Originally Posted By: jremas
This post was automatically imported from our archived forum.
With VA or FHA loans, unless the property has a well and septic then only a termite inspection is required. UNLESS the bank itself has its own requirement. The appraiser must be an approved FHA appraiser & it is actually their appraisal that calls out what is needed. A home inspection is recommended but not required.
If you want to find out the FHA requirements for a home sale good luck. You will not find any published goverment literature that specifies much of anything. Most of the time they refer to local building codes and unless the local municipality requires that someone do something, very little is actually required. Lots of confusion in this area. This is more of a subjective inspection than objective. You must address health and safety issues which can lead to a whole discussion.
Example (I will expect some rebuttle on this one):
*If there is no receptacle in the bathroom, do you have to make them install a GFCI receptacle? Would that be a requirement?
AnsER: NO, NO Now if the local municipality required it for a real estate transaction then OK but if they don't they the FHA does not either.
If the bathroom was being renovated then yes, one would be installed or an addition was being added then yes, but that is because of local codes which the FHA always refers to.
Call HUD and order for free the following material:
HUD Handbook 4905.1 REV-1 Requirements for existing housing, 1-4 units
HUD Handbook 4910.1 Minimum Property Standards for housing. (sec-Konly (also known as 24CFR200.926d)
HUD Handbook 4145.1 REV-2 Architectural processing and inspections for HMI
HUD Handbook 4150.2 Valuation Analysis for HMI (appraisers book)
I believe there is alot of confusion with the actual requirements for FHA and VA loans. The appraiser's inspection has the most in depth checklist for requirements. One of the most subjective issues is the home must not compromise its "marketablility". Here is an example of that: If the hardwood floors are worn down to the exposed wood then they must be sanded and refinished. However, if they are just darkened from age and use but the finish is intact then nothing is needed.
to order these books or call 1-800-767-7468
REMAS Inspections, Inc.
Northeastern PA & the Poconos