FHA Inspections

Please expound on that statement. Name a FHA loan that requires a Home Inspection or a Home Inspector performing a normal home inspection to meet any requirements. Once again, not a “final inspection” for the home completion or a 203k program loan. A buyer home inspection. It will be interesting since HUD does not require a home inspection at all.

There is a traditional home inspection which has nothing to do with HUD/FHA. HUD/FHA recommends all home buyers have one, but they do not require them, and don’t recommend inspectors for them. (There are no special forms for them.)

There is a HUD/FHA “inspection” that is done by the appraiser, in which you have to be a HUD/FHA approved appraiser. Really has nothing to do with us, but you will occasionally get a call for them. When I do, I have an appariser that I know that I sub out for them. It is basically an appraisal, along with some additional forms verifying that there are sinks in the bathroom, and windows in the bedrooms, etc.

There is also something called a HUD/FHA Fee inspector, in which you have to be a HUD/FHA approved inspector. There is an application, and specific forms that need to be filled out. If you are filling any of the HUD/FHA forms without being an approved fee inspector, or approve appraiser, you could be seriously fined. These are not traditional home inspections, but more a verification that a new home has been completed, or that repairs previously required are completed.

If a builder is going to be selling a home that could possibly be sold with an FHA loan, then it needs to meet HUD guidelines. The is where the fee paid inspector comes into play. Yes, it can be done by the appraiser and many do them. However, with appraisers running scared from previous years of screw-ups many are no longer doing them.

This year I have already done 7 such inspections, most are rural and do not have any code inspections except for the state of TN electrical inspection. Three inspections at $150 and the final at $200 are the going rates in my area.

If you are listed on the HUD roster you will have a number, my number is L-563 and for 203K my number is A-856.

You will not make a ton of money doing them, but it does get your name around with the various lenders in your area. I can’t tell you how much additional business I have seen over the years from the HUD work I have done for lenders.