Are FHA Inspections Hard To Pass?

Are FHA Inspections Hard To Pass?

FHA inspections are more stringent than standard home appraisals and are relatively hard to pass. Whether you are looking at refinancing an FHA loan, buying a house with an FHA loan, or even selling to someone who will be using an FHA loan, you need to understand what these appraisals entail.

Read our analysis and complete study of the FHA loan requirements.

FHA appraisals are harder to pass than conventional loan appraisals. For FHA home appraisals, there is a checklist from HUD the home appraiser needs to follow in order to pass the FHA home appraisal on FHA loans. Otherwise, it won´t pass the FHA inspection, and a re-inspection will be required.

Conventional home appraisals, instead, normally require the value of the property. As long as the property is habitable, it is acceptable to pass successfully home appraisals on conventional loans. FHA loan home appraisals require the property condition to be above average. You cannot have broken glass, and peeling paint, and the roof cannot have a life span of fewer than three years. Conventional loan appraisals are less restrictive than FHA appraisals.

Do a walk-through of the property to look for risks, damaged systems or components, and other quality concerns. Do a dummy FHA inspection to identify and fix all of these issues before the real thing.

After the inspections and appraisals are over and we have agreed on a purchase price and entered the contract to buy the home, it may take up to three months to close on the loan being a month and a half a typical timeframe in my opinion.

To prepare for an FHA inspection, you should make sure that your home is in good condition and free of any major issues that could cause the appraiser to fail the inspection. Here are some common issues that won’t pass an FHA inspection:

• Roofing problems, including leaks, missing shingles, or other damage
• Electrical issues, such as outdated wiring or overloaded circuits
• Plumbing problems, such as leaks, low water pressure, or inadequate drainage
• Structural issues, such as cracks in the foundation or walls
• Safety hazards, such as broken windows or missing handrails
• Pest infestations, including termites, rodents, or other pests

To avoid these issues, you should have your home inspected by a licensed home inspector before the FHA appraisal. This will give you a chance to address any problems before the appraiser arrives. You should also make sure that your home is clean and well-maintained, with no clutter or debris.

or the property to pass. The inspection is designed to ensure that the property is safe, secure, and sanitary, and that it meets minimum property requirements set by the FHA. Here are some of the key criteria that will be evaluated during an FHA inspection:

Structure Quality

The structure of the property must be sound and sturdy. Any safety hazards, such as cracks in the foundation or walls, must be addressed before the property can pass inspection. The roof must also be in good condition and free from leaks.

Safety Hazards

Safety hazards are a major concern during an FHA inspection. The inspector will evaluate the property for any potential hazards, such as exposed wiring, broken windows, or unsafe stairways. Any hazards must be corrected before the property can pass inspection.

Sanitary Conditions

The property must be sanitary and free from any health hazards, such as mold or pest infestations. The plumbing and electrical systems must be in good working order, and there must be adequate ventilation throughout the property.

Livability

The property must be livable and meet minimum property requirements set by the FHA. This includes having a working heating and cooling system, as well as functioning appliances. The property must also have adequate space for living and storage.

Security

The property must be secure and free from any safety hazards. This includes having functioning locks on all doors and windows, as well as adequate lighting throughout the property.

In summary, FHA inspections are designed to ensure that properties meet minimum safety, security, and sanitary standards. The inspection criteria are designed to ensure that the property is structurally sound and livable, and that it meets minimum property requirements set by the FHA. By understanding the key inspection criteria, you can better prepare for an FHA inspection and increase your chances of passing.

Property Access and Location Factors

When it comes to FHA inspections, property access and location factors are important considerations. The accessibility of your property is a key factor that an FHA inspector will evaluate. The inspector will check whether your property has proper access to pedestrians and vehicles, especially emergency vehicles. Your property must be accessible under all weather conditions to pass the inspection.

Additionally, the location of your property is another important factor. If your property is located in an area with heavy traffic, it can be a problem. The inspector will check whether your property has proper access to the main road and whether it is located in a safe area. If your property is located in a flood zone or an area prone to natural disasters, it can also be a problem.

The condition of your driveway is also important. The inspector will check whether the driveway is in good condition and whether it is wide enough for vehicles to pass through. If the driveway is damaged or narrow, it can be a problem. The inspector will also check whether there are any obstacles or hazards in the driveway that may cause accidents.

