Is there any FHA law that specifies a home's age as a criterion when the lender decides whether to accept or refuse the loan?

There is no mention in the FHAloan standards that indicates "a residence built before (insert decade here) is ineligible for an FHA insured loan."


The FHA does outline the requirements that must be followed in relation to the property's condition rather than its exact age. The house must fulfill FHA "minimum property criteria," as well as any applicable federal, state, and local construction codes.


Again, no particular rule, regulation, or guideline stating how old the property can or must be can be found in the FHA loan standards as outlined in HUD 4155.1. Is the house secure? Habitable? Is the age of the house a factor in its resale value?


That final point is critical to remember. FHA lending guidelines are concerned with the "remaining economic life" of the property. If the property has little economic life left, a lender may decline a loan application for the purchase of a property with an FHA-guaranteed mortgage. After all, the borrower should be able to sell the property at an acceptable price based on current market circumstances at any moment throughout the loan's tenure.


The remaining concerns in economic life might be contextual, and standards can vary widely from market to market. Regardless, it's vital to understand that an older property does not necessarily have no worth in the eyes of the FHA or the housing market—and that market does play a role in determining the home's value. It's not safe to assume that an older property you've been eyeing isn't a smart investment for a home loan, but it's preferable to approach older properties with the understanding that there may be age-related concerns that need to be addressed as a condition of loan approval.

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