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Can A Home Buyer Use a FHA Appraisal Instead of A Home Inspection?
I have wrote in the past about the detail of an FHA observation. The FHA appraisal process requires a detailed observation of mechanical systems, (My personal favorite is the reverse feature on an automatic garage door opener.) attic, crawl spaces, electric fixtures, plumbing fixtures, paint surfaces, wood surfaces, safety concerns, etc.. This observation is not meant to be and is not the same as an inspection of these same systems within the home.
We have a significant difference between the detailed inspection made by a Home Inspector and the observation of a FHA Appraiser. The FHA Appraiser has a purpose of determining an opinion of market value, during the house visit the appraiser must verify the operation of some systems. This is done as HUD requires this as part of the scope of work.
Home Inspections are not required to be performed to fund a FHA insured loan, however a FHA appraisal report is required before a FHA Mortgage is insured by HUD. It is important to understand that the FHA appraiser is working on behalf of the bank or mortgage company, while the Home Inspector usually is working for a home buyer. Realtors are usually much more comfortable when a home buyer chooses ... more

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