Getting a HUD or FHA type loan in Kentucky?
You need to read this page and the references carefully!
CLICK HERE to read the HUD/FHA Link on our Radon Testing Page to see how HUD/FHA encourages you to conduct Radon Testing but makes you responsible for Radon Testing and the Cost of Radon Mitigation.
Don’t let anybody fool you! Several people have told me lately that FHA will be inspecting their prospective home purchase for them. FHA does NOT inspect your home for you. Some people who don’t know any better or who don’t want you fully educated will try to tell you that the FHA Appraisal is a Home Inspection. THE FHA APPRAISAL IS NOT A HOME INSPECTION in any sense of the words! Click on the four links below so that you are an educated buyer.
Extract from United States General Accounting Office (GAO) study of FHA Homebuyers Home Inspections (Click here to read the full article on the GAO Web Site.)
One of the reasons often cited for getting a home inspection was to ensure there were no serious problems with the house. Homebuyers reported that two-thirds of inspections uncovered problems with homes. As a result, they benefited by being able to renegotiate their purchases. Buyers also reported inspections were worth as much or more than they cost and increased their confidence in their decisions to buy homes.
Excerpts from the Department of Housing and Urban Development web site (12-28-02):
“In August 1999, the Department of Housing and Urban Development unveiled the HUD/FHA Homebuyer Protection Plan, a package of far-reaching reforms that will benefit 800,000 families who get Federal Housing Administration mortgages each year…”
The Homebuyer Protection plan that HUD is implementing to cover all homes purchased with FHA insured mortgages will:
…Allow HUD Funds to be used for home inspections….
The Homebuyer Protection Plan went into effect on August 1. 1999.
Home Inspections
When you make an offer on a home, it’s a good idea to make your offer contingent on a home inspection, conducted by an independent authorized inspector. You will have to pay for this inspection yourself, but it could keep you from buying a house that will cost you far more in repairs, down the road. If you are satisified with the results of the inspection, then your offer can proceed. If you aren’t,you may want to negotiate, asking the seller to pay for certain repairs or asking for a lower price.
Appraisals
Your lender will require you to get an appraisal of the house you want to buy, to make sure it’s worth the money that you’re borrowing. You may select your own appraiser, or you may ask your real estate broker to help you take care of that.