FHA, Termites, and Dry Rot, Oh My!

Good news is that FHA limits were raised for Tucson, and that sort of loan only needs 3% down, which means it is becoming more popular among local home buyers.

Bad news is that FHA has more strict requirements than conventional financing for the condition of the home.

For example: we have Termites in Tucson.  I’d say 75% of every house more than 30 years old will show some signs of current or previous termite infestation, or will have a bit of dry rot.

FHA requires that termite damage be repaired. 

Now, most people, if the termite damage is minimal, sort of cosmetic, they’ll have the property treated and won’t go back and fix all signs of infestation. 

If someone is buying a home with an FHA loan, they’re going to require that the signs of termites are fixed, which may mean filling, sanding, and repainting some wood, or replacing damaged fascia (dry rot there too).  Hopefully, it’s not too big of a job. 

So if you’re selling your home right now, and it’s priced under FHA limits ($316k or less), I highly recommend you get a termite inspection NOW.  If the inspector notes anything on the report, go ahead and fix it while you have the luxury of time.

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Equal Housing Opportunity Realtor
Applied Real Estate Technology