FHA Home Inspections are performed just like a general inspections, but additionally focus on a number of requirements of the FHA. An FHA Inspector examines all components of the home including its structural integrity, mechanical systems, and safety concerns. However, most lending do not require this type of inspection. Instead they only require an appraisal.
Unfortunately the required appraisal is primarily geared towards protecting the BANK’s financial interest and not necessarily the interest of YOU the home buyer!
How do FHA Home Inspections differ from FHA Appraisals?
During the FHA loan process, the bank will hire an approved third party to perform an FHA Appraisal. The job of the appraiser is to focus on the market VALUE of the home as well as the condition. It is important to note that when evaluating the CONDITION of the home an FHA appraiser is only concerned that the home is up to the MINIMUM standards required by the FHA. These requirements almost exclusively concern health and safety, and is NOT a full home inspection. Any defects discovered by the appraiser may put the loan closing on hold until they are repaired.
On the other hand, an FHA Home Inspection is performed by a Certified Home Inspector and is a FULL evaluation of the home. This inspection is secured by the buyer, and is not always required for an FHA loan but is always recommended. According to the Department of Housing and Urban Development:
“HUD requires an appraisal (with a built-in health-and-safety inspection). They do not require a regular home inspection — but they strongly encourage it. This is a source of common confusion among buyers and sellers alike.” — From: http://www.fhahandbook.com
Protect your family and your investment…schedule an inspection today!