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FHA New Construction Question

Posted on: 05th Oct, 2008 06:58 am
Does anyone know if FHA new construction insured loans require the lawn and driveway to be completely installed. The concrete pad outside the garage entrance is in place, but the gravel connecting to the road is not yet there, and I'm not sure that in our northern climate grass will germinate yet this year.

Is it necessary for the appraisal and home inspection for an fha loan?
You may want to visit the HUD website and search "minimum property standards". The minimum standards require an all weather surface for the driveway and there must be sufficient ground cover to prevent washout. But keep in mind that these are MINIMUM requirements. While gravel may be acceptable to HUD as a driveway surface, it may not be acceptable to the market and could have negative impact on value.

I hope this helps.
Posted on: 05th Oct, 2008 01:59 pm
Thank you for the information. The home is in a rural area, and the drive is very long, and stone (not gravel-sorry) is typical in this area this type of drive. We will seed the lawn if required and hope the seeds germinate next spring. I hate to waste money, and it will cost about $1500 to seed, and straw the yard.

Again thanks for the input.
Posted on: 06th Oct, 2008 02:50 am
Most builders put the landscaping into the contract. Most lenders accept climate disadvantages and will hold an escrow from the builder with a time line. Same for the driveway, as long as there is some sort of driveway.

Your lender should be able to speak with their underwriter about that and have an answer for you.
Posted on: 06th Oct, 2008 07:51 am
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