If you’re looking to buy a home using an FHA (Federal Housing Administration) loan, you may have concerns about certain property conditions. One major issue that could impact FHA approval is the presence of asbestos roof shingles. Many older homes still have asbestos-containing materials, and buyers often ask: “Can I get FHA on a house with asbestos roof shingles?”
The short answer is: It depends on the condition of the roof and whether the asbestos poses a health or safety risk. FHA loans have strict property standards to ensure homes are safe, secure, and structurally sound. In this guide, we’ll explore how asbestos roofing affects FHA loan eligibility, what you can do if the home has asbestos shingles, and potential solutions for buyers and sellers.
Read too: Hail Damage Roof Repair: Essential Guide to Restoring Your Home’s Protection
What Are Asbestos Roof Shingles?
Before diving into FHA requirements, it’s important to understand what asbestos roof shingles are and why they matter.
Why Were Asbestos Roof Shingles Used?
Asbestos was widely used in roofing materials from the early 1900s to the 1980s because it was:
- Durable – Resistant to fire, heat, and weather damage.
- Affordable – Cheaper than many other roofing materials.
- Long-lasting – Could last for decades without needing replacement.
Why Is Asbestos a Concern?
- Health risks – When asbestos-containing materials deteriorate, they release tiny fibers that can cause lung diseases like asbestosis, mesothelioma, and lung cancer.
- Environmental hazards – Improper removal or disturbance of asbestos can contaminate the air and surrounding property.
- Regulatory restrictions – Federal, state, and local laws regulate asbestos handling and removal.
Many homes still have asbestos shingles, and while intact shingles may not be hazardous, FHA has strict guidelines on homes with potential safety risks.
Can I Get FHA on a House With Asbestos Roof Shingles?
The FHA loan program is designed to help buyers purchase safe and livable homes. Because asbestos can pose a risk, FHA appraisers carefully evaluate homes with asbestos-containing materials.
1. FHA Guidelines on Asbestos Roofing
FHA does not automatically disqualify a home for having asbestos shingles. However, approval depends on:
- The condition of the asbestos shingles – If they are intact and in good shape, FHA may approve the loan.
- Whether the roof is deteriorating or damaged – If shingles are cracked, crumbling, or exposing asbestos fibers, FHA will likely require repairs or replacement.
- The presence of a health hazard – If an FHA appraiser or inspector determines that asbestos is a safety issue, repairs or professional testing may be needed.
2. FHA Appraisal and Inspection Process
During the FHA loan process, the home must go through an FHA appraisal, which includes an inspection of the roof. The appraiser will check:
- Roof integrity – Are there missing, curling, or broken shingles?
- Leaks or structural issues – Is the roof protecting the home adequately?
- Potential asbestos exposure – Could the asbestos pose a health risk?
If the appraiser flags asbestos as a potential issue, further evaluation by a licensed asbestos professional may be required.
3. Possible FHA Loan Outcomes for a House With Asbestos Roof Shingles
Depending on the appraisal and inspection, FHA may:
✅ Approve the loan with no conditions – If the asbestos shingles are in good shape and pose no risk.
⚠️ Approve the loan with conditions – The lender may require minor repairs or an asbestos inspection.
❌ Deny the loan – If the asbestos roof is deteriorating and poses a health hazard, FHA will likely reject the loan unless repairs are made.
What If the FHA Appraisal Flags the Asbestos Roof as a Problem?
If the home’s asbestos roof shingles prevent FHA approval, you have several options:
1. Request a Roof Repair or Replacement
- Buyers can negotiate with the seller to replace or repair the roof before closing.
- Some sellers may be willing to reduce the sale price to cover repair costs.
- If a full replacement is needed, expect costs between $5,000 and $15,000, depending on the home’s size and location.
2. Use an FHA 203(k) Loan for Renovation
FHA offers 203(k) loans, which allow buyers to finance both the home purchase and necessary repairs. This can be useful if:
- The asbestos roof needs to be replaced.
- Other repairs are required to meet FHA standards.
3. Get an Asbestos Inspection and Clearance
- If the appraiser is uncertain about asbestos risks, a professional asbestos inspection can determine whether the shingles are hazardous.
- If the inspector certifies that the shingles do not pose a health risk, the FHA lender may approve the loan.
4. Consider Other Loan Options
If FHA denies the loan, buyers might consider:
- Conventional loans – Some conventional lenders may accept homes with asbestos shingles.
- VA or USDA loans – These also have strict property requirements but may approve homes with intact asbestos.
Tips for Buyers and Sellers of Homes With Asbestos Roof Shingles
For Buyers
- Check local asbestos laws – Some states have strict regulations on asbestos removal and disposal.
- Hire a home inspector – A professional inspection can identify any asbestos risks before making an offer.
- Budget for potential repairs – If FHA requires roof replacement, make sure you can cover the costs or negotiate with the seller.
For Sellers
- Disclose asbestos issues upfront – Be transparent about the presence of asbestos to avoid loan delays.
- Repair or replace the roof before listing – This can make the home eligible for more buyers, including FHA borrowers.
- Offer seller concessions – If the roof is flagged as an issue, consider offering a credit or price reduction for repairs.
Frequently Asked Questions (FAQs)
1. Will FHA automatically reject a house with asbestos shingles?
No, but FHA will assess the condition of the roof. If the asbestos is intact and not hazardous, the loan may still be approved.
2. Can I remove asbestos roof shingles myself?
It depends on local laws. Some states require licensed professionals to remove asbestos due to health risks. DIY removal can be dangerous and may expose you to fines.
3. Does homeowners insurance cover asbestos roof replacement?
Most policies do not cover asbestos removal unless the roof is damaged by a covered peril (like a storm).
4. What if I want to refinance an FHA loan on a house with asbestos shingles?
If the roof is intact, refinancing should not be a problem. However, if the roof is deteriorating, FHA may require repairs before approval.
Conclusion
So, can you get FHA on a house with asbestos roof shingles? The answer depends on the condition of the roof and whether the asbestos poses a health risk. FHA will not automatically reject a home with asbestos shingles, but if they are damaged or deteriorating, repairs may be required.
If you’re buying a home with asbestos shingles, work with an FHA-approved lender, consider an asbestos inspection, and explore options like seller negotiations or an FHA 203(k) loan. By understanding FHA rules and taking the right steps, you can navigate the loan process successfully.
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