The FHA's Minimum Property Standards
Homebuyers intending to finance a home purchase with a Federal Housing Administration (FHA) loan may be surprised to learn that they won't be allowed to purchase a particular property because it doesn't meet FHA requirements. Why do these requirements exist, what are they and can they be remedied so that buyers can purchase the homes they want?
Why the FHA Establishes Minimum Property Standards
When a homebuyer gets a mortgage, the property serves as collateral. In other words, if the borrower stops making the mortgage payments, the lender will eventually foreclose on the borrower and take possession of the house. The lender will then sell the house to get back as much of the money it lent as possible.
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