I am also an approved FHA Fee Inspector.

In Illinois, realtors often advise clients who are purchasing existing homes that they need an FHA Inspection when they actually mean an apprasial. The appraiser determines the value of the home and identifies obvious items that don't meet FHA criteria and requires them to be fixed. Once they are fixed either the appraiser can recheck them or the lender hires a Fee Inspector to ensure the corrections were made.

Fee Inspectors are also used for new homes that were not built initially under FHA supervision and also for 203k loans.

A Home Inspector in Illinois must be State Licensed and gives you an evaluation of the of all of the systems that make up the home.

In Illinois to be an FHA Fee Inspector you must be a State Licensed Home Inspector and have a minimum of 3 years of hands on construction experience.

Good Evening Folks,

I'm a registered FHA Fee Inspector. I've performed hundreds of FHA inspections over the past several years. FHA Inspectors have nothing to do with FHA Appraisers, we are completely separate and perform entirely separate duties with regard to the FHA loan process and or transaction. There are two primary types of FHA inspections:

1. 203K inspections for FHA loans that are being used on properties that need repair and or remediation prior to close. The FHA inspector will inspect and verify the repairs have been made per underwriting funding requirements prior to close of escrow.

2. FHA Compliance inspections. These inspections pertain to new home construction where FHA loans are involved. The home cannot close escrow with out a final compliance inspection by an FHA registered inspector.

Again, neither of the required inspections involve FHA Appraisers...

The difference is night and day.

The FHA inspector is an appraiser sent to determine the value of the home and look for significant deficiencies according to FHA criteria such as obvious mold growth, chipped paint on windows older than 1978, improper grading of the landscape, open electrical boxes, etc. They don't inspect or test the house. If they find defects they require repairs which they or a fee inspector re-inspects to ensure were made correctly.

A State licensed home inspector evaluates the entire home from the roof to the foundation and tests the mechanical systems inside. An inspector who is also an approved FHA fee inspector, like myself, will know what the appraiser is looking for and be able to give you a heads-up.

The FHA appraiser is primarily looking at the property to determine the value based upon the home's present condition, and to make sure there are no significant issues with the home that might affect the health or safety of future occupants. For that reason, while the FHA appraiser will check certain items, they are generally more concerned about minimum standards for particular items (electric service, furnace, roof condition, etc) they are not there to evaluate the overall condition of the home, and will usually not put a house through it's paces. FHA has a form they request buyers to sign that informs them that the FHA appraisal is, in fact, NOT an inspection. The form encourages you to hire your own home inspector.

Here's a link to that form:
http://www.hud.gov/offices/adm/hudclips/forms/files/92564-cn.pdf

A home inspector will run all the systems and mechanicals, evaluate all the components of the home on your behalf, make suggestions for repairs and provide you with valuable advice about how you can maintain and upkeep the home after it's yours.

Best of luck on your house hunt, and if you need assistance, I'd be happy to help!

Kim Noonan
RE/MAX All Properties
kimnoonan@sbcglobal.net

Bill, the FHA inspection is actually an appraiser who does a visual check of the property to determine value as well identify health or safety items. They are not home inspectors so it is recommended you hire your own inspector who is trained to look more in-depth at the home you are purchasing. The home inspector is hired by you to help identify future expenses you may incur. The FHA inspector is hired by the bank (at your expense), to help protect their investment. Hope that helps

Anne Vodicka
Baird & Warner
anne.vodicka@bairdwarner.com

Yes, there is a big difference. I always recommend that you hire a state licensed inspector as they will look at a lot more than electrical, roof, plumbing, etc. They will look for major problems but also let you know about a whole lot of other things that may be minor but things you should be aware of.