December 10, 2019

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Articles Tagged With: Home Inspection

First-Time Home Buyer Advice: Get A Home Inspection

First-Time Home Buyer Advice: Get A Home Inspection

Some wonder if they have had a home inspection when the FHA appraisal results come back. First-time home buyers should know that a home inspection is something that should be done regardless of the appraisal because the two procedures are quite different. The appraisal is not a tool for the borrower and will not give you an idea of the true condition of the home. The home inspection is the job that needs to be done to give you that information. The FHA itself publishes a pamphlet called “For Your Protection, Get A Home Inspection” which includes this advice; “You have the right to examine carefully your potential new home with a professional home inspector. But a home inspection is not required by law, and will occur only if you | more...

 
https://www.fhanewsblog.com/2019/07/myths-about-home-loans-and-credit/

FHA Home Loans, Appraisals, And Home Inspections

FHA home loans require an appraisal in order to insure the property meets minimum FHA requirements. The appraisal also helps the lender set the loan amount based on the adjusted value of the home. Some borrowers are tempted to skip the optional home inspection process and simply go with the FHA appraisal. This is a bad idea because doing so basically results in buying a home and making a large investment without knowing the true nature of the property’s condition. There are some questions you can ask yourself to help better understand why a home inspection is needed; learning the answers to these questions can definitely change your mind about the temptation to skip a home inspection. How Does The Buyer Know If There Is A Roof Problem? Can you | more...

 
What Is Ahead For Home Loan Interest Rates?

Five Questions People Ask About FHA Home Loans

Got questions about FHA home loans? Here are five questions people typically ask about FHA mortgages and the answers according to the FHA loan rules found in HUD 4000.1. Remember that additional lender standards may apply and these answers are based on FHA loan guidelines and not additional lender requirements. Do FHA Home Loans Offer A No Down Payment Option? FHA mortgage loans do not come with zero money down or no money down options but FHA loan rules do allow borrowers to accept properly documented gift funds for down payments from relatives, friends, or employers. You can’t use a credit card cash advance to make the down payment, nor can your down payment gift fund provider. Ask your lender how to help properly document the source and nature of | more...

 
HUD Announces Expanded Disaster Relief Options

HUD: June Is National Healthy Homes Month

The Department of Housing and Urban Development has announced the second-annual National Healthy Homes Month. According to a press release at the FHA/HUD official site, “Launched by HUD’s Office of Lead Hazard Control and Healthy Homes (OLHCHH), National Healthy Homes Month 2017 will focus national attention on ways to keep people of all ages safe and healthy in their homes.” That focus includes an emphasis on lead paint. According to the HUD official site, National Healthy Homes Month is themed, “Just What the Doctor Ordered,” and put the spotlight on “the vital role that pediatricians and the health community play in healthy homes education” The HUD press release observes that due to lead poisoning and other home-connected health risks, creating a healthier home environment should be a top priority. “National | more...

 

FHA Loan Questions: Home Inspections

A reader asks, “So what do I do if I bought a house with an FHA loan and 2 weeks after closing the roof leaks? You can visually see more than 3 layers of roofing without setting foot on the roof or a Ladder? Obviously the roof didnt have 2 years of life left in it and obviously it was in need of repair. Also the inspector I hired didnt go up on the roof either. What are my options now? Also code in my area is no more than 3 layers of roofing and after getting estimates the house has 5 layers on it.” FHA loan appraisals and home inspections are two different things. The reader question in this particular case seems to indicate that the borrower paid for | more...

 
FHA One-Time Close Construction Loans In 2019

FHA Loans and Home Inspections

Recently we answered a reader question about FHA appraisals. The question implied that the reader chose not to get a home inspection and relied on the FHA appraisal process alone in determining whether the house was defect-free or not. This is a situation we encounter often enough in reader questions that it makes sense to emphasize the importance of NOT relying on the FHA appraisal process as a means to detect flaws or defects with a home that could be purchased with an FHA mortgage. Why is doing so a bad idea? For starters, the FHA and HUD official site makes it very clear that the FHA appraisal is NOT an inspection. “Passing” the FHA appraisal process only means that the home meets MINIMUM standards. FHA appraisers are not required | more...

 

FHA Home Loan Questions: Problems With The Home After Purchase

One of the most important things a borrower can do is to pay for the optional home inspection prior to making the commitment to purchasing a home, or making the purchase of the home conditional on the results of the optional home inspection. FHA loans require an appraisal, which is NOT the same as a home inspection, and does not guarantee that the home is free of defects. Recently a reader asked us a question about a situation that may have involved a home inspection that didn’t catch a serious problem. “My daughter and son in law just bought a house two weeks ago with an FHA loan, they did pay for a home inspection which had small repairs to be done, once those were completed they closed on house | more...

 

FHA Loans: The Importance of a Home Inspection

From time to time we handle reader questions asking about defects in homes discovered after purchase. When applying for an FHA home loan, an FHA appraisal is a requirement for loan approval, but a home inspection is an option the borrower is free to use (or not). But this “option” is an investment no borrower should skip, as FHA appraisals are not a guarantee that a property is free from defects or problems. One of the most common questions we get asked in this area is, “What can be done about (defective condition X) discovered in my home after my loan closed?” Our answer always involves asking whether the borrower paid for the home inspection or simply relied on the FHA appraisal to indicate that the home was potentially “approved” | more...

 

FHA Loan Appraisal Requirements and State/Local Code

Recently we received a question in the comments section about FHA requirements for homes served by wells. The reader want to know if a “shallow well” was permitted. FHA loan rules do address an aspect of this reader question, stating that for existing construction the well must deliver a specified amount of water: “Existing wells must deliver water flow of three to five gallons per minute”. For new construction, FHA loan requirements state, “Wells must deliver water flow of five gallons per minute over at least a four-hour period”. But one thing that is very important to keep in mind is that for well water and many other appraisal issues including electrical systems, septic, plumbing and many other features, FHA requirements are not the only ones that must be observed. | more...

 
FHA rehab loan

FHA Loan Questions: The Importance of a Home Inspection

What is the difference between a home inspection and an FHA appraisal of a property to be purchased with an FHA mortgage loan? The appraisal is required, but not as complete as a home inspection (which is optional but vital to being a fully informed borrower). The FHA appraisal only insures the home meets MINIMUM standards and state/local building code. The confusion over FHA appraisals and home inspections is one reason why we sometimes get reader questions like the one that came in recently asking about a roof issue: “I have a question regarding our we bought in August 2014. When we 1st bought the home we were told that the roofing was fixed and replaced 3 yrs before we bought it. Well now we have leaks and mold and | more...