How Old Is the Home You Want to Buy With an FHA Mortgage?
That is not true. Another is that a home must be of a certain age to qualify. This myth isn’t as widespread as the first-time homebuyer one, but it’s not true with only a couple of exceptions.
How Old Can a Home Be and Still Qualify for an FHA Mortgage?
In most cases, there is no age restriction on properties purchased with an FHA mortgage. One exception? Manufactured homes. FHA-eligible mobile homes, modular homes, and manufactured housing must be built after June 15, 1976.
There is no similar requirement for existing construction properties under the FHA single-family home loan program.
When the Age of the Home Matters Most
The FHA lender’s handbook specifies that all houses purchased with an FHA mortgage must have a “remaining economic life” that lasts the full term of the mortgage.
That means the home must be in saleable condition, able to last the full term of the loan, and still be a viable property to be sold when the home is paid off, should the owner choose to do so.
In such cases, it’s not the age of the home per se but rather the property's condition regardless of age.
A Borrower Concern
What should borrowers be worried about when looking at older homes? The age and condition of the roof is key. How many years remain on the current roof, and how long before you have to invest a sizable chunk of money to replace or repair it?
Some consumers report being required by their home insurers to replace the roof at 20 years, no matter what the actual lifespan of the roof might be.
Others might not have to replace or fix the roof for decades. But there’s no one-size-fits-all scenario for this. Borrowers must have the roof inspected and make their choices based on the results.
Older homes are not necessarily a deal-breaker when it comes to being approved for an FHA mortgage, but you need more information about the home and its systems (in good repair, in bad repair, etc.) before you can make a truly informed choice about making an offer.
Sometimes It Pays to Refinance
Don't Forget Your Closing Checklist
Your Home Loan is Called a Mortgage
Do you know what's on your credit report?
Learn what your score means.