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FHA Home Appraisal vs a Home Inspection

By
Real Estate Agent with Renaissance Realty Group of Keller Williams Atlanta Partners

A home inspection may not be required for an FHA loan, but it can save homeowners money in the long run 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

Posted by

If you or someone you know is thinking of buying or selling a home have them give me a call .. we will get it done ...right 

Eric Reid 

Associate Broker

Keller Williams Atlatna Partners
Team Leader 
Renaissance Realty Group

Comments(1)

Bill Cobb Appraiser
Accurate Valuations Group, LLC - Baton Rouge, LA
Greater Baton Rouge's Home Appraiser

Thank you so much for this explanation.  So many homebuyers are so confused about this topic.  I was just in Lawrenceville, GA on Saturday for John Holbrook's New Fannie Mae Addendum 1004MC 7 Hour Training At 1755 N Brown Rd Office Suites Plus near the Discover Mills Mall.   Wow!   That's a very nice, newer area.   The McDonalds on Old N Peachtree Rd near N Brown Rd is the fanciest McDonalds I've ever visited for a quick Breakfast.   Thanks Again!  Bill Cobb in Baton Rouge, LA http://www.appraiserbloggingrewards.info/  

Mar 01, 2009 02:34 PM