FHA Ispection

And what form did the lender request?

Typically when I am dealing with lenders they request a “final” inspection…which is their terminology for a 92051. If they want another type of home inspection, they should be asking for it. If they say “final”, and I give them a 92051 and they aren’t happy with it, that’s their problem for not asking for what they needed.

We are talking oranges and apples when discussing “Final Inspection” and a “Home Inspection” the latter is required when purchasing a home with a mortgage backed by FHA and the home has been owned by the seller for less than 90 days.

The typical Home Inspection report is sufficient for the lender required home inspection.

So are you saying these must be done by a FHA “approved” inspector?

They are in AZ Chris, regarding the 90 day period, by lenders I have spoken to.

I just ran into the FHA inspection requirement this past week, I was going to call Mark to get more information, like everyone said the FHA website is not quite to par.

And contacting anyone who knows a thing in an FHA office (Santa Anna CA for Phoenix) is next to impossible.

Between what I have read here, and talking to Lenders and Realtors I believe I have it figured out now…FHA wasn’t much help…pretty incredible actually.

Nick has a lot of information here.

And here Mortgagee Letter

So I have this straight a FHA approved inspector is a 203K Consultant?

No. 203K Consultants are something different.

FHA approved inspector is found on the FHA approved inspector list. “Fee Inspector”.

I would presume that a 203K Consultant would also be approved but IDK.

The new program from HUD that allows a flip home to go under FHA financing requires the lender to have the home inspected. The lender selects the inspector and pays for the inspection. This is in the HUD letter that describes the program.

In the letter is states that the inspector does not have to be a FHA roster or a 203K inspector, this is in section 2.b of the letter. They just need to have a license if they are in a licensed state.

Both 203K and FHA Roster inspectors have their own search section on the HUD site.

I have attached the HUD letter about the Flip program.

Hope this helps…

203k Consultant is an appraiser.

Y’all need to stop the misinformation… Go to this page on the HUD site and it will tell you everything you need to know… http://www.hud.gov/offices/hsg/sfh/insp/inspectr.cfm

An appraiser could be a 203K Consultant but you do not have to be an appraiser to be a 203K Consultant.

I’m a 203K Consultant (my 203K number is A856) but I’m not an appraiser.

It is not that difficult to become a 203K Consultant. Just meet the qualifications and fill out the paperwork properly. Send it in to the proper HUD address and in about 2-3 weeks you will be listed on the 203K roster as a Consultant.

I do pretty good as a 203K Consultant, right now I have five consulting clients that I’m working with. They can be a pain to do, but then you also have some real easy ones that make up for the difficult ones. Wells Fargo is the largest lender who participates in the 203K program.

I’ve been reading the posts here as part of my research to determine if either of these (203k / FHA) is something I should get involved with. How much work can one expect to get from this and how does the pay and time to complete compare to a Home Inspection? (I understand this may vary geographically, but just interested in opinions / personal experiences)

I think I read somewhere on one of these you have to go to a 3 day trainin course in DC? Is that really the only place the course is offered?

FHA has been most of my business in the past 4 months. Roster Inspector is a home inspector just to clarify that a little. A 203K consultant does an appraisal of existing and after refurb valuation. Either Roster or 203k inspector can do phase and final inspection. If done right, these are a real “to FHA code” (meaning the 5 manuals you have to maintain and know)… everything from lot size to building standards. MOST lenders (FHA Mortgagees) require a full inspection report plus 92051 on a final now; the “repair” inspections require a report and 92051 aimed ONLY at what got repaired and what remains to be repaired. It’s really not that complicated… I call our local FHA field office technical support every now and then just to verify procedure, and they have been great helps. Also, there are only 4 check boxes for people who can sign 92051 and it might be good to be one of those… those forms go on file for the life of the mortgage and can be audited any time… just in case.

The training in DC is for HUD inspectors, who are another whole world if I’m not mistaken. They do HUD owned housing as far as I know. I checked into that, it’s very competitive, low price wins, did a spreadsheet on “Right to know” prior awards (for inspections) and said “no way… I can’t afford it”.