Just wondering, It was brought to my attention today that banks are looking for VA and FHA certified home inspectors… I am wondering if there is a special class to cover this or if i have been taking classes to cover those two areas. I know that most of the information needed has been in the courses but was unsure if special requirments were needed in ohio for these two loan types. can some one help?
Agreed…
There are many consumers that also believe there are FHA/HUD (203k) certified contractors, that’s not true either.
Many realtors and clients are confused, since when is a FHA appraisor a home inspector? What is a FHA inspection? and who are these inspectors? Recently I was doing a inspection in the Chicago area and a FHA appraisor was on the side, he was telling my client things normally not mentioned by a appraisor. The client was confused and was questioning me on weather I knew what I was doing, all based on what this appraisor had told her. I reminded her that I was a home inpsector, not an appraisor, and that if he is qualified to make opinions on the property condition so be it, but not many appraisors I know are licensed home inspectors. It turned out that the problem in question had to do with a water heater, and what this appraisor had told the client was that a TPR valve discharge pipe is not needed, those valves never open, and that where the water line connections were, a dielectric union was not needed where copper and galvanized pipes were connected. I informed the client that these items are required one for safety and the other to prevent future problems from arising. Also I mentioned to the client that appraisors are appraisors, and the job they do is to inform you of what the property is worth, not to make comments or give opinions on systems and components on the property.
Due to the new national HAACP (I believe) rules, banks are basically in charge of the appraisers. Since appraisers here in Kansas are exempt from any home inspection laws, rules, regluations, insurance, education requirements, etc. (as in some other states also) they are informing their “bank clients” who hire them about home defects. They have been doing this for years. Since they work for the “banks” they explain defects, whether or not they are important, to the home buyer as to not kill any real estate deal, so the banks can make money off of the unsuspecting home buyer.
I wish lawmakers nationwide would close their pockets, take off their blinders, and see what is really happening to the real estate industry as a whole.
Contractors giving free home evaluations (roof, electrical, chimneys, plumbing, HVAC) all for repairs, needed or not. RE’s not even recommending home inspections, but are suggesting their “contractor” buddies. Shoot, let the appraiser do the inspection, you are paying for him anyway. Let my Uncle Bob do a walk-through for free, as long as you buy the house from me.
The life of our inspection industry as we know it, is very limited.
>>>Many realtors and clients are confused, since when is a FHA appraisor a home inspector? What is a FHA inspection? and who are these inspectors?>>>
About six or seven years ago there was an FHA rule change that required the Appraiser to essentially “play home inspector” during the (bank) appraisal and made them start running water, look under sinks, test GFCI’s, guestimate roof age, etc.
95% of the Appraisers absolutely hated it. A few relished the opportunity to weild even more power (they thought they had) over the Realtor and the sales transaction.
It was a real friggin’ mess.
Two years ago FHA backed off this for the most part, and even stopped requiring GFCI’s be installed (like they demanded for over 15 years previous), focusing essentially only on lead (peeling) paint issues and hand railings but letting Appraisers ignore everything else.
Unless you’re a “Licensed Pest Control Professional” though a Bank won’t usually take your termite report on a FHA or VA mortgaged sale, requiring a real termite guy to do a report. At least that was how it was up in CT.
They (the FHA/Bank underwriter) do like to see a “3 to 5 year life” for roofs still somewhere in writing. Usually though, unless it’s really shot and shows up bad in the Appraiser’s photos it isn’t an issue.
Over the years I’ve personally done several “scrape & paint” deals to satisfy Appraisers, repaired some siding, installed several hand railings and more GFCI’s than I can count - even had a couple driveways repaved and once fixed an undermined and cracked garage floor so we could go forward to closing.
Appraisers can be a real pain in the rear…
Al in TN
I believe this may be where the confusion stems from… (HVCC)
https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf
This issue has already been addressed. FHA/HUD does not perform home inspections for purchase of private property. FHA/HUD has appraisers that insure that the home is in good condition for the market it is in. This is performed for FHA/HUD not the home buyer. This website explains this clearly on page 5 http://www.hudclips.org/download/HUD-92800.5B “For Existing Houses: If you are buying a house which has been lived in before, be sure the house is in acceptable condition before signing a purchase contract. An appraisal is made only to estimate the value of the property. This appraisal does not guarantee that the house is free from defects. HUD cannot give you money for repairs so you must protect yourself before you buy. You should
inspect the property carefully. If you need help, a private home inspection service can be hired in many localities”.
In addition to the Lead Disclosure one must sign in order to get a FHA or VA mortgage (seriously, they won’t close the loan without one being signed by all parties, including any agents involved), and the Amendatory Clause where everyone has to agree that the property will appraise out or no deal, there is also another page where it says in big, bold, capital letters GET A HOME INSPECTION (because we [FHA] ain’t warrantying the house, only the mortgage) that the buyer must sign also.
Al in TN