Without a doubt, I encourage all buyers to hire a private inspector to do a home inspection as part of their due diligence in the purchase process. FHA does not require that you do this.
FHA will require that an approved FHA appraiser visit the property to do the appraisal. Part of that appraiserâ€™s job is to do a brief inspection. This does not, in any way, substitute for the private inspection. The appraiser is hired by FHA to perform an inspection to protect the lender. This inspection and appraisal generally takes less than 30 minutes. Some FHA appraisers have no building, contracting, or inspection background other than the brief training they receive through FHA. I have fought a few battles with FHA when I believed their appraiser lacked competency. Other FHA appraisers/inspectors are well trained.
If a property needs repairs that will be under 35K, consider a 203K streamlined loan. This provides for the cost of the repairs, and the appraisal is performed based upon the value after the repairs. Speak to a Realtor experienced with FHA, and particularly 203K loans to help you navigate the waters.
Deborah Madey - Broker
Peninsula Realty Group
732 530 7755 Main
732 530 6350 Direct