Thread: Need a quik reply (VA question)

I got a buyer that wants to get a home inspection and he mentioned that his realtor said he needs to have a VA approved inspector do the home inspection. (He is getting a VA loan) Is this true? I told him I know he will have to have a VA approved appraiser do the appraisal for the VA loan and they may follow up with a VA approved compliance inspector should the appraiser note any defeciencies. Can anyone shed some light for me? Can the buyer hire whoever they would like for the home inspection or are they tied to a VA inspector? THANKS!

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Lanny,

Have not heard that one yet, but I really don't know if I have ever inspected for a VA loan. It will be interesting to read what others post. Maybe you can get in touch with the lender.

Originally Posted by Lanny Freng

I got a buyer that wants to get a home inspection and he mentioned that his realtor said he needs to have a VA approved inspector do the home inspection. (He is getting a VA loan) Is this true? I told him I know he will have to have a VA approved appraiser do the appraisal for the VA loan and they may follow up with a VA approved compliance inspector should the appraiser note any defeciencies. Can anyone shed some light for me? Can the buyer hire whoever they would like for the home inspection or are they tied to a VA inspector? THANKS!

Realtor folklore!

The only time this would be true is if the house was being built and you were inspecting to VA (like HUD) standards while it was being built.

thats what I thought. I went onto VA website and it stated "try to attend the home inspection with your preferred inspector". Scheduled it up for Weds. Thanks

The VA will send an inspector to review the property. He will be there for the VA's interest and will not usually allow the buyer to be present during the inspection. He may determine that repairs need to be made prior to the VA approving the loan such as the roof, etc. The VA inspector is now also required to enter the attic space (since 89) to determine the serviceability of the attic structure. The client will most likely not get the report though if the VA determines that repairs must be made they will see what was required of the buyer. The buyer can refuse the repairs which will negate the VA approving the loan and the buyer can seek other financing or back out of the purchase.
This person should not be confused with the home inspector, the VA inspector is not there for the buyers interest. The VA also does not approve private inspectors to be hired by the buyer for thier interest. The agent is misinformed and should be referred to thier broker for further information.

A VA inspector is also known as the panel inspector. Mostly these inspectors inspect 203K loans and 203B loans (residential and commercial improvement/construction loans).

Some lenders are very strict in their guidelines and require a fee panel inspector when they mention a VA inspector.

HUD, who sets the criteria is with the panel inspectors also publishes what is called a mortgagee letter. These mortgagee of the letters serve as guidelines and/or modifications to existing documents (HUD clips).

Some of these mortgagee letters, clearly override a mandated fee panel inspector, however you must cite the mortgagee letters as well as inspection criteria's as outlined within specific HUD documents.

We've been doing these inspections for ever it seems. A great source of revenue.

Additionally, your inspection reports must contain the following paragraph:

SECTION 1010, OF TITLE 18 U.S.C., “FEDERAL HOUSING ADMINISTRATION TRANSACTION”, PROVIDES: “WHOEVER, FOR THE PURPOSE OF INFLUENCING IN ANY WAY THE ACTION OF SUCH ADMINISTRATION MAKES, PASSES, UTTERS, OR PUBLISHES ANY STATEMENT, KNOWING THE SAME TO BE FALSE SHALL BE FINED NOT MORE THAT $5000.00 OR IMPRISONED NOT MORE THAN TWO (2) YEARS, OR BOTH. “OTHER FEDERAL STATUTES PROVIDE SEVERE PENALTIES FOR ANY FRAUD AS INTENTIONAL MISREPRESENTATION MADE FOR THE PURPOSE OF INFLUENCING THE ISSUANCE OF ANY GUARANTY OR INSURANCE OR THE MAKING OF ANY LOAN BY THE ADMINISTRATION OF VETERANS AFFAIRS.