Does FHA require an inspection?

November 11, 2025 - By puppylinux

The short answer: The Department of Housing and Urban Development (HUD), which manages this program, does not require home inspections for FHA-insured home loans. But they do require a property appraisal to be conducted. So while an appraisal is required, a comprehensive home inspection is not.

Herein, is an inspection required for FHA loan?

FHA Loans Do Not Require an Inspection All borrowers who use an FHA loan to purchase a home will receive a home inspection disclosure document from the Department of Housing and Urban Development. FHA does not perform a home inspection.”

Also, who pays for FHA inspection? Here's the short answer: While most of the costs relating to an FHA loan can be negotiated, it is usually the buyer who pays for the home appraisal. After all, it is the buyer's mortgage loan. And the appraisal is required as part of the FHA mortgage loan package. So the home buyer usually pays for it.

Similarly, it is asked, what does FHA look for in an inspection?

👉 For more insights, check out this resource.

FHA Inspection Checklist Presence of any defective conditions, including but not limited to, poor construction, leaks, decay (A property with any defected conditions is considered unacceptable until the defects are corrected.) Roof must be in good condition and prevent moisture from entering the home.

What will fail an FHA inspection?

👉 Discover more in this in-depth guide.

Structure: The overall structure of the property must be in good enough condition to keep its occupants safe. This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.

Why do sellers not like FHA loans?

Reasons Sellers Don't Like FHA Loans

Both reasons have to do with the strict guidelines imposed because FHA loans are government-insured loans. For one, if the home is appraised for less than the agreed-upon price, the seller must reduce the selling price to match the appraised price, or the deal will fall through.

How much does a FHA inspection cost?

A typical FHA appraisal costs $300 to $500, depending on factors including the size of the house, whether it needs many repairs or is in good condition.

What happens after FHA inspection?

For most purchase transactions, the FHA home appraisal takes place once the seller has accepted the home buyer's offer. After the buyer and seller have agreed on a purchase price and signed the contract, the mortgage lender will order an appraisal. In most cases, the lender will have the buyer pay for it up front.

Will my house pass FHA inspection?

While most homes can pass an FHA appraisal after only major repairs, its best to complete all repairs to keep the minor problems from dropping the appraised value of the home.

Can closing costs be included in FHA loan?

FHA loan rules say there's one thing a borrower cannot do with closing costs, regardless of how they are paid. Closing costs can never be included as part of your minimum FHA loan down payment. Closing costs do NOT count towards the minimum 3.5% down payment and are considered separate from the down payment.

Can you get a home loan without an inspection?

The short answer is no, inspections are generally not required when using a mortgage loan to buy a house. But lenders almost always want to have an appraisal done before they will approve a home loan, in order to determine how much the house is worth.

How do I know if a home is FHA approved?

How do I know if a property is FHA approved? You can see FHA eligible properties in the Opendoor app. By editing your feed, you'll see properties relevant to your criteria (such as FHA eligible properties only). Government-backed FHA loans require the home being purchased be owned by the seller for 90 days.

How do I prepare my home for an FHA inspection?

FHA appraisal checklist

Must be a complete marketable property.
Adequate heating system.
Clear of any lead based paints.
No exposed electric wiring.
Full exterior walls that are undamaged.
No hazards in the home.
Quality construction.
Proper drainage.

Can you buy a fixer upper with FHA loan?

CAN A HOMEBUYER TAKE ADVANTAGE OF THE BENEFITS OF AN FHA MORTGAGE ON A “FIXER UPPER?” Absolutely. A program known as HUD 203(k) lets qualified buyers purchase fixer–uppers with FHA guaranteed loans, and even has built-in protection for the borrower should the repair and renovation process cost more than expected.

How long does FHA inspection take?

He will also prepare an appraisal report, which might take one day or several days, depending on workload. The appraisal report will be sent to the lender for review. So the entire appraisal process, including paperwork, can be completed in less than a week.

Are FHA appraisals more strict?

The FHA Appraisal

To secure a mortgage, the property must meet FHA minimum standards and meet a fair market value. As such, FHA appraisals are usually more strict than conventional appraisals. To qualify for an FHA loan, the appraisal must show: The roof is in good repair with no work needed for two years.

What are FHA requirements?

FHA Loan Requirements

FICO® score at least 580 = 3.5% down payment.
FICO® score between 500 and 579 = 10% down payment.
MIP (Mortgage Insurance Premium ) is required.
Debt-to-Income Ratio < 43%.
The home must be the borrower's primary residence.
Borrower must have steady income and proof of employment.

Do FHA appraisals come in low?

Sometimes FHA appraisers make mistakes. They're not infallible. If the comps support the seller's asking price, but the FHA appraisal still comes in low, then the home appraisal might be inaccurate. If the comps support the appraiser's lower estimate, then the seller might be asking too much.

What appliances are required for FHA loan?

Here's what the handbook says about appliance requirements for FHA loans: According to HUD, the term “appliances” generally refers to the following items: ovens and ranges, refrigerators, dishwashers, garbage disposals, microwaves, and washers / dryers.

What are FHA required repairs?

Rules on FHA Seller Repairs

rather, it will identify those repairs that are necessary for the “three S's” – the safety, security and soundness of a home. Typical repairs include such defects as missing handrails and non-approved plumbing and electrical systems.

How long do you have to keep a house with an FHA loan?

FHA borrowers must move into the home 60 days after the mortgage closes and must keep it as a primary residence for at least one full year. The FHA also insures mortgages for dwellings with up to four units, provided one of them is owner-occupied.

How long does an FHA loan take?

30 days and 60 days