Passing an FHA home inspection is a must if you’re looking to buy a house with an FHA loan. FHA loans pose a number of advantages—notably, they are available even to those with lower credit scores, which may be the only way some borrowers can get the financing they need to move into their own place. However, getting through an FHA home inspection can be tricky, so home inspection checklists are key to ensuring every requirement is fulfilled.
What Is an FHA Home Inspection?
An FHA home inspection takes an in-depth look at an entire property. Its goals are to ensure the property meets FHA loan standards in order for the loan to be approved, to determine the true market value of a home, and to evaluate the loan amount that the buyer can get. It also checks whether the home is in good condition and looks for any red flags that the buyer should be aware of.
An FHA home inspection serves two key purposes. The first—its primary job—is to protect the lender. If a buyer who may already have a lower credit score ends up in a house that’s falling apart and doesn’t meet required standards, they might not be able to finance the necessary repairs. This can lead to missed payments or even abandonment of the house, which the lender doesn’t want.
Second, an FHA inspection protects the buyer by helping to make sure a house is fit for habitation, in decent shape, and won’t rack up a ton of repair bills in the first few years.
What Do Inspectors Look for During an FHA Home Inspection?
During an FHA home inspection, the inspector will evaluate both the house and the surrounding area. More specifically, they’ll look for:
- Property concerns, including things like sinkholes, oil or gas wells, abandoned wells, and anything else that might make the property dangerous
- Building issues, such as structural problems and defects (for example, foundation or wall damage, water marks or cracks, etc.)
- Accessibility limitations that make it difficult to safely get to the house by car or on foot, especially in an emergency
- Signs of pest infestations like termite tunnels or rodent droppings inside the house, which can cause a loan to be denied
- Problems with the plumbing or wiring—namely, leaking pipes, unsafe wires, or other hazards that could pose serious danger to residents of the property
- Roofing inspection issues, keeping in mind that the roof needs to be strong enough to last at least two more years and is free of leaks or moisture buildup
Basically, an FHA home inspection is designed to find any potential problems with a house. The biggest concerns are things that could be dangerous to people living there or could seriously damage the house itself.
Is It Hard to Pass an FHA Home Inspection?
Passing an FHA home inspection is tougher than passing other inspections because serious problems have to be fixed before you can secure an FHA loan. However, if the house is safe, in good condition, and has no obvious problems, you should pass fairly easily.
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What Will Lead to an FHA Home Inspection Failure?
A few things can cause a house to fail an FHA inspection, but there are three main issues an inspector is looking for. If the house falls into one of these categories, the loan will likely be denied.
1. The house is unsafe to live in.
This could be due to electrical hazards, serious water damage, structural damage, pests, or other reasons. Sometimes sellers can fix these problem quickly, but in other instances, the buyer may not be able to get the loan.
2. The home is unsanitary in some way.
Issues related to rodent or bug infestations, mold, and sewage are usually fixable by the seller, but they need to be addressed before the house can pass inspection.
3. The home has clear signs of structural damage.
If a house isn’t structurally sound, it could collapse and injure someone—and unfortunately, structural issues tend not to be easily fixable. Any obvious structural problems will cause a house to fail the inspection.
What Areas Are Evaluated as Part of FHA Home Inspection Checklists?
The FHA home inspection checklist covers a variety of areas, including:
- The roof
- The property itself, including potential access points and damage
- The wiring
- The hot water heater
- The plumbing
- Bathroom functionality
- Heating and cooling
- Potential pest infestations
- General structure
- Bedrooms, including presence of windows for safety reasons
You can expect FHA inspectors to go through the whole house, including attics and basements, to make sure there’s no hidden damage.
What Are the Benefits of Going Digital With FHA Home Inspection Checklists?
GoCanvas® offers a template that can be used by FHA home inspectors to streamline the inspection process via a mobile device or tablet.
Inspection companies have found that going digital saves time during inspections and when creating reports. Doing everything electronically with a mobile app cuts down on issues related to data entry and the manual process that are common with paper forms.
Looking for an easy-to-use digital home inspection checklist? You can find the GoCanvas FHA home inspection template here.
