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FHA Home Inspection Requirements

Wednesday, May 4th 2011. | Home Appliance

FHA Home Inspection Requirements – Thinking about obtaining an FHA home loan? If therefore, you wish to be told the maximum amount as you’ll concerning FHA mortgages and residential inspection necessities before you start the method.

About FHA Mortgages and Home Inspection Requirements

The Federal Housing Administration (FHA) was created in 1934 to permit a lot of Americans to realize the dream of homeownership. Since their inception, FHA mortgages have enabled Americans to buy homes at a rate that’s incomparable to the other country within the world. If you’re considering an FHA mortgage, you’ll ought to study up on FHA mortgages and residential inspection necessities.

 

FHA Mortgages

FHA does not give loans directly. Instead, they assist bowers in getting a loan and insure the loan to make lenders more comfortable. This makes it much easier to qualify for a conventional mortgage. Lenders know that if you default on the loan, they will receive some form of payment from FHA.

FHA mortgages are perfect for people who have less than perfect credit. If you do not qualify for a conventional loan because of your credit history or lack of it, you may qualify for an FHA loan. There are also several programs specifically designed for low to moderate-income families. With these FHA loan programs, borrowers can take advantage of low interest rates and low monthly payments. Down payment requirements are also kept to a minimum. In most cases, borrowers pay only 3% at closing or wrap their closing costs into the mortgage.

To qualify for an FHA mortgage, borrowers must:

  • Have a positive credit history spanning the last two years.
  • Show consistent or increasing income.
  • Have a steady employment record (two years or more with the same employer is perfect).
  • Have no bankruptcies in the last two years.
  • Keep the mortgage payment at approximately 30% of their gross income or less.

To learn more about FHA mortgages and to estimate your monthly mortgage payments, check out this FHA Mortgage Calculator

Home Inspection Requirements

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.

 

Source : LoveToKnow

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