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Contrary to popular beliefs, FHA inspections and home inspections are not the same concepts. One of the most popular yet basic fundamental differences between the two inspection concepts is that – FHA home inspections are carried out before a home buyer undertakes a loan so that the lender can learn the condition of the house that’s being financed.
On the other hand, home inspections are initiated by homeowners & home buyers, and the results are reported to either of the above-mentioned parties by the home inspector (the party who is responsible for initiating the inspection process will only obtain the report). Apart from the aforementioned difference, there are quite a few more as well and the same will be discussed in this in-depth guide. So, without wasting any further seconds, let’s jump onto the topic at hand.
Major Differences Between Home Inspections & FHA Inspections
- The Target Areas
The main focus of FHA inspections is to learn the overall value of the property, which can easily be affected by any amount of much-needed home repairs. The FHA inspector will report on both available grounds – the property’s value as well as the value of repairs required. By obtaining this useful information, the lender can provide the buyer with the correct loan amount that’s equal to the overall worth of the property.
Alternatively, when it comes to the home inspection process, the main aim is to provide an in-depth inspection report of a property. Using this report the customer (either the seller or the buyer) can learn the overall condition of the house.
Therefore, it can be easily seen that the market value is not included in the equation when it comes to home inspections. Moreover, home inspections are carried out in a much more comprehensive manner than FHA inspections.
- The Certifications Are Different
An FHA inspection can only be carried out by an FHA inspector and no one else. All FHA inspectors should be licensed and approved by the FHA before carrying out the inspection process. However, when it comes to home inspections, things are a little bit different.
Professional services for a home inspection in Cobourg states that even though home inspectors are licensed, they don’t need to be approved by the FHA. Therefore, the FHA has no direct impact on the home inspection industry. Moreover, there are no restrictions imposed by the FHA as well.
- The Distinct Expectations
In an FHA inspection, the sole expectation lies on the lender and no one else. This is because the lender will lend the money to the buyer based on the FHA inspection report.
But, when it comes to home inspections, the expectation lies solely on the customer (either the buyer or the seller). There’s no involvement of any lender in this case.
And that pretty much sums up our comparison between the two concepts.
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