In summary, property access and location factors play a crucial role in passing an FHA inspection. Your property must have proper access to pedestrians and vehicles, be located in a safe area with proper access to the main road, and have a driveway in good condition that is wide enough for vehicles to pass through. By ensuring that these factors are in order, you can increase your chances of passing an FHA inspection.

FHA Inspection and the Home’s Structure

When undergoing an FHA inspection, the structure of the home is a critical element that is evaluated. The inspector will assess the home’s foundation, roofing, and overall structure quality to ensure that it meets minimum safety, security, and soundness standards. Here’s what you need to know about these areas:

Foundation

The foundation of a home is essential to its structural integrity. During an FHA inspection, the inspector will look for any signs of decay or rot in the foundation. If there are any cracks or other damage, it may indicate a larger issue that needs to be addressed. Additionally, the inspector will check for proper drainage around the foundation to ensure that water doesn’t accumulate and cause damage.

Roofing

The roof is another critical element that is evaluated during an FHA inspection. The inspector will assess the quality and condition of the roofing material, as well as its ability to keep moisture out of the home. If the roof has more than three layers, it may be deemed unsafe and require replacement. Additionally, any signs of damage or decay will be noted and may need to be addressed.

Structure Quality

The overall quality of the home’s structure is also evaluated during an FHA inspection. The inspector will assess the home’s framing, walls, and floors to ensure that they are sound and secure. Any signs of decay or rot will be noted, as well as any issues with maintenance or upkeep. If there are any major structural issues, the inspector may require repairs or improvements before the home can be approved for an FHA loan.

In summary, an FHA inspection assesses the home’s foundation, roofing, and overall structure quality to ensure that it meets minimum safety, security, and soundness standards. If you are preparing for an FHA inspection, it’s essential to ensure that these areas are in good condition and well-maintained. By doing so, you can increase your chances of passing the inspection and securing an FHA loan for your home.

Electrical and Plumbing Considerations

When it comes to FHA inspections, electrical and plumbing considerations play a crucial role in determining whether your property meets the minimum safety standards required to pass the inspection.

For the electrical system, the inspector will look for any potential hazards that could affect the safety of your property. This includes checking that all electrical outlets and switches work properly, that the wiring is up to code, and that there are no exposed wires. The inspector may also check that the electrical panel is properly labeled and that there are no tripping hazards from cords or wires.

In terms of plumbing, the inspector will review the water supply and drainage systems. They will check for leaks, signs of water damage, and ensure that the water heater is in good working condition. The inspector may also check that the plumbing system is up to code and that there are no potential hazards such as exposed pipes or leaks that could cause damage to the home.

Overall, it is important to ensure that your electrical and plumbing systems are in good working condition before the inspection. If there are any issues, it is best to address them before the inspection to avoid any delays or potential issues with passing the inspection.

Health and Safety Concerns

When it comes to FHA inspections, health and safety concerns are a top priority. The home must protect the health and safety of its occupants, and this includes identifying and addressing any potential hazards. Some common safety hazards that may be identified during an FHA inspection include:

• Asbestos: If the home was built before 1980, there may be asbestos present in insulation, flooring, or other materials. The FHA inspector will look for any signs of asbestos and may require it to be removed or encapsulated.
• Lead-based paint: If the home was built before 1978, there may be lead-based paint present. The inspector will check for chipping or peeling paint and may require it to be remediated.
• Contaminated soil: If the home is located near a hazardous waste site or other contaminated area, the soil may also be contaminated. The inspector may require soil testing to ensure that it is safe.
• Hazardous waste site: If the home is located near a hazardous waste site, the inspector will check for any potential risks to the occupants.

In addition to these specific hazards, the FHA inspector will also check for any other safety concerns that could impact the health and well-being of the occupants. This includes things like:

• Electrical hazards: The inspector will check that all electrical systems are up to code and that there are no exposed wires or other hazards.
• Structural issues: The inspector will check for any signs of structural damage, such as cracks in the foundation or walls, that could pose a safety risk.
• Plumbing issues: The inspector will check that all plumbing systems are functioning properly and that there are no leaks or other issues that could cause water damage or other hazards.

Overall, the FHA inspection is designed to ensure that the home is safe and livable for its occupants. If any health or safety concerns are identified, the inspector will require them to be addressed before the home can pass inspection.

