FHA licensing?

I was at the bank today and was asked if I could do FHA inspections. She thought there was a seperate license. Is this true? I am in Tennessee.
Thank You

Hi Lawrence…I think this will help you. You have to be on the approved list to do HUD/FHA inspections. They are picky & you need to carefully read and understand everything.
Go to this link
FHA Inspectors and 203(k) Consultants - HUD

Then go to the bottom of the page to “Forms” and you will find the “FHA Fee Paid Inspector application” link. Fill out the form and send it in.

You have to go to Washington DC and go through a “School” in order to be Certified.

All of the information, and applications are available on line.


According to the application, one only needs experience and references.

In the past I wanted to do HUD / FHA inspections. I took the time and trouble to call the HUD Office both in 2006, and 2007. They told me that in order to become familiar with their polices, procedures and THE “NECESSARY FORMS” that had to be filled out for every inspection I had to go to Washington DC and attend a “School”.

  • The “School” was free but naturally I had to pay for my own travel and accommodations.
    The wife and I were going to go and she was going to spend the two or three days touring the Smithsonian Institute but… “Life” intruded and I could never make the trip either in 2006 or 2007.

I have provided a list of “documents / forms / booklets” that as a HUD / FHA inspector you would be required to be familiar with.

I guess that is the sole purpose of the “school”. and …I was told by the HUD personnel that there is a final test involved.

[size=3]Quote From the HUD / FHA Application: [/size]
[size=3]For Inspectors, [/size][FONT=Arial,Arial]I certify that I have a minimum of three years experience in one or more construction-related fields and that such experience has equipped me with a thorough familiarity and understanding of residential construction techniques as related to new construction and repairs of a structural nature. [/FONT]

[FONT=Arial,Arial]I certify I will conduct my inspections in accordance with HUD/FHA requirements. I further certify that if licensing or certification is required by the state or local jurisdiction(s) in which I will operate, I will maintain such licensing or certification in good standing with the applicable jurisdiction for the duration of my tenure on the FHA Inspector Roster. [/FONT]

[FONT=Arial,Arial]I further certify that I have read and fully understand the inspection requirements, including any update to those requirements, including Mortgagee Letters, in performing all inspections on properties that will be security for HUD/FHA insured mortgages and contained in the following documents: [/FONT]
(i) HUD Handbook 4905.1 REV-1 (Requirements for Existing Housing, One to Four Family Units);

(ii) HUD Handbook 4910.1 (Minimum Property Standards for Housing);

(iii) HUD Handbook 4145.1 REV-2 (Architectural Processing and Inspections for Home Mortgage Insurance);

(iv) HUD Handbooks 4150.1 REV-1 (Valuation Analysis for Home Mortgage Insurance) and 4150.2 CHG-1 (Valuation Analysis for Home Mortgage Insurance for Single Family One to Four Unit Dwellings);

(v) Permanent Foundations Guide for Manufactured Housing (formerly known as HUD Handbook 4930.3G, Permanent Foundations Guide for Manufactured Housing);

(vi) All applicable local, state, or Council of American Building Officials (CABO) code(s) for the jurisdictions in which I will operate; and

(vii) The HUD requirements at 24 CFR 200.926

FONT=Verdana HUD or its authorized agent(s) may inspect my work files at my place of business during normal business hours after providing me reasonable notice of such inspection.
End Quote:

Not only is there a test, the last time I checked into it (last year) - there is also a period where you have to work with a qualified FHA inspector for a short period of time, completing a certain # of inspections under them.

There is a lot more to it than just filling out the application. I ended up not even bothering with it. It took almost 4 months before I got a response after sending in the application. I was set to go to DC, but then heard it was a waste of time to get involved.

But if anyone has had a good experience with the program, plase speak up, I’d like to know. :slight_smile:

Is this a lucrative business opportunity? How would you find out if it is in your area.

I could be completely wrong, but I was under the impression that most (FHA approved) appraisers are doing these inspections with their appraisals. If that is the case I don’t see home inspectors getting much business when the banks can have both done at once. Like I said though, I’m not sure about this, so please correct me if I’m wrong.

I have posted this in a couple other threads months ago and here it is again. 203k consultants need training and certification in Washington, DC. Home Inspections for HUD/FHA type loans do not have to be carried out by a fee panel inspector. The following letter explains that. Hope this helps

Mortgagee letter 88-5 provides that Qualified home inspectors are allowed to do a Home Inspection and reads as follows:

WASHINGTON, D. C. 20410-8000

February 29, 1988
Mortgagee Letter 88-5
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

If you have questions about this posting feel free to contact me.

HUD Request

I have been a HUD FHA 203K Consultant for more than 15 years. The REAC training class is the one that mandates a on site class and not the 203k Consultant. If you have any questions on my experience with HUD please feel free to contact our firm: MDR Inspection & Analysis, LLC Office: 410-265-1292 or 410-752-0035 ext: 204

George R. Evans, PhD. CEO

NACHI Members

The MDR Inspection & Analysis, LLC has teamed up with a Maryland college and has provided licensing classes for Maryland Inspectors, we would like to offer to any NACHI members discount opportunity for some of our fast track classes. If you are interested contact either of our offices at (410-265-1292 or 410-752-0035-ext: 204) provide your current NACHI ID # to receive your discount and admission to a NACHI only member training session.
You can also use our contact us link at: http:www. mdrinspections.com

George R. Evans, PhD. CEO
MDR Inspection & Analysis, LLC

It amazes me how often this question comes up, and is so often misunderstood.

My understanding is you simply want to know if you are doing a home inspection for a buyer, who is obtaining an FHA loan, do you need anything special (license, certification, etc.). The answer is NO…you do not need anything special.

I have NEVER had any problems with FHA lenders accepting my inspection reports, which are done to I-NACHI SOP. Same goes for VA loans.

They may require a pest report, and you may need a license for that in your state. Or they will have a pest inspector do that as a seperate inspection.

…here is where everyone gets confused. HUD has a 203K rehab. program, which does require special training, etc to do their inspections. Those I can not do. …AND I really do not care to do, because there really aren’t that many. (At least in my area)

I do home inspections for buyers with conventional, FHA, & VA loans, with nothing more than my NACHI certification, and general home inspection training.

Hope that helps and good luck!

Great post Howard. I to believe alot of people could confuse the two.