December 4, 2020

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FHA Loan Reader Questions: Buying A Home “Under False Pretenses”?

052A reader asks, “I was trying to get answers on what to do if you have brought an house under false pretenses… There’s alot of issues with the house that wasn’t disclosed in the property disclosure form.”

FHA home loans require an appraisal as a condition of loan approval. The appraisal establishes the fair market value of the home, but it also insures the home for sale meets FHA minimum property requirements. However, passing the FHA appraisal process is not a stamp of approval from the FHA nor is it a guarantee that a home is free from defects.

Borrowers are strongly encouraged by the FHA and by real estate experts to pay for a home inspection prior to committing to the sale of a property. The home inspection, when carried out by a licensed or certified professional, is a far more in-depth review of the home. Home inspections can reveal issues with the property not evident at appraisal time and can help a borrower be truly informed as to the condition of the home.

Buying a home without such an inspection is, frankly put, a crapshoot. You really won’t know the condition of the property going into the transaction and it’s extremely ill-advised to purchase a home without having it inspected first.

The reader question does not indicate whether or not a home inspection took place prior to the sale, so we mention all that to remind readers of the great importance of the home inspection. Yes, it costs money for the borrower, but it’s a case of investing a few hundred dollars up front to potentially save many thousands of dollars later.

The reader’s best course of action in a case like this is to talk with a lawyer or a real estate legal expert to determine what the options might be. That’s really the only thing we can recommend–state or federal law may have a say in how this situation can be handled but the only way to be sure is to discuss the particulars with a lawyer.

Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for review.

Joe Wallace - Staff Writer

By Joe Wallace

February 11, 2015

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 for (8) years and is currently the Associate Editor for

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