An FHA inspection is an in-depth analysis of the home. It is looking for
structural issues, hazards, and makes sure the home is in good livable condition while meeting the FHA minimum property standards
. The FHA inspection also verifies the true market value of the home.
What do FHA home appraisers look for?
Checklist of FHA appraisal requirements
Must have an undamaged exterior, foundation and roof
.
Must have safe and reasonable property access
.
Must not contain loose wiring and exposed electrical systems
.
Must have all relevant local utility hookups
, including gas, electricity, water and sewage.
Is it hard to pass a FHA inspection?
To pass an FHA inspection, however,
your foundation must be free of significant cracks as well as ongoing water damage or evidence thereof
. … FHA inspectors look up as well as down. Your attic and roof need to be in good repair. An FHA inspection will require that you fix any water damage or holes in the roof.
What kind of inspection does FHA require?
While
FHA does not specifically require a home inspection
, the mandatory appraisal does include a basic assessment of the property. An FHA-approved appraiser is primarily focused on determining the market value of the house.
What happens if House fails FHA inspection?
When they see something that doesn’t meet FHA guidelines, they note it in the FHA appraisal.
Until the issue is resolved, the lender won’t issue final approval for the loan
. … Either way, someone has to fix the issues or there will be no FHA loan.
Why do sellers hate FHA loans?
Both reasons have to do with the strict guidelines imposed because FHA loans are government-insured loans. … The other major reason sellers don’t like FHA loans is that
the guidelines require appraisers to look for certain defects that could pose habitability concerns or health, safety, or security risks
.
Why are FHA loans bad?
FHA loans often come with higher interest rates than other loans, simply because they’re
riskier
. Since their credit score requirements are lower, there’s a bigger chance the borrower will default on the loan. To protect themselves from this added risk, lenders will charge a higher interest rate.
How long does it take for an FHA appraisal?
An FHA appraisal and FHA inspection can take
several hours
. Because the process is more involved than a standard appraisal inspection, the report may take several days (or longer) to get back. An FHA appraisal is usually good for 120 days, but you may be able to get a 30-day extension in some cases.
How long does an FHA loan take?
Average Closing Time for an FHA Loan
It takes
around 47 days
to close on an FHA mortgage loan. FHA refinances are faster and take around 32 days to close on average. FHA loans generally close in a very similar timeframe to conventional loans but may require additional time at specific points in the process.
Are FHA appraisals more strict?
FHA mortgage appraisals are more rigorous than standard home appraisals
. Whether you’re looking at refinancing to an FHA loan, buying a house with an FHA loan or even selling to someone who will be using an FHA loan to fund their home purchase, you’ll want to understand what FHA appraisals entail.
Who qualifies for an FHA loan?
- Have a FICO score of 500 to 579 with 10 percent down, or a FICO score of 580 or higher with 3.5 percent down.
- Have verifiable employment history for the last two years.
How much does an FHA appraisal cost?
An FHA appraisal costs an average of
$300 to $425
, according to HomeGuide.
What fees does the seller have to pay on an FHA loan?
FHA loans allow sellers to cover closing
costs up to six percent of your purchase price
. That can mean lender fees, property taxes, homeowners insurance, escrow fees, and title insurance.
Who pays for FHA required repairs?
In order to get a credit for the repairs,
the seller
must agree to pay the money for the repairs. Some sellers don’t want to be bothered with the work, but will pay for the repairs. Your lender will hold the funds in an escrow holdback account.
Can a seller back out of FHA?
If a seller refuses to make repairs,
the FHA contract can be canceled
. Other options include the buyer assuming responsibility for repairs.
Can a seller refuse FHA loan?
There’s no law that can compel a seller to accept FHA financing
, though sellers artificially limit their buyer pool by doing so. Buyers, though, can help their cause by agreeing to an “as is” appraisal, for one. They might also consider asking for less in seller contributions to help with closing costs.
