December 13, 2018

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FHA Loan Reader Questions: Complaints About Substandard Work

052A reader asks, “I am looking for how to report substandard work with FHA home loan and FHA inspection being done by pictures. I purchased my home in November of 2013 and still have not received the needed corrections on the home that in turn is adding more cost to me for repairs.”

There are several possibilities based on the reading of this question. Is the reader complaining about an FHA appraisal that had required corrections that never took place? Or does the reader’s mention of an “FHA inspection” mean that the borrower paid for a home inspection that made recommendations that were never carried out to the borrower’s satisfaction?

In the case of the latter, if the borrower contracted for home repairs based on the recommendation of a privately hired home inspector, he or she would need to contact the company responsible for doing the work to complain. FHA loan rules don’t have any jurisdiction in such cases unless the repairs or corrections are related to an appraisal issue.

If the borrower is complaining that an FHA appraisal (which is not the same as a home inspection) wasn’t carried out properly, the first thing to do is to contact the FHA directly to discuss the issue and file a complaint. Contact the FHA by calling 1-800 CALL FHA to begin the process.

An FHA appraisal that had required corrections as a condition of loan approval must, in general, either have those corrections finished as per the recommendations of the appraiser or there must be scheduled repairs that address the issue to the satisfaction of the appraiser as discussed in the appraisal report. If such work was not done, a call to the FHA may be required.

In any case, if there are problems with the appraisal process, contacting the FHA directly is always the best course of action. Remember, the FHA appraisal is not a stamp of approval or a guarantee that a property is free from defects. That’s why FHA borrowers are encouraged to pay for a home inspection which can and often does reveal issues that an FHA appraisal does not address.

Do you have questions about FHA home loans? Ask us in the comments section. You can get information about applying or getting pre-approved for an FHA loan at FHA.com, a private company and not a government website.

Joe Wallace - Staff Writer

By Joe Wallace

April 18, 2014

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.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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