Hud Inspection

General Inspection Topics General Inspection Discussion
1

Hi all,

I was called to do a HUD inspection today. I was asked am I qualified and I know I certainly am but maybe not in the terms that HUD would like me to be. I tried looking on the HUD web site and Googling about HUD inspections and qualifications but I couldn’t find anything. I did find the inspection form that is used but that was it. Any help would greatly be appreciated.

Thanks,

Louis Agudo

2

I found this on the HUD website awhile back. It is there, I’ll see if I can find it again and if I do I’ll post it here.

3

I have completed several HUD inspections and they provide you with a checklist sheet. Essentially you just inventory house and take pictures of all rooms. If you will email me will send you a copy of checklist.

4

Wendy ,

I couldn’t find anything on the HUD web site about inspector qualifications or about having to sign up with HUD to do a HUD inspection. If you can find it and post it , that would be great.

Louis

5

Steve ,
I tried emailing you but your email is turned off on NACHI. It wouldn’t allow me to send it to you. Did you have to fill out any forms to qualify as a HUD inspector or do you just use there inspection sheet? If you want to send me the checklist or forms , that would be great.
lagudo@ga.nachi.org

6

Here read this

http://www.pueblo.gsa.gov/cic_text/housing/inspection/cover.jpg

For Your Protection Get a Home Inspection
(http://www.hud.gov/)
Office of Housing
Office of Single Family Housing

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Why You Need a Home Inspection
Buying a home is one of the most important purchases you will make in your lifetime, so you should be sure that the home you want to buy is in good condition. A home inspection is an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will:

<LI class=fontblack80arial>Evaluate the physical condition: the structure, construction and mechanical systems. <LI class=fontblack80arial>Identify items that should be repaired or replaced.

  • Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.

The home inspector does not estimate the value of the house.After the inspection is complete, you will receive a written report of the findings from the home inspector, usually within five to seven days.
This brochure is primarily for homebuyers that buy their homes with the help of the Federal Housing Administration (FHA) mortgage insurance programs. All homebuyers can benefit from the information in this brochure to understand the difference between home inspections and appraisals, the benefits of home inspections, how to find a qualified inspector, and the importance of radon testing.
Home Inspections Are Not Appraisals

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A property appraisal is a document that provides an estimate of a property’s market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.
FHA, which is part of the (http://www.hud.gov/), requires lenders to obtain appraisals of properties securing FHA-insured loans. FHA requires appraisals for three reasons:

<LI class=fontblack80arial>To estimate the market value of the property. <LI class=fontblack80arial>To make sure that the property meets FHA minimum property requirements/standards (health and safety).

  • To make sure that the property is marketable.

The FHA appraisal process will note property deficiencies that are readily observable and found not in compliance with HUD’s minimum property requirements/standards (Handbook 4905.1 REV-1 and Handbook 4910.1). These deficiencies may not be the same as those items noted in a home inspection report.About FHA Home Inspections
FHA helps individuals and families become homeowners by providing lenders with mortgage insurance for certain loans.
FHA does not guarantee the value or condition of your future home, and FHA does not perform home inspections. If you find problems with your new home after closing, FHA cannot give or lend you money for repairs, nor can it buy the home back from you.
That’s why it is so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to thoroughly examine the physical condition of your future home and give you the information you need to make a wise decision.
The Bottom Line: Spending Hundreds May Save Thousands
When you make a written offer on a home, you should insist that the contract state that the offer is contingent on a home inspection conducted by a qualified inspector. You will have to pay for the inspection yourself, but it could keep you from buying a house that will cost you far more in repairs down the road. If you are satisfied with the results of the inspection, then your offer can proceed.
FHA does not guarantee the value or condition of your potential new home, and FHA does not perform home inspections.
Finding a Qualified Home Inspector

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As the homebuyer, it is your responsibility to carefully select a qualified inspector and pay for the inspection.
The following sources may help you find a qualified home inspector:

  • State regulatory authorities. Some states require licensing of home inspectors.

  • Professional organizations. Professional organizations may require home inspectors to pass tests and meet minimum qualifications before becoming a member.

  • Phone book yellow pages. Look under “Building Inspection Service” or “Home Inspection Service.”

  • The Internet. Search for “Building Inspection Service” or “Home Inspection Service.”

  • Your real estate agent. Most real estate professionals have a list of home inspectors they recommend.
    Radon Gas TestingThe (http://www.epa.gov/radon/) and the Surgeon General of the United States have recommended that all houses should be tested for radon. For more information on radon testing, call the National Radon Information Line at 1-800-SOS-Radon or 1-800-767-7236. As with a home inspection, if you decide to test for radon, you may do so before signing your contract, or you may do so after signing the contract as long as your contract states the sale of the home depends on your satisfaction with the results of the radon test.
    Information Resources
    HUD has resources available for information about homebuying and homeownership. You may find the following services helpful.
    **Internet
    **www.hud.gov or espanol.hud.gov
    </SPAN>HUD’s website contains comprehensive information about home inspections, homebuying, homeownership, selling a home, making home improvements, and other housing-related topics— in English and Spanish.
    National Lead Information Clearinghouse
    Many homes built before 1978 have lead paint, and some of these have lead hazards. To protect your family, it is recommended that you get a lead-based inspection and/or risk assessment. For more information, contact the National Lead Information Clearinghouse at 1-800-424-LEAD.
    **HUD-Approved Housing Counseling
    **HUD supports a network of approved housing counseling agencies that provide counseling services across the nation. For a complete list of HUD-approved agencies in your area, call the toll-free HUD housing counseling referral line 1-800-569-4287 or visit the HUD website at www.hud.gov.
    **HUD-Approved Lenders
    **A searchable database of HUD-approved lenders, including banks, mortgage companies, and credit unions, is available on the HUD website at www.hud.gov.
    http://www.pueblo.gsa.gov/cic_text/housing/inspection/hud-seal.gif

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February 2005

7

Ron,

Thanks for the info but I already was on the web site and saw all that info. I guess that there is no specific sign up with HUD to do a HUD inspection just as long as I use there forms I’m okay.

