FHA approved

[Robert Jones]

Had a realtor call me this evening to ask if I was FHA approved. WTH is that? Is that the same as 203k consultant. Or more misinformation being spread around?

[Nolan Kienitz]

There are two different lists at FHA/HUD. One is for FHA inspectors and the other is the 203k Consultants List.

I'm on both lists, have two different ID numbers and do different things. If you are on the 203k list you can't do the FHA-required forms, etc., etc..

Now ... as for FHA approved ... that question from the agent or client begs many more questions on my behalf to the agent/client as what are they wanting to get done?

Sometimes the terminology floating about is confusing. Sometimes doing your regular State of WA inspection will far exceed anything FHA requires, but on the other hand if they are looking for a "certain" document to also be provided ... then that is another matter.

[Robert Jones]

Thanks Nolan.

[Jerry Lozier]

Had a realtor call me this evening to ask if I was FHA approved. WTH is that? Is that the same as 203k consultant. Or more misinformation being spread around?

Hey Robert,

there are a couple lenders/ realtors here in my area that bring this up to my potential clients once in a while.

I tell my clients that FHA does not have their own inspectors (and furnish the FHA website that says so) just appraisers and explain the difference. However I tell them they (FHA) does have a 'approved list' and I choose not to be a part of that gov list as it is not mandatory. (to my knowledge)

I also tell them I am licensed in WA state to do HI and WSDA licensed to do pest inspections... and do dozens of (very thorough and accurate) inspections for HUD/FHA/VA loans yearly. I also tell them what FHA appraisers look for, and that my inspections have never been a problem, and they can hire any (WA licensed) independent inspector they choose.

I usually schedule the inspection at that point, (unless they are looking for the $200 HI special)

Jerry

BTW on a different note, there are a couple lenders (3-4 times this year) that require the home is termite free, I do not find out until a couple weeks later they require (specific) paperwork, so I have them send the paperwork which I fill out and send back.

Good reason for me to keep SPI as I suppose client would have to have a SPI inspection to close the loan.

[Robert Jones]

Thanks Jerry.

[hausdok]

Had a realtor call me this evening to ask if I was FHA approved. WTH is that? Is that the same as 203k consultant. Or more misinformation being spread around?

Hey Robert,

there are a couple lenders/ realtors here in my area that bring this up to my potential clients once in a while.

I tell my clients that FHA does not have their own inspectors (and furnish the FHA website that says so) just appraisers and explain the difference. However I tell them they (FHA) does have a 'approved list' and I choose not to be a part of that gov list as it is not mandatory. (to my knowledge)

I also tell them I am licensed in WA state to do HI and WSDA licensed to do pest inspections... and do dozens of (very thorough and accurate) inspections for HUD/FHA/VA loans yearly. I also tell them what FHA appraisers look for, and that my inspections have never been a problem, and they can hire any (WA licensed) independent inspector they choose.

I usually schedule the inspection at that point, (unless they are looking for the $200 HI special)

Jerry

BTW on a different note, there are a couple lenders (3-4 times this year) that require the home is termite free, I do not find out until a couple weeks later they require (specific) paperwork, so I have them send the paperwork which I fill out and send back.

Good reason for me to keep SPI as I suppose client would have to have a SPI inspection to close the loan.

Hi Jerry, I think that there is an error there. Before you posted this response, I'd gotten on the phone and called both FHA and HUD and spoke to folks there. Here's what I learned:

- FHA does not have a list of approved inspectors for an ordinary FHA loan, although they do have a list of FHA-approved appraisers which are a totally different animal.

- There is no requirement for an inspector to be FHA approved; and, according to FHA, there isn't any FHA approved inspector list anywhere.

- There is a HUD 203K consultant roster, and HUD requires 203K consultants to jump through some hoops to get placed on that list.

- HUD also has a REAC-trained inspector roster, but these are folks who've journeyed to Washington D.C. and taken a three-day course that educates them about the various requirements for condition of multi-family housing wherein the funds to make the purchase come from HUD. These REAC inspectors can then inspect properties for those folks who've applied for HUD loans. There is