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  1. #1
    Dave Creighton's Avatar
    Dave Creighton Guest

    Default FHA Inspection Help

    I am trying to purchase my first home. The FHA inspector is holding up the appraisal because of 2 issues.

    1.The water is not turned on in the apartment above the garage. We are not planning on using the apartment, so I would turn the water back off right away anyway.
    2. He cannot get into the crawl space under the house. On my original house inspection, they concluded and noted that some duck work would need to be better secured. I am planning on having this done the first time the furnace is cleaned for winter.

    I guess my question is why would this hold up an apprasial? On his original check of the house, he requested about 5 or 6 things to be done and they are all complete and we are OK with them.

    Any opinions would be appreciated.

    Thanks !!!!

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  2. #2
    Join Date
    Oct 2003
    Location
    Rockwall Texas
    Posts
    4,519

    Default Re: FHA Inspection Help

    You got to remember this is not your house as of yet and if those items your inspector wants to be accessible or repaired are not its probably not going to be your house.

    They have standards to have to meet and could really care less after you close on the house. Only what is there now to be able to meet the loan requirements.

    Sux, I know.

    rick


  3. #3
    Dave Creighton's Avatar
    Dave Creighton Guest

    Default Re: FHA Inspection Help

    Thanks Rick- I guess where I am confused is the difference between an inspection and an appraisal. To me an appraisal should be just that, what the property is worth, and an inspection is to find things that are wrong with the property.


  4. #4
    Join Date
    Mar 2007
    Location
    Spring Hill (Nashville), TN
    Posts
    5,847

    Default Re: FHA Inspection Help

    Quote Originally Posted by Dave Creighton View Post
    Thanks Rick- I guess where I am confused is the difference between an inspection and an appraisal. To me an appraisal should be just that, what the property is worth, and an inspection is to find things that are wrong with the property.
    An appraisal is for the bank and is all about the valuation of the property, this includes the overall condition with an FHA appraisal.

    An inspection is for you the buyer. It is all about the condition of the home and has nothing to do with the valuation of it.

    The kicker is with an FHA loan. As Rick said, they have guidelines (HUD) for the habitability of the home and they must be met.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  5. #5
    Ted Menelly's Avatar
    Ted Menelly Guest

    Default Re: FHA Inspection Help

    A very big majority nowadays is FHA inspections. As in a regular home inspection but FHA wants to see it to know if you are getting into a money pit and will not be able to afford the home. If FHA wanted to see the report on the home inspection before the appraisal then that is exacly what they are looking for.

    In most instances there can be money set aside for these repairs at the closing table IF there is money somewhaere to set asside.

    In the case of the crawl not being accessible then there is your biggest can of worms. No one including you , the inspector or the bank knows anything of what is going on in the crawl space, which could be a serious amount of items. If someone owns this home and not the bank then they are going to have to make it accessible. If they do not the likelyhood of selling the home is nill do to the fact that the vast majority of loans today are FHA.

    Even if it is a bank owned property then eventually the bank is going to have to do something about it. No one wants to buy a home, especially you, if they do not know what is going on in the crawl. Plumbing leaks, bad duct work, rot, mold, bad electric, termites etc etc etc.

    You cannot get in. You don't want the home, period.


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