8

Louis,
What do you mean you were called? Who called you and how did they get your name/number? Was this through an agent?

9

James,
It was a realtor who I have done work for in the past. She asked have I done a Hud inspection before because she has a client who needs one done. I told her that I did not know what a Hud inspection was and that I would look into it. That is why I posted in this forum. Thank you to everyone who tried helping me with this information.

Louis Agudo

10

Try this link http://www.hud.gov/offices/reac/products/pass/pass_trng.cfm

I am pretty sure you have to take a class and pass a test to be a HUD inspector. I know there are a few guys here that work with HUD, I am sure they can give you a lot more information.

11

Sorry posted the wrong message if you read this mortgagee letter you will see it states that if you are

http://www.hudclips.org/gif/hudlogo.gif

a qualified inspector you can do inspections.

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](http://www.hudclips.org/sub_nonhud/cgi/pdfforms/92800-b.pdf), 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
jurisdiction.

                               Sincerely,
                               Thomas T. Demery
                               Assistant Secretary
12

Thanks Ron for the info.

Louis Agudo

13

NEW
All inspectors seeking placement on the FHA Inspector Roster, including those currently deemed eligible by HUD to perform FHA inspections, must meet the new eligibility criteria listed below and apply or reapply for placement. To be eligible for placement on the FHA Inspector Roster an applicant must:

  1. Have a minimum of three years experience in one or more construction related fields. The applicant must be equipped with familiarity, experience and understanding of all aspects of residential construction techniques and methods, particularly as related to new construction and/or repairs of a structural nature;
  2. Possess an inspector’s state or local license or certification, if licensing or certification is required by the state or local jurisdiction where the inspector will operate;
  3. Read and fully understand FHA’s inspection requirements, and any updates to those requirements, including:
    a) HUD Handbook 4905.1 REV-1 (Requirements for Existing Housing, One to Four Family Units)
    b) HUD Handbook 4910.1 (Minimum Property Standards for Housing)
    c) HUD Handbook 4145.1 REV-2 (Architectural Processing and Inspections for Home Mortgage Insurance)
    d) HUD Handbooks 4150.1 REV-1 (Valuation Analysis for Home Mortgage Insurance)
    e) HUD Handbook 4150.2 CHG-2 (Valuation Analysis for Home Mortgage Insurance for Single Family One- to Four- Unit Dwellings)
    f) Permanent Foundations Guide for Manufactured Housing issued by Mortgagee Letter 97-36
    g) Applicable local, state, or Council of American Building Officials (CABO) code(s)
    h) HUD requirements at 24 CFR 200.926

Procedure to Obtain Placement on the FHA Inspector Roster

The applicant must submit the following information:

· An original of the completed form HUD-92563, “Application for Fee or Roster Personnel Designation”, which has been updated to reflect the procedures and certification requirements detailed in final rule at 24 CFR 200.170-172 and which may be used immediately;

              **[http://www.hud.gov/offices/adm/hudclips/forms/files/92563.pdf](http://www.hud.gov/offices/adm/hudclips/forms/files/92563.pdf) **

· Proof of a valid state or local license or certification if licensing or certification is required by the state or local jurisdiction where the inspector will operate;

        **The information must be submitted to**:

        **Department of Housing and Urban Development**

** Office of Single Family Housing**
** Attn: Valuation Branch**
451 7th Street, SW, Suite 9270, **
** Washington, DC 20410
** Telephone Number: 202-708-2121**

14

Greg, Where did this come from, how new is it, and how did you receive it? I’m HUD approved but this is the first I’ve heard of this.

15

That was in an e-mail I got from GCI urging it’s inspectors to get on the roster. Instructions for the approval process for the 203K Consultant Program will be sent to GCI inspectors in a future communication. DDN has started assigning site inspections for the 203K’s. I’m glad they keep up on these things. It makes it so much easier to get on the roster. The new construction draw inspections have dried up but the renovation loan inspections have picked up.

16

Linas is correct. I just recived this last week from Granite Construction Inspections and I submitted the application. They said that you have to keep checking back to see if you are on the list because you will not be notified if you are approved. See below:

Please monitor the FHA Inspector list as FHA HUD will not send you an approval letter upon acceptance and placement onto the roster list. http://www.hud.gov/offices/hsg/sfh/insp/inspectr.cfm
(The quickest way to locate your name on the list is to enter your state code instead of utilizing the other search qualifiers as they don’t seem to work.)

17

You need to contact you local state FHA office to inquire about being placed on the roster. from what I am told each state requirement is different. The rule list that has been posted to this forum is specific to Washington DC.

18

HUD is Federal. I don’t believe each state is different even though it should be (politically speaking of course). FHA does not mean State Housing Authority.

19

I know Rural Development has different rules for each state so I would not be surprised to see FHA the same way.

20

It takes about a month. I just checked and found I got listed.:slight_smile: