I'm buying a house thru FHA and am a little worried about the inspection process. The house needs minimal work.
2006-12-21 02:02:24 · 3 answers · asked by logonafire 1 in Business & Finance ➔ Renting & Real Estate
FHA is there to protect the First-time Homebuyer - the inspection process is for your benefit. The seller is responsible for making any of the repairs that may be demanded by FHA - not the buyer. Don't worry, since you will not be required to do or pay for anything other than the price of the house itself. Enjoy the fact that you will only have to come up with a 5% downpayment, and not the standard 10%.
2006-12-21 02:06:55 · answer #1 · answered by SmartAleck 5 · 0⤊ 0⤋
If you mean that you're buying a HUD foreclosure, then here is how the inspection works.
For owner occupants (buying the house to live there, not as an investor to rent it out or flip it) you may have an inspection within 15 days of HUD signing the contract. Your Realtor must request permission, and you must put the utilities in your name for a few days. (shut them off after the inspection and notify HUD that they're off so they can re-winterize the house).
If the house has a major problem in one of these four areas, you may back out of the deal. Roof, foundation, major plumbing (not leaking faucets or missing toilet), HVAC system.
For investor buyers, you may still have an inspection, but it does not give you the right to back out. It just gives you a chance to have a good "to do" list as soon as you close.
*** If you meant that you're buying a house (regular listing) using an FHA loan, then HERE is what you need.....
*** The FHA appraiser ****
IS NOT YOUR INSPECTOR.
Your Realtor must give you a form and you sign it prior to signing a contract that outlines the diference between the appraiser and the inspector. It is a notice from HUD advising you to have your own inspection on the house.
As far as repairs are concerned, that gets addressed in the contract the same as with any type of financing.
(FHA down payment is 2.25%, FHA requires the buyer to invest at least 3% of their own money to close - can be a gift from parents or a non-profit)
2006-12-21 02:19:03 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
FHA appraisals are more stringent than your conventional appraisals. Why are you choosing FHA? just curious....
2006-12-22 05:25:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