Required Home Inspections For Federal Housing Administration (FHA) Loans

Required Home Inspections For Federal Housing Administration (FHA) Loans - A home inspection always makes sense, whether you are the buyer or the seller. For most homebuyers, an inspection is optional; however, when the purchase is made with an FHA loan, it is mandatory. First-time homebuyers gravitate toward FHA loans simply because they are easier to get and offer a few advantages over conventional mortgages. The FHA will insure loans for borrowers with a moderate amount of income and for first-time buyers. In order for a home to qualify for an FHA loan it must pass a full inspection, which rules out the fixer-upper house.

The Importance Of Home Inspections

Buying a home is the largest investment most people will make, and they want it to be based on the condition of the structure and not solely on its appearance. The old saying that warns people not to judge a book by its cover is certainly true when choosing a home. The house that looks beautiful with a fresh coat of paint, new carpets, and designer window treatments may be hiding costly damage. The job of the certified home inspector is to search for problems in the insulation, roof, plumbing, and electrical wiring. He or she will also look for signs of leaks and mold. Most of what the home inspection covers are issues that are not visible to the average homebuyer, and that is why the inspection is required with any FHA-insured loan. A home may appear to be ready for a family to move in, but the result of the inspection will reveal the general condition of the structure and whether or not it will be considered acceptable under FHA requirements.

For an FHA loan, the property you’re buying must pass certain inspections and meet HUD’s Minimum Property Standards (MPS) to ensure it’s safe, sound, and secure. FHA doesn’t require a “special” or “extra” inspection in the same way some people think — rather, it requires an FHA appraisal that includes a basic property condition check, plus any additional inspections if issues are found.

Here’s the breakdown:

1. FHA Appraisal (Required)

• Purpose: Determines the property’s market value and whether it meets HUD’s minimum standards.
• Who Does It: FHA-approved appraiser.
• Focus Areas:
  • Safety — No hazards that could endanger occupants.
  • Security — Property must be accessible and reasonably secure.
  • Soundness — Structure must be free from significant defects.

2. Minimum Property Standards Checklist

During the appraisal, the appraiser will look for:

• Roof: No leaks, at least 2+ years of remaining life.
• Foundation & Structure: No major cracks, water damage, or instability.
• Utilities: Functional heating, plumbing, and electrical systems.
• Water Supply & Sewage: Safe drinking water; proper drainage/septic.
• Safety Features: No broken windows, missing handrails, or trip hazards.
• Pest Damage: No evidence of active termite infestation.
• Lead-Based Paint: Peeling paint must be repaired (especially in pre-1978 homes).
• Access: Safe, all-weather road to the property.

3. Additional Inspections (If Needed)

If the appraiser sees an issue, FHA may require special inspections before loan approval, such as:

• Roof Inspection — if roof condition is uncertain.
• Well/Water Test — if water source is private.
• Septic System Inspection — if on private septic.
• Pest Inspection — if termite damage suspected.
• Structural Inspection — if foundation issues suspected.
• Environmental Hazard Testing — e.g., radon, mold, asbestos.

4. Buyer’s Home Inspection (Strongly Recommended)

• FHA does not require a buyer’s independent home inspection — but it’s highly encouraged so you get a more detailed view of the property’s condition.
• A home inspection is different from the FHA appraisal: the inspection is for your benefit, the appraisal is for the lender’s compliance.

✅ In short: For an FHA loan, you must have an FHA appraisal that checks the home against HUD’s Minimum Property Standards. If the appraiser flags issues, specific follow-up inspections will be required before closing. While not required by FHA, you should also get your own home inspection for peace of mind.

FHA Property Requirements Checklist

The Cost And Value Of A Home Inspection

The cost of a home inspection will vary in different states, but you can expect it to be a few hundred dollars. Don't let the cost concern you. You are about to make the largest investment in your life, and a home inspection is similar to insurance. It will protect your money from being lost on a house needing costly major repairs. The inspection is a small investment to protect your future and that of your family.

Average Cost of Home Inspection in 2025 by Region

The FHA requires the inspection to insure their investment and to help you obtain a quality home to enjoy for many years. After the completion of the inspection, you will be provided with a report outlining the condition of the home and suggesting any repairs that would be required for the home to meet current standards. If the repairs are minimal, the seller may be willing to take care of them in order to close the deal. Negotiation can be a powerful tool when the dollar amounts are not too large. Occasionally the problems with a house are just too costly to consider, and the FHA will not write a loan for the purchase.

Keep your eyes open for signs of damage when house shopping, and don't let a pretty exterior fool you. A house inspection is for your benefit as much as for the FHA approval.

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