Mortgage Services FHA Inspections Guide

For those wanting to sell their home or for investors looking to purchase a HUD property one of the things you will need is a home inspection, the requirements necessary for a FHA inspection is to first understand that the fha loan is insured by the federal government so they will want to make sure that the value and the condition of the home is worth the price the home is selling for.

Some things that may need repair include a leaking roof, chipped paint, replacing handrails, broken windows

FHA inspection Checklist

On the list of items looked at by the fha home inspection are things that have to do with safe and healthy deficiencies such as inadequate blocked entrances, missing exterior doors, as well as garage doors working properly.

Lead based paint hazard can be detected with the chipping or flaking of paint on the walls, porch, windows or fences.

Next things such as the plumbing system of toilets working properly and leaks of pipes, electrical systems, outlets and wiring of appliances, air conditiong unit, heating system are checked for irregular noises or smell, structional condition of floor, framing or attic of water damage, ventilation or visible holes.

Private road access for all weather surface such as gravel and reachable by foot or vehicle, grading and drainage, water supply and property considerations such as soil contamination or termites.

As well as location hazards are determined for high voltage transmission lines, gas wells, or excessive noise from heavy highway traffic are all things considered in a home inspection that will determine if you will get the fha loan before buying a real estate investment property.

The appraisal is the part the has the most weight in a home purchase, the propertys condition must be documented for a FHA mortgage. Other requirements include that you must use a appraiser from a FHA approved list, Then the appraiser will get a case number from the broker or lender.

Some appraisal changes that has happened in the last few years is that minor defects, normal wear and tear and cosmetic, are reported to the lender but if they are not safety hazards or the stuctural soundness of the home will not cause a major problem then it may not require automatic repair, in other areas such as with a flat roof, septic or wood destroying insects, or the functioning of the water system.

Change in FHA Cash out FHA allowable fees

FHA has waived its 90 day property flipping rule for one year, as well as raising the minimum down payment, establising a minimum credit score, increasing the cost of mortgage insurance while relaxing limits on origination fees.

The u.s. department of housing and urban development removed the 1% loan origination fee cap on FHA mortgages as well as a change in the FHA cash out refinance policy with the maximum loan to value ratio on cash outs going from 95% to 85% for all loan amounts.

Owner occupied financing is limited to one primary residence, after one year out of bankruptcy you can qualify for a FHA loan, with no minimum credit score requirement.

HUD FHA Inspector Requirements

Inspectors and 203 K consultants must review FHA handbook policies and guidelines, of the minimum property standards, architectural processing and inspection for home mortgage insurance, learn requirements for single family existing housing 203 K rehabilitation mortgage insurance, HOC reference guide.

Inspector fees and repair conditions, FHA repair and inspection requirements for existing properties and revisions to FHA appraisal protocol.

A home inspection gives the buyer more information of the overall condition of the home before purchase and a qualified inspector will evaluate the physical structure,

Identify items to be repaired or replaced, estimate usefulness of systems and equipment, the difference with appraisals is that the lenders estimate the market value of the home.

Making sure that the house meets FHA minimum property standards and this will deternine if the property is marketable. You can also request a radon gas testing with your home inspection. Being a informed buyer is key to getting a home that is worth the asking price.