What the FHA does for buyers...
and What they don't do.

What they do: 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 loan for the lender, the buyer pays only a very low down payment.

What they don't do: FHA does not guarantee the value or condition of your potential new home. If you find problems with your new home after closing, they can not give or lend you money for repairs and they will 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 new home to obtain needed information to make a wise decision.

Appraisals and Home Inspections are different.

As a part of their job insuring the loan, FHA requires that the lender conduct an FHA appraisal. An appraisal is different from a home inspection. Appraisals are for lenders; home inspection are for buyers. The lender does an appraisal for three reasons:

• to estimate the value of a house.
• to make sure that the house meets FHA minimum property standards
• to make sure the house is marketable

Why a Buyer Needs a Home Inspection.

A home inspection gives the buyer more detailed information than an appraisal--information you need to make a wise decision. A home inspection offers an unbias look at your potential home.

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 detail report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation, ventilation, air conditioning and interiors.

Be an Informed Buyer.

It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You may arrange to do so before signing your contract or may do so after signing your contract as long as your contract states that the sale of the home depends on the inspection.