It’s a common question many home buyers ask. And those who don’t ask have likely thought about it… Is a home inspection required for a mortgage?
Well, it depends. One of the determining factors is the type of mortgage you’re seeking. In other words, is it one of the three most commonly used loans for purchasing a home – VA, FHA or Conventional? Another factor is the specific bank who will be processing your loan. Below, we’ll discuss a few situations where a home inspection is required for a mortgage.
After you’ve chosen an FHA loan and your purchase offer has been accepted by the home seller, your mortgage lender will send out an FHA appraiser. Though the FHA appraisal differs from a home inspection, it’s helpful to know what the appraiser is looking for in order to better understand why an inspection would be helpful.
Aside from assessing the property to determine its market value, an appraiser also looks closely at the condition of the home. In this case, the FHA appraiser must follow the health and safety guidelines set forth by the HUD (department of housing and urban development). The HUD’s primary concern is the safety of all new homeowners. Peeling paint, loose handrails or a roof that needs immediate repair/replacement are a few of the warning signs your appraiser is looking for.
If you decide to go with a VA loan, you’ll find the appraisal process is quite similar to an FHA loan. During the appraisal, market value will be determined using comparable properties within the neighborhood. Additionally, the VA appraiser is keeping an eye out for any potential issues surrounding the safety, sanitation and structural integrity of the home. Within these three main categories is a massive list of items the VA appraiser must check.
Unfortunately, VA loans aren’t available to everyone. To be eligible, you must be a veteran, active duty service member, National Guard member or reservist and also meet the basic requirements of the Department of Veterans Affairs.
The Conventional loan is last but not least! It also happens to be the least stringent. As with every loan, the bank appraiser’s top priority is how much the home is worth. Although the condition of the home remains a factor during a conventional appraisal, in reality, the appraiser is most concerned with how the condition relates to the value of the home.
Regardless of whether or not a home inspection is required for a mortgage, it ALWAYS makes sense to have one performed. At Radiant Property Inspection, we offer many home inspection options to fit your needs, including: new home, builder’s warranty, commercial property, wind mitigation and more! To schedule your appointment, please call (813) 839-8416.