Mortgagee letter 88-5 provides that Qualified home inspectors are allowed to do a Home Inspection and reads as follows:
U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000
February 29, 1988
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 88-5
TO: ALL APPROVED MORTGAGEES
SUBJECT: Single Family Development - Certifications of Mechanical
Equipment, Roofing or Structural Components by Qualified
Home Inspectors (Existing Properties)
As a specific condition on Form HUD-92800.5B, for existing
properties, HUD or a Direct Endorsement (DE) Underwriter can require
an inspection and certification of the heating, plumbing, electrical
roofing or structural components of a dwelling by a reputable,
independent licensed contractor or engineer, as set forth in
paragraph 3-32 of HUD Handbook 4150.1.
The purpose of this memorandum is to expand those instructions
to permit qualified home inspectors to perform these inspections.
You are reminded that these inspections and certifications do
not imply any warranty by HUD of the inspections performed and do not
relieve the requirement for an inspection of the other items listed
as specific conditions on Form-92800.5B by a HUD fee appraiser or
inspector (or DE staff appraiser or inspector).
Please ensure that this procedure is used on only existing
properties. Inspections on proposed construction properties must be
accomplished by members of your fee inspector panel.
If you have any questions, please contact the Housing
Development Branch in the local HUD Field Office for your