Dealing with Repairs and Defects

When it comes to FHA inspections, repairs and defects can be a major concern for homeowners. If your property fails inspection, it’s important to address any issues as soon as possible. Here are some tips for dealing with repairs and defects:

• Know the difference between repairs and maintenance. Maintenance is the routine upkeep of your property, while repairs are necessary fixes to address specific issues. It’s important to keep up with both to avoid any major problems.
• Don’t ignore normal wear and tear. While some wear and tear is expected, it can still cause problems during an FHA inspection. Make sure to address any issues as they arise to prevent them from getting worse.
• Understand what constitutes a defect. A defect is a problem that affects the safety, security, or soundness of your property. These can include issues with the foundation, roof, plumbing, electrical system, and more. It’s important to address these issues as soon as possible to prevent further damage.
• Get multiple quotes for repairs. If you need to make repairs to your property, it’s a good idea to get multiple quotes from different contractors. This will help you find the best price and ensure that the work is done correctly.
• Work with your lender to address any deficiencies. If your property fails inspection, your lender may require you to make repairs before closing. It’s important to work with them to address any deficiencies and ensure that your property meets FHA standards.

Remember, failing an FHA inspection doesn’t mean that you won’t be able to sell your property. By addressing any repairs and defects as soon as possible, you can ensure that your property is in good condition and ready for inspection.

What Won’t Pass FHA Inspection

When it comes to FHA inspections, there are certain issues that can make it difficult to pass. Here are some of the things that won’t pass FHA inspection:

Safety Issues

The FHA appraiser will check for potential hazards, such as asbestos or contaminated soil. If any safety issues are found, they must be addressed before the property can be approved for an FHA loan.

Location

The location of the property is also important. The home must not be too close to a hazardous waste site. Additionally, proximity to excessive noise — like heavy traffic, high-voltage power lines, or an airport — can prevent a home from meeting FHA guidelines.

Structural Issues

Structural issues can also prevent a home from passing an FHA inspection. This includes things like foundation problems, roof leaks, or termite damage. These issues must be addressed before the property can be approved for an FHA loan.

Electrical and Plumbing Issues

The electrical and plumbing systems in the home must also meet certain standards. Any issues with these systems must be addressed before the property can be approved for an FHA loan.

Peeling Paint

If the home was built before 1978, there may be issues with lead-based paint. Peeling paint can also be a problem. If there is any peeling paint, it must be addressed before the property can be approved for an FHA loan.

Missing Appliances

The FHA requires that certain appliances be present in the home, including a stove and a heating system. If these appliances are missing, they must be installed before the property can be approved for an FHA loan.

Overall, passing an FHA inspection may seem difficult, but it is important to remember that these inspections are designed to ensure that the property is safe and meets certain standards. By addressing any issues that are found during the inspection, you can increase your chances of passing and securing an FHA loan.

FHA Inspection Checklist

If you are preparing for an FHA inspection, you may want to consider using an FHA inspection checklist to ensure that your property meets all the necessary requirements. This checklist will help you identify any potential issues that may arise during the inspection process, and address them before the inspector arrives.

An FHA inspection checklist (sometimes in PDF) typically includes the following items:

• General Health and Safety: The inspector will check for any hazards that may pose a risk to the occupants of the property, such as exposed wiring, broken windows, or missing handrails.
• Foundation or Structural Defects: The inspector will examine the property’s foundation and structure to ensure that they are sound and stable.
• Utilities: The inspector will check that the water, sewage, heat, and electricity are all in working order.
• Chipped or Peeling Paint: If the property was built before 1978, the inspector will look for any chipped or peeling paint, which may contain lead.
• Incomplete Renovations: If any renovations have been made to the property, the inspector will ensure that they were completed properly and meet FHA standards.
• Water Damage: The inspector will check for any signs of water damage, such as stains or mold.

Using an FHA inspection checklist can help you ensure that your property is in compliance with FHA standards, and may increase your chances of passing the inspection. However, keep in mind that the checklist is not exhaustive, and the inspector may identify additional issues that need to be addressed.

FHA Appraisal Red Flags

When it comes to FHA appraisals, there are certain red flags that can make it difficult to pass inspection. Here are some of the most common issues that can arise during an FHA appraisal:

Peeling Paint

One of the most common red flags is peeling paint. If the appraiser notices any peeling paint on the interior or exterior of the home, it could be a sign of lead-based paint. This can be a serious health hazard, especially for young children. To pass inspection, any peeling paint must be removed and repainted with a lead-free paint.

