The Complete Investor & Homeowner Guide to Selling 100+ Year-Old Homes to FHA, VA, and USDA Buyers

🏡 Why This Guide Matters

If you’re remodeling or selling a home that’s over 100 years old, congratulations — you own a piece of history. But when your buyer plans to use FHA, VA, or USDA financing, your beautifully restored property can hit unexpected roadblocks. These loan programs follow strict property standards to ensure homes are safe, sound, and sanitary. Even minor issues like peeling paint or missing handrails can delay or derail a sale.

This guide breaks down what investors, homeowners, and flippers need to know before listing — with checklists, visuals, and practical tips to help your property sail through appraisal and closing.

1. Understanding FHA, VA & USDA Standards

Each program has slightly different rules, but they all share the same foundation:

✅ FHA: Follows HUD Handbook 4000.1 “Minimum Property Requirements.”
✅ VA: Focuses on veteran safety and soundness.
✅ USDA: Mirrors FHA standards but only applies in rural eligible zones.

💡 Tip: None of these loans require modern code compliance — they simply want the home to be safe, sanitary, and livable.

2. Permit Expectations in North Carolina (Davidson County & Thomasville)

If the remodel involved electrical, plumbing, structural, or HVAC changes, a building permit is required under Davidson County’s building codes — even if the owner did the work themselves.

Examples of work that requires a permit:

• Adding or relocating walls, beams, or major framing (structural)

• Upgrading electrical panels or wiring

• Replacing or rerouting plumbing lines

• Installing or replacing HVAC systems

Work that typically doesn’t require permits:

• Painting, flooring, cabinets, fixtures, or cosmetic repairs

🧾 Both licensed professionals and homeowners must pull permits for structural, electrical, or mechanical work. If an unpermitted project is discovered, the lender may halt the loan until the county inspects and retroactively approves it.

3. Lead-Based Paint: The #1 FHA/VA/USDA Violation

Any home built before 1978 is presumed to contain lead-based paint. Appraisers are required to flag any peeling, cracking, or flaking paint inside or outside.

How to fix it:

1. Safely scrape and repaint peeling areas using lead-safe practices (EPA RRP guidelines).

2. Collect and dispose of paint chips properly.

3. Provide the buyer with the EPA “Protect Your Family from Lead in Your Home” pamphlet.

📸 Visual checklist:

• ❌ Peeling window trim — scrape, prime, and repaint.

• ✅ Freshly painted trim, no exposed wood.

• ✅ Ground cleared of paint chips.

4. Electrical: Vintage Doesn’t Mean Unsafe

Older homes often feature knob-and-tube wiring or small service panels. These aren’t automatic dealbreakers, but visible hazards will trigger repair requirements.

Check for:

• Exposed or frayed wires ❌

• Missing outlet/switch plates ❌

• No GFCIs in kitchens, baths, or exterior areas ⚠️

• Flickering lights or tripped breakers ⚠️

Solutions:

• Install inexpensive GFCI outlets where required.

• Add missing faceplates.

• Have a licensed electrician repair or replace unsafe wiring.

🧾 Documentation Tip: Keep receipts and inspection reports to provide to the appraiser or lender.

5. Structural & Moisture Concerns

Inspect the foundation, crawl space, and exterior for:

💡 Tip: Appraisers don’t expect perfection — they just need to confirm the structure is stable and safe.

6. Roof, Windows & Exterior

A roof doesn’t have to be new, but it must have at least 2–3 years of remaining life.

Checklist:

• ⚠️ Missing shingles or visible leaks? Fix before appraisal.

• ✅ Gutters clear and downspouts extended.

• ⚠️ Rotting fascia or soffit? Replace and repaint.

• ✅ Windows open, close, and lock properly.

• ⚠️ Cracked glass or missing glazing? Replace.

📊 Visual Summary:
Roof Condition Flowchart:

7. Plumbing, Heating & Septic

All utilities must be functional and safe:

• ✅ Hot and cold water at all faucets.

• ✅ No active leaks or rusted pipes.

• ✅ Functioning toilets, tubs, and sinks.

• ✅ Working HVAC system capable of heating home to 68°F.

If you’re on a private well or septic:

• Provide recent water test results (showing potable water).

• Provide septic inspection report verifying it’s operational.

8. VA & USDA Loan-Specific Requirements

VA Loans:

• Require all-weather access (paved or gravel driveway).

• Will not approve a home with active termites, mold, or lead hazards.

• Heating source must be permanent — space heaters aren’t acceptable.

USDA Loans:

• Property must be located in a rural-eligible area.

• Home must be modestly designed and meet FHA standards.

• USDA often requires a well/septic certification if private systems exist.

9. Inspection & Appraisal Prep Checklist

10. Documentation Packet for Lenders

Create a PDF folder titled Property_Condition_[Address].pdf containing:

• Before/after photos of repairs

• Receipts, invoices, or permits

• Water and septic test results

• Roof age and warranty (if known)

• EPA Lead-Safe certification (if applicable)

This proactive step builds buyer confidence and speeds up underwriting.

11. Cost Breakdown: Typical Appraisal Triggers & Fixes

12. Balancing Preservation & Compliance

Don’t lose your historic charm just to meet minimum standards. Appraisers love to see originality — they just can’t ignore hazards.

✅ Keep original doors, trim, and windows — just make them functional and safe.
✅ Preserve character features like tile, mantels, and woodwork.
❌ Avoid unpermitted structural changes to “modernize” — they can backfire.

Decision Tree:

13. Final Word

Selling a century-old home to an FHA, VA, or USDA buyer isn’t impossible — it just requires preparation and documentation. By proactively addressing safety issues, keeping your paperwork organized, and understanding how appraisers think, you can protect your profits and your timeline.

💬 Pro Tip: Ask your lender or agent to order a pre-listing appraisal walkthrough. This small investment can save weeks of repair delays and prevent failed closings.

📞 Ready to Talk Strategy?

I specialize in helping investors and homeowners navigate the unique challenges of selling historic homes in North Carolina’s Triad and Triangle regions. Let’s ensure your remodel meets every standard without losing its soul.

📅 Schedule your free consultation
📲 Text or Call: (336) 567‑5843
🏢 Brokered by Real Broker, LLC — NCREL#312309