The Secret to Making Sweat Equity Work for You! FHA loans and Freddie Mac HomePossible®…
Many people ask us what types of heat sources are okay for homes where the borrower is using FHA to finance the property. Here’s the information – and by the way, USDA (Rural Housing) uses FHA rules listed below as their heat source guidelines too.
- All habitable rooms must have a heat source.
- Certain areas of the country do not require a heat source if normal for the area (i.e., Hawaii, certain counties in Florida).
Wood Stoves & Solar Systems
- Acceptable with certification that they were installed according to manufacturer’s recommendations.
- Must ALSO have a conventional heat source in all living areas.
- Must also have a heat source to maintain 50 degrees F in rooms where plumbing is located. (Example: electric baseboard heat in bathroom, kitchen and basement/crawl space where plumbing pipes are located.)
- Must be located a safe distance from the home.
- Must have ownership of propane tank UNLESS only leased tanks are available and normal for the area.
- Propane furnaces located in crawl space or basement is not acceptable.
- If needs repairs or insufficient heat source for home, will require upgrade to conventional heat system.
Non-conventional Heating Systems
- Space heaters or non-conventional heat sources must comply with local codes.
- If does not comply, conventional heating system must be installed.
source: Mortgage Currentcy