• FHA helps people become homeowners by insuring mortgages for lenders. This allows lenders to offer mortgages to first-time buyers and others who may not qualify for conventional loans. Because the FHA insures the loan for the lender, the buyer pays only a very low down payment.

Does the FHA guarantee the value or condition of my potential new home?

• No, the FHA does not guarantee the value or condition of your potential new home. If you find problems with your new home after closing, the FHA can not give or lend you money for repairs, and they can not buy the home back from you.
  That's why it's so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to inspect your potential home and give you the information you need to make a wise decision.

Is there a difference between an appraisal and a home inspection?

• Yes! An appraisal is for lenders, a home inspection is for buyers. The lender does an appraisal for three reasons:
  1. To estimate the value of the house
  2. To make sure that the house meets FHA minimum property standards
  3. To make sure that the house is marketable
  Appraisals are not home inspections.

Why do I need a home inspection?

• A home inspection gives the buyer more detailed information than an appraisal - information you need to make a wise decision. In a home inspection, a qualified inspector takes an in-depth, un-biased look at your potential new home to:
  1. Evaluate the physical condition: structure, construction, and mechanical systems
  2. Indentify items that need to be repaired or replaced
  3. Estimate the remaining useful life of the major systems, equipment, structure, and finishes

What goes into a home inspection?

• A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors.

BE AN INFORMED BUYER.....IT'S YOUR RESPONSIBILITY

• Be sure that what you buy is satisfactory in every aspect. You have the right to carefully examine your potential new home with a qualified inspector.

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