fha appraisal - foreclosure with bare concrete flooring (az)
We have found a foreclosure and are looking to buy using wells fargo FHA loan in Arizona.
As we understand, to approve an FHA loan the property must be appraised to determine if it is safe, sound, secure etc. With all the foreclosures going on we have also read that FHA loans can be secure with 'as is' FHA appraisals which are more relaxed on cosmetic problems. Given all this, we have a couple of questions
1. The home has some bare concrete slabs which, aside from having no carpet, are otherwise perfectly sound.
2. Also, the (3rd) one car garage has been converted into a room.
We have found contradicting info on if bare concrete slab flooring is acceptable for approval of an FHA home under an "as-is" appraisal. Some are adamant that FHA loans need carpets, some say we could paint the slab, others quote housing and urban development guidelines saying these have been relaxed and that flooring is classed as 'cosmetic' in existing buildings and therefore, the lack of flooring will not prevent us from securing the loan.
- So do we need carpets, paint on the floor, or is the bare concrete acceptable?
- The home is listed as an "as-is foreclosure" - does this mean the FHA appraisal will automatically perform an "as is" appraisal?
- Does the conversion of the garage have any other implications on the appraisal given it is all sound and secure aside from exposed slab floor?
Does anyone have any definitive answers (sources would be nice) or experience with these issues?
Thanks for any help!