Questions about inspections and FHA???

Question

We have been told we were preapproved for a FHA loan. But the house we choose would have to pass inspection. Who does/orders the inspection and who pays for it?

Answer 1

To get an FHA loan, the house has to pass an appraisal.  If you are getting some kind of grant money for the down payment or closing costs, that organization might be requiring an inspection.  Also, if the appraiser already looked at the house, he (or she) might have seen something wrong with the roof or foundation or something else that led them to ask for it to be inspected - then, you would need to get it done, or no loan.

Any way you look at it, you should get an inspection.  Besides, in an FHA deal, if money is a problem, you can finance the cost of the inspection.

Answer 2

The buyer orders the inspection and usually pays for it.  I recommend you ask for recommendations on a good home inspector independent of your Realtor, if you have one.  You want someone who is not under any pressure, implied or otherwise, not to kill the deal.

This will be money well spent.  It protects you from hidden construction or other defects.

Additional Details:

While it's true that FHA does not require an inspection, they do recommend that you have one, and it is definitely to your benefit.  The following is from the FHA website:

Why a Buyer needs a home inspection:

Home inspections are not appraisals. A home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase. A property appraisal provides an estimate of a property's market value. Lenders require appraisals on properties before loan approval because they do not want to loan more than the property is worth. Appraisals benefit lenders; home inspections benefit buyers.

In a home inspection, a qualified inspector takes an in-depth, unbiased look at your new home to:

    * Evaluate the physical condition: structure, construction, and mechanical systems;

    * Identify items that need to be repaired or replaced; and

    * Estimate the remaining useful life of the major sytems, equipment, structure, and finishes.

The FHA does not guarantee the value or condition of your future home, and the FHA does not perform home inspections. If you find problems with your new home after closing, FHA cannot give or lend you money for repairs, nor can it buy the home back from you. FHA cannot help you in discussions you may have with the builder or seller.

When you make a written offer on a home, you should insist that the contract states that the offer is contingent (dependent) on a satisfactory (to the buyer) home inspection conducted by a qualified inspector. If you are satisfied with the results of the inspection, then you can proceed with your offer or make a counter offer if the results are not satisfactory.

As the buyer, it is your responsibility to carefully select a qualified inspector. The following sources may help you find a qualified home inspector:

    * State regulatory authorities — some states require licensing of home inspectors.

    * Professional organizations — may require home inspectors to pass tests and meet minimum qualifications before becoming a member.

    * Phone book Yellow Pages — look under "Building Inspection Service" or "Home Inspection Service".

    * The Internet — search for "Building Inspection Service" or "Home Inspection Service."

    * Your real estate agent — most real estate professionals have a list of home inspectors they recommend.

Answer 3

The Buyer Pays For Inspections unless negotiated differently in the purchase contract. Inspections are not required for FHA approval. But it is wise to have your potential investment inspected before making a major home purchase.  

Answer 4

NO it doesn't.

FHA loans DO NOT require an inspection.  All they require is an appraisal and an appraisal is not the same thing as an inspection.

FHA loans used to have something called VC sheet that FHA hasn't required in over 2 years.

So, whoever is telling you that, don't use them b/c they are not experienced with FHA loans.

FHA loans has NEVER required an inspection, except for termite and well (if the house has it's own well), and it doesn't even require the termite anymore.

You sign a document as part of your loan package that says, "For your protection, get a home inspection"...which ADVISES you but doesn't REQUIRE you to get a home inspection.