October 28, 2014
A reader asks, “My daughter bought home with FHA approved loan FHA appraisal did not said roof is in bad condition. After 4 months roof is leaking in 4 spots. She called roofing company to see what’s going on and they said roof should be replaced but with FHA regulations roof should last at least 2 years. What should she do now?”
The FHA and HUD address this specific issue in a document for FHA loan applicants titled, “For Your Protection, Get A Home Inspection“. It says in part:
“An appraisal is different from a home inspection. Appraisals are for lenders; home inspections are for buyers. An appraisal is required to:
— Estimate the market value of a house;
— Make sure that the house meets FHA minimum property standards/requirements; and
— Make sure that the property is marketable.”
The FHA encourages borrowers to get a home inspection (again, not the same as an FHA appraisal) stating the following in the same document:
“FHA Does Not Guarantee the Value or Condition of your Potential New Home
If you find problems with your new home after closing, FHA can not give or lend you money for repairs, and FHA can not buy the home back from you. That is why it is so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to inspect your potential new home and give you the information you need to make a wise decision.”
The only recourse this buyer may have is to seek legal counsel to determine whether there is a course of relief that could be pursued. There is no guarantee that the help of a lawyer can actually help the borrower resolve this issue but it never hurts to know what your possibilities are.
The bottom line when it comes to FHA home loans–or ANY type of mortgage loan involving a new purchase–is to make sure you have paid for a home inspection instead of relying on the appraisal in hopes that important issues were caught at that time. The FHA does NOT “approve” or “guarantee” a home with the appraisal process except to state that it meets MINIMUM FHA loan guidelines.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: