FHA loans used to be highly avoided by home sellers. Those who were selling their homes often requested only conventional loans because they worried about the complexities of loan inspections. FHA loans are insured by the federal government. That means that the government wants to be sure the value and condition of the home are high enough to warrant the mortgage and that they are safe to live in. The good news is that FHA loan inspections are much less complex than they used to be. The bad news is that you still have to have one to get into a home with an FHA loan.
While that’s the case, don’t worry too much about what goes into the FHA loan inspections. Even with conventional loans, you’ll want a home inspection. You want to know what hidden problems there are with a home. More so, you want to be sure that what you are getting is really worth the price you are paying for it. Therefore, view FHA loan inspections as opportunities to learn about problems you may not have noticed.
What They Are Looking For
What are FHA loan inspectors looking for? Once you apply for an FHA loan and have an offer on the home, the next step is to have an approved home inspector (who is working for FHA, not you, not the lender and not the home seller) come to the home. They will walk around, checking various aspects of the home. Most inspections take only 30 minutes to an hour to complete. You may wish to be present so you can learn of any defects or problems first hand.
There are some problems that they may require repairs to be made on before they will agree to funding the loan. Some potential problems include:
· The home has a defective roof; leaking roofs will need to be replaced or repaired. Age is less likely to be a factor assuming the roof doesn’t have any signs of leaks.
· Chipping paint may be a problem, especially in an older home.
· Handrails may need to be installed on steep steps without them.
· Windows that are broken may be a problem, though sticking or cracks may not warrant replacement.
It’s important to note that the FHA loan inspector that comes to your home is not doing the job of a professional home inspector working for you. If there are problems with the home’s inspection, the repairs will need to be made before the loan can be funded. The home seller often does repairs, but in some cases, the home buyer can do them. Once complete, the loan will move along the financing process.