A home is one of the biggest investments you will ever make in your lifetime. This is why making sure that the home you intend to buy is in good condition is so important. Though all FHA mortgages require a home appraisal, they do not require a home inspection. Many borrowers confuse the two and mistakenly assume that an FHA appraisal is a guarantee that the house is in good condition. In actuality, an FHA appraisal is for the lender, not the borrower. If you want to avoid buying a lemon, you will need a home inspection.
The FHA does not currently have home inspection requirements. Even so, a home inspection is in your best interests; it is a very good idea to get one prior to making a home purchase. A home inspection will:
- Evaluate the structure and construction of the home.
- Estimate the remaining useful life of the home’s structure and mechanical systems.
- Identify potential problems and items that will need to be repaired and/or replaced.
Once your home has been inspected, you will receive a written document that details all findings. This document is very important and can protect you from making a poor investment. Remember, FHA provides insurance for lenders, not borrowers. They do not guarantee anything and they will not buy the home back from you if you find a problem after closing. This makes the small amount that you will have to pay for a home inspection well worth the money.
Now, after having said all that, FHA does require that the property meet certain broad, but reasonable property condition standards. But then, so should you.
If you are buying a home, get it inspected. If you could hear some of the horror studies, you wouldn’t stop to blink about getting one. Get an inspection even if you are buying a “newly” constructed home.
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{ 2 comments… read them below or add one }
i bought a new home and did not get an inspection. i was a 1st time buyer and knew nothing about inspections. no one ever mentioned it either. sure enough, problems were uncovered a few years later. something an inspection would have quickly found. u should get inspection if you are buying any kind of home.
@Jessica – Well said and good example Jessica. In a new home, there can be many instances of unintentional haphazard construction – especially given how quickly some homes are built.