FHA Home Loan Appraisals - Home Inspections

When applying for an FHA insured home loan, the borrower(s) must sign a disclosure that details the importance of a home inspection.  

In previous sections, we learned that FHA offers a detailed home appraisal that covers many items often included in a home inspection.  However, an FHA appraisal is not a home inspection.  An appraisal is only an estimate of the market value of a property.  Furthermore, FHA does not guarantee the value or the condition of the home.  If a home buyer finds problems or defects after the closing, FHA will not give the home owner money for repairs or buy back the property.

A home inspection gives the buyer more detailed information than an appraisal--information you need to make a wise decision. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:

• evaluate the physical condition: structure, construction, and mechanical systems

• identify items that need to be repaired or replaced

• estimate the remaining useful life of the major systems, equipment, structure, and finishes 

A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors. 

The cost for a home inspection is only a few hundred dollars (which the seller may be willing to pay for).  Most importantly, hire only home inspectors that have the American Society of Home Inspectors (ASHI) designation.  These are inspectors that have met the rigorous standards of education, professionalism and expertise set by ASHI in order to attain that designation.