What is the FHA? The Federal Housing Administration (FHA) is an agency of the U.S. Department of Housing and Urban Development (HUD). If you are new to this, FHA stands for Federal Housing Administration. The FHA was established in 1934 as part of the National Housing Act.
The FHA processes loans to people who want to buy houses. This government-sponsored agency helps people buy homes with low down payments and credit scores.
To grant these loans, FHA requires a home inspection in Houston, TX, before its approval.
Why Does FHA Need A Home Inspection?
The Federal Housing Administration (FHA) is a U.S. government agency that helps provide mortgage insurance to people who would otherwise not be able to afford a home.
The FHA requires all homes purchased with an FHA loan to pass a home inspection in Houston. This inspection differs from a regular home inspection and is known as an appraisal. An appraisal is done to ensure the home meets the minimum property standards for the area, and the inspection ensures there are no structural or other hazardous problems.
The FHA requires that the home be inspected, appraised, and passed by a qualified professional before a loan can be approved.
There is a specific requirement checklist to be passed before loan approval. This checklist includes the basics, such as drinking water, electricity, heat, etc.
A Home Inspector in Houston Assesses the Following Things Required For An FHA Appraisal:
- Fire protection systems
What Are The FHA-Approved Home Inspector Qualifications?
The U.S. Department of Housing and Urban Development (HUD) regulates the FHA-approved qualifications for home inspectors in Houston. The qualifications include a four-year degree in construction or engineering and a minimum of 3 years of experience in construction or engineering. In addition, most states require a state-specific requirement for an additional two years of experience in construction or engineering.
Why Do I Need A Home Inspector?
Home inspectors are trained to help homeowners identify potential problems and take appropriate action. When it comes to the selection of an experienced home inspector, the benefits are immense. For one, they can give you peace of mind that your home is in good condition, so you don’t have to worry about unexpected costs or repairs. They also offer services such as inspections and reports that help you understand the current state of your property, making it easier to make decisions on how to maintain and care for your home. The most common benefit of a home inspection is peace of mind. A quality inspection will save you money and time in the long run by identifying issues before they become costly problems.
FHA requires home inspections because the lenders want to ensure they are not investing in a money-draining pit. The lender wants the buyer to pay back monthly installments on time. Any hidden problems that deviate a homeowner’s finances towards unexpected payments could affect timely payments and the lender and the buyer.
In the case of an FHA home inspection, it does not uncover hidden issues in a home; the professional visits the house for an assessment of the condition of the building. The inspection is designed to identify any defects in the soft structure and/or systems that affect the value or safety of the property. It also helps to protect against hidden defects in later years when maintenance costs may be higher than initially anticipated. The primary role of a home inspector at this time is to inspect the home and clear it for an FHA home loan to be expedited.
Is There A Difference Between An Unlicensed and A Licensed Inspection Company?
This question has been asked by new and old homeowners alike. Initially, the two may appear to have a slight difference. However, a notable difference between a licensed and an unlicensed home inspection company exists. Licensed companies have a proven track record of providing quality services. To get an inspection company license, a company must meet specific requirements at the state and federal levels. This includes having enough capital to invest in the business, being able to afford licensing costs, and complying with regulations; hence licensed companies to have their name and credibility at stake.
Licensed companies have more access to qualified inspectors who can do inspections on their own without being dependent on subcontractors. This advantage may also allow them to offer their services at lower rates and with more free perks and guarantees than unlicensed companies.
Can I Use An Unlicensed Home Inspector?
Using an unlicensed home inspector is not advisable because an FHA-approved lender will not support the inspection and the loan. You can find out whether the person you hire is licensed by checking with the state licensing board. The person you hire should be able to provide a license number; if they don’t, it means they are not licensed. Beware, an unlicensed home inspector is not qualified to perform the FHA inspection, which can lead to a homeowner being scammed. Many states have specific laws for how inspections are conducted and what qualifications an inspector must have to do the job.
To become licensed in the state, an inspector has to go through a process that requires passing an exam and completing a training course. To retain certification, an inspector must also continue ongoing education and training.
Steps To Make Sure the Home Inspector is Licensed and Qualified For the Job
Before hiring any inspector for loan approval, it is essential to ensure that they are licensed and qualified by FHA. Look for an appraiser on the National Registry who conducts FHA-insured mortgage appraisals.
You can do a few other things to ensure that the third party is licensed and qualified for the job.
- Check if the appraiser has a license in the state where they will be working.
- Check if they have an active business license with their city or county office.
- Ask for references from past clients or employers who can speak about them as workers or contractors.
Are Unlicensed Inspectors Regulated in Any Way By the State or Local Government?
Inspectors should be diligent and ensure compliance with laws. There are many states or local governments that do regulate inspectors on their own accord. In case a state does not regulate inspectors, they are not scot-free and still need to comply with some basic guidelines set by the state. The state must also ensure fair practice and that all practicing inspectors have their licenses renewed.
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