. And they come with a different set of rules. Its kind of what you get for allowing the government to assist on first time home buyer credit and other things. But your loan ... albeit may be deep entrenched and in fine print, will clearly state that your home must pass all current regulations for safety. They consider electrical to be a safety issue. So if you are going to sell your home it has to comply with current codes. Even if what was performed was done correct at the time.
I can also tell you that it is better fire protection to run your wires in pipe, through the floor joists. Not stapled or romex wire run like extension cords all over the place. Yes I know not all states require conduit, but FHA requires you comply with all new regs.
My advice is no never accept any government assisted loan. Even for first time home buyer credit of $8k. Because they will make you spend that savings later ... EVERY SINGLE TIME. Its their job to make sure that the home they finance is of the highest quality and most current standards so if you default then they have a more valuable and safe home to resell.
It sucks, FHA sucks. Even though I make my living off of doing these repairs to FHA homes in default.
As a note: Romex is not allowed in any homes in my area. Exposed or not. It is a violation is any manner.
When I was a child, I used to talk as a child, think as a child, reason as a child; when I became a man, I put aside childish things.
1 Corinthians Chapter 13 - 11