Homeowners financing with FHA/HUD mortgages
FHA Appraisers Inspection
Homeowners financing with FHA/HUD mortgages need to be aware that an FHA/HUD appraiser will also be inspecting the home. InspectorNick.com (nor any other independent home inspection company) will be performing an FHA inspection during our routine home inspection. The lender/bank will contract an FHA/HUD inspector for their protection ... not yours.
Why Do I Need Two Home Inspections for My FHA/HUD Loan?
You need an independent home inspection to protect yourself as a buyer. We'll not only look at the "basics" when it comes to your home, but we will be looking out for your best interest. Plus, we'll educate you on your home as far as maintenance, what to watch for and how to repair. An FHA appraiser will only be looking at the home for the benefit of the lender. They won't be looking out for you to protect your investment.
Read our blog post about FHA & VA loan appraisals vs home inspections.
Preparing for FHA Appraisers
All FHA appraisers operate at their own discretion of the severity of the inspection requirements. To prepare for this inspection, print off an "FHA Inspection Checklist" so you can prepare yourself for potential FHA inspection requirements. Here are our tips for how to prepare for your FHA appraisal if you're financing with an FHA loan:
FHA Loans - General Tips for your FHA Appraisal
- A FHA appraiser is required to inspect for chipping, peeling, or flaking paint on a home. If you notice any deficiencies, take the initiative to scrape, sand and apply two coats of paint on those areas that need attention. This includes the inside of the house and most notably the inside of the window frames.
- Check all electrical switches to make sure all lights come one. If any have burned out light bulbs, replace the bulb with a working one. If any switches don't work, replace them. Check all electrical outlets to see if they work.
- Turn on your air conditioning (AC) to see if it blows cold air. Also, check to see if the heater blows hot air. If not working properly, a FHA appraiser will probably condition for these items to be serviced before final loan approval.
- In the bathroom, re-caulk the tubs and basins. Repair any holes in the tile, tub or sinks. Fix all leaks and clean any water stains from dripping faucets.
- Repair any holes, tears or rips in the flooring.
- Most importantly, make sure the house is neat and clean. Vacuum the carpets, clean the kitchen, scrub the tub. Be sure that the FHA appraiser has clear access to the all areas of the house. Remove the clutter and properly dispose of any hazards that may present a problem during the FHA inspection.
FHA Loan Tips For Kitchens And Bathrooms:
A property must have adequate water supply and fixtures to support its use. This guideline requires a FHA/HUD appraiser to check:
- the function of toilets and observe any evidence of leaks
- for structural damage under fixtures and the presence of puddles
- for any obvious evidence of malfunction of the sewer system
- the sinks and pipes for leaks
- if the home has running water
- any significant drop or limitation in water pressure
An FHA appraiser may require the repair or replacement of counter tops and flooring wherever underlayment is exposed or damaged by water.
FHA Loan Tips About Roofs And Attics
- The roof must prevent moisture from entering the home and provide reasonable future utility, durability and economy of maintenance.
- The roof should have a remaining physical life of two years. If the roof has less than two years remaining life, the appraiser must call for re-roofing or repair.
- FHA will accept a maximum of three layers of existing roofing. If more than two layers exist and repair is necessary, all of the old roofing must be removed as part of the re-roofing.
- Roofing on slopes of 2.5/12 pitch or less must be installed by a licensed roofer using built-up roofing that meets the Uniform Building Code.All flat roofs require a roof inspection. If the Subject Property is part of a large multi-family building (i.e. condo), no roof inspection is needed. If the building is a small 4-unit building or townhouse type unit covered by a condo association with the Subject Property having its own roof, then a roof inspection is a requirement.The FHA appraisers are required to inspect the attic area unless the property is a mobile home or dwelling with little or no attic (due to the interior roof slope).
The FHA appraiser will note any evidence of holes in the roof/ceiling, the condition of the support structure, any significant water damage that is visible from within the interior and evidence of ventilation by vent, fan or window.The above FHA/HUD loan tips are the guidelines required for property approval.Any condition not met by the list may result in the property requiring repairs in order to meet FHA/HUD appraisal guidelines.
Refer to the HUD handbook 4150.2 and "Appraisal and Property Requirements" for more information.