Structural Issues

Another red flag is any structural issues with the home. This could include issues with the foundation, roof, or walls. If the appraiser notices any cracks or other signs of damage, it could be a sign of a more serious problem. To pass inspection, any structural issues must be repaired by a licensed contractor.

Safety Hazards

Safety hazards are also a major red flag during an FHA appraisal. This could include issues with the electrical or plumbing systems, as well as any safety hazards such as loose handrails or broken steps. To pass inspection, any safety hazards must be repaired before the loan can be funded.

Pest Infestations

Pest infestations are another red flag that can make it difficult to pass inspection. This could include issues with termites, rodents, or other pests. If the appraiser notices any signs of a pest infestation, it could be a sign of a more serious problem. To pass inspection, any pest infestations must be eliminated by a licensed pest control company.

Appraisal Value

Finally, the appraisal value itself can be a red flag. If the appraiser determines that the home is worth less than the loan amount, the loan may not be approved. This could be due to a variety of factors, including the condition of the home, the location, and the local real estate market.

Overall, passing an FHA appraisal can be challenging, but with the right preparation and attention to detail, it is possible to pass inspection and secure your loan.

FHA Inspection Requirements Since 2023

If you are planning to purchase a home with an FHA loan, you will need to pass an FHA inspection. The inspection is conducted by a licensed, HUD-approved property appraiser, and it is designed to ensure that the home meets minimum safety, security, and soundness standards.

Here are some of the FHA inspection requirements established since 2023:

• Property type: The property must be a single-family home, a multi-family home with up to four units, or a condominium. Manufactured homes are also eligible for FHA financing but must meet additional requirements.
• Minimum property standards: The home must meet minimum property standards set by the Department of Housing and Urban Development (HUD). These standards include requirements for the foundation, roof, heating and cooling systems, plumbing, electrical, and more.
• Safety hazards: The home must be free of any safety hazards that could harm the occupants. This includes issues such as exposed wiring, broken windows, and missing handrails.
• Lead-based paint: If the home was built before 1978, it must be free of lead-based paint hazards.
• Environmental hazards: The home must be free of any environmental hazards that could affect the health of the occupants. This includes issues such as radon, mold, and asbestos.
• Appraisal value: The home must be appraised by an appraiser approved for FHA home inspection. The appraisal value must be at least equal to the purchase price of the home.

It is important to note that the FHA inspection requirements are designed to ensure the safety and soundness of the home, not to nitpick every minor issue. However, if the appraiser identifies any issues that could affect the safety or livability of the home, they will need to be addressed before the loan can be approved.

Overall, while the FHA inspection requirements may seem daunting, they are designed to protect you as the homebuyer and ensure that you are purchasing a safe and sound home. By working with a knowledgeable real estate agent and lender, you can navigate the inspection process with confidence.

FHA Inspection Checklist

When you’re getting an FHA loan to buy a home, the property you’re interested in must pass an FHA inspection. This inspection is carried out to ensure that the property meets minimum safety, security, and soundness standards. Here is a checklist of what an appraiser will be looking for during the FHA inspection:

1. Safety Hazards

The appraiser will check for any potential safety hazards that could pose a risk to the occupants of the property. These hazards include:

• Faulty electrical wiring
• Leaking gas pipes
• Inadequate ventilation
• Broken windows
• Damaged roofs
• Peeling paint

2. Structural Soundness

The appraiser will also check the structural soundness of the property. They will look for any signs of structural damage, such as:

• Cracked or bowed walls
• Sagging roofs
• Uneven floors
• Foundation problems

3. Health Hazards

The appraiser will also check for any potential health hazards that could affect the occupants of the property. These hazards include:

• Presence of mold or mildew
• Poor indoor air quality
• Pest infestations
• Presence of lead-based paint

4. Marketability

The property must be marketable, which means that it must be attractive to potential buyers. The appraiser will check for any issues that could affect the property’s marketability, such as:

• Poor curb appeal
• Overgrown landscaping
• Inadequate parking
• Poor location

5. Mechanical Systems

The appraiser will also check the mechanical systems of the property, including:

• Heating, ventilation, and air conditioning (HVAC) systems
• Plumbing systems
• Electrical systems
• Water heaters

What Won´t Pass An FHA Inspection

When it comes to getting an FHA loan, there are certain requirements that your property must meet.

