March 14, 2011
In our last blog post we discussed FHA appraisals and when an automatic inspection is not required in cases such as wells or possible termite problems. A change in the rules in 2005 dropped the requirement for automatic inspections for termites except as required from the local or state authority.
Well water issues were similarly changed except where governed by state or local law or the presence of qualifying factors such as nearby industry or agriculture.
But in some cases automatic inspections are required no matter what. Any condition that could be a danger to the FHA loan applicant once they move in must be reported and an inspection of the property must be conducted if the buyer wants to move ahead with the sale. According to FHA requirements,
“…the lender will require an inspection of the condition to determine whether repairs are necessary to mitigate or resolve the problem.”
Examples that would force an inspection include an FHA appraiser observing
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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