- U.S Department of Housing and Urban Development
- Federal Housing Administration
- IMPORTANCE OF HOME INSPECTIONS
- FHA DOES NOT WARRANT THE VALUE OR THE CONDITION OF A
HOME!
While FHA requires the lender to
have an appraiser determine the value of the property, it
is an estimate only and is used to determine the amount
of mortgage FHA will insure and if the condition of a
property makes it eligible for FHA mortgage insurance. It
is not, however, a guarantee that the property is free of
defects.
- As the purchaser, YOU should carefully
examine the property or have it inspected by a qualified
home inspection company to make sure that the condition
is acceptable to you. You should do this before you sign
the sales contract or make the contract contingent on the
inspection. If repairs are needed, you may negotiate with
the owner about having the faults corrected.
- There is no requirement that you hire
an inspector. If you choose to, the cost of the
inspection up to $200 may be included in your mortgage
loan. Names of home inspection companies can be
found in the yellow pages of your telephone directory
under the heading "Home Inspection Services".
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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I/We have carefully read this notice and fully understand
that FHA will not perform a home inspection nor guarantee
the price or condition of the property we are purchasing.
_____ I/We choose to have a home inspection performed.- _____ I/We do not choose to have a home inspection
performed.
Borrower ___________________________ Date
_______
Co-Borrower________________________
Date _______
- U. S. Department of Housing and Urban Development
- Washington D.C. 20410-8000
OFFICE OF THE ASSISTANT SECRETARY- FOR HOUSING - FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 96-97- TO: ALL APPROVED MORTGAGEES
SUBJECT: Single Family Loan
Production - Importance of Home Inspection
- As discussed in Mortgagee Letter 96-29
(ML 96-29), FHA would no longer be prescribing the
document that notifies homebuyers of potential lead-based
paint hazards. After December 6, 1996, EPA pamphlet
"Protect Your Family From Lead in Your Home"
would become the official lead-based paint disclosure.
That disclosure is the responsibility of the owner of the
living unit selling or renting the property. Lenders no
longer need to have evidence the disclosure was provided
and do not need to retain anything in the case binder.
However, the previous lead-based notice required by FHA
served an additional purpose by alerting homebuyers to
the importance of obtaining a home inspection when
purchasing an existing home.
- FDA believes that homebuyers are best
served when they are aware of their own responsibilities
for assuring that the property is acceptable to them and
that FHA does not warrant the condition of the home.
Homebuyers are also encouraged to obtain an inspection
service to make the determination that the house of free
defects.
- Therefore, we have developed the
attached Importance of Home Inspections form is to
be signed and dated by the borrower(s) on or before the
date that the sales contract is executed (or re-executed
if necessary) for all transactions that will involve FHA
mortgage insurance on existing property. New construction
is exempt since the house was recently inspected during
construction; refinance transactions are also exempt.
This new form replaces the dual inspection
notice/lead-based paint disclosure required by ML 96-10.
Either notice on inspections may be used until January 1,
1997 at which time the attached Importance of Home
Inspections form must be used.
- If you have any questions regarding
this issue, please contact your local FHA office.
Sincerely,- Nicolas P. Rersinas
- Assistant Secretary for Housing-
- Federal Housing Commissioner
Stoffer Inspections, L.C. (785)
766-0600
1-800-966-0601
Fax (785) 842-9267
Stoffer
Inspections, L.C. Home Page
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