These requirements are known as Minimum Property Standards (MPS) and are designed to ensure that the property is safe, secure, and sound. If your property does not meet these standards, it will not pass an FHA inspection, and you will not be able to get an FHA loan.

Here are some of the issues that won’t pass an FHA inspection:

Safety Issues

Safety is a top priority for the FHA. Your property must be free from any hazards that could pose a risk to the health and safety of the occupants. This includes things like exposed wiring, broken windows, and damaged stairs. The property must also be free from any environmental hazards, such as lead-based paint, asbestos, or contaminated soil.

Structural Issues

The FHA wants to ensure that the property is structurally sound and will not collapse or cause harm to the occupants. Any structural issues, such as a cracked foundation, sagging roof, or water-damaged walls, will not pass an FHA inspection.

Mechanical Issues

The mechanical systems in your property must be in good working order. This includes things like the heating and cooling systems, plumbing, and electrical systems. The FHA inspector will check for any leaks, damaged pipes, or faulty wiring. If any issues are found, they will need to be repaired before the property can pass the inspection.

Property Condition

The property must be in good condition and free from any major defects. This includes things like peeling paint, broken tiles, and damaged flooring. The property must also be free from any pests, such as termites or rodents.

Location

The property must be located in an area that is safe and free from any environmental hazards. It must not be located too close to a hazardous waste site or any other potential hazards.

In conclusion, an FHA inspection is designed to ensure that the property is safe, secure, and sound. If your property does not meet the Minimum Property Standards, it will not pass the inspection, and you will not be able to get an FHA loan. It is important to address any issues before the inspection to ensure that your property is in compliance with the standards.

FHA Appraisal Re-Inspection

If your property fails the initial FHA appraisal inspection, a re-inspection may be required. This is usually the case if the appraiser identifies any issues that need to be addressed before the property meets FHA minimum requirements. For instance, if there are safety hazards, structural issues, or problems with the home’s heating, plumbing, or electrical systems, the appraiser will mark those items as “subject to repair.”

Once the repairs have been made, a re-inspection will be scheduled to ensure that the issues have been resolved and the property now meets FHA standards. The appraiser will return to the property and re-inspect the items that were previously marked as “subject to repair.” If everything is in order, the appraiser will issue an updated appraisal report indicating that the property now meets FHA requirements.

It’s important to note that a re-inspection is not always necessary. In some cases, the appraiser may be able to verify that the repairs have been made by reviewing receipts, invoices, or other documentation. However, if the repairs were extensive or if there were safety concerns, a re-inspection will likely be required.

Keep in mind that a re-inspection can delay the loan process and may result in additional fees. You will need to pay for the cost of the re-inspection, which can range from a few hundred to several thousand dollars depending on the extent of the repairs. Additionally, if the repairs were not completed within 120 days of the initial appraisal inspection, a new appraisal will be required, which means you will need to pay for another appraisal fee.

To avoid the need for a re-inspection, it’s important to prepare your property for the initial appraisal inspection. Make sure your home is in good condition and address any issues that could prevent it from meeting FHA minimum requirements. Consider hiring a professional home inspector to identify any potential problems before the appraisal inspection. By being proactive and addressing any issues upfront, you can help ensure a smooth and successful appraisal inspection process.

Contents of an FHA Inspection Form

There is no standard for an FHA inspection form. However there are some aspects that I always see in all forms utilized.

Structural Components

The inspector will check the foundation, roof, walls, and other structural components of the property to ensure that they are in good condition and do not pose any safety risks.

Mechanical Systems

The inspector will check the mechanical systems of the property, including the heating, ventilation, and air conditioning (HVAC) system, plumbing, and electrical systems, to ensure that they are in good working order and do not pose any safety risks.

Health and Safety Hazards

The inspector will check for any health and safety hazards, such as lead-based paint, mold, or other environmental hazards, that could pose a risk to the occupants of the property.

Access and Egress

The inspector will check for adequate access and egress to and from the property, including doors, windows, and stairways, to ensure that they are in good condition and do not pose a safety risk.

Site Hazards

The inspector will check for any hazards on the property site, such as steep slopes, unstable soil, or other hazards, that could pose a risk to the occupants of the property.