Does FHA lending care about my report? If I report a railing that is not up to code, however, a FHA lender just passes it because he sees a railing. Can my report trump the appraisal? I’m just wondering if my report influences the appraiser, or if any lenders actually are looking at reports. I know city incentive programs in Baltimore City read my reports. What about VA lending etc.?
An appraisal inspection is not a home inspection.
It determines value and habitability.
Stay out of it is my advice.
Inspection not appraisal, appraisal not inspection. I understood that already. Anyone besides myself know of their inspection report affecting lending? Anyone remember ACORN?
Sure it affects lending but that is up to the lender if he sees the report.
But you asked if your report superseded the appraisal report.
I guess that would be entirely up to the lender, no?
The lender will usually always go with the appraiser, because the loan when sold just needs to meet appraisal standards, not what a home inspector says. VA and FHA for sure and usually Rural Development (in the last year or so because most R.D. Loans are been sold as the same package as VA and FHA). R.D. loans are really messed up now because of this.
In Florida FHA loans, they used to look @ the report & decide if they wanted anything repaired. A few times they came back & demanded everything! Even an inoperative door lock.
That stopped years ago.
VA loans require a “clear” termite/WDO report.
The seller has to address it & I am asked to return.
Sometimes they want an invoice stating the seller paid for the termite/WDO.
They do not want the buyer to pay for it.
I personally have a problem with appraisers performing the type of small inspections they do.
They should stick to determining value only.
How’s your weather there lately Michael.
When inspecting for clients that are getting an FHA or VA loan I’ve had appraisers “use” my report to help write their appraisal.
Reason I know is the bank will contact me about a certain item(s), send me what the appraiser wrote, or copy of appraisal, and it will be word for word of what I wrote in MY report. This has happened several times.
I have had lenders tell me I cannot paid at closing because there is a risk the underwriter, if he knows there is an inspection, they will ask for it.
Just do your job and do not be concerned with what happens after. That way you are not influenced by anything other than what you think is right.
I believe the is the issue may inspectors have with 4 points and wind mits. They know what they report could affect their clients negatively. NOT YOUR PROBLEM. It is hard but try not to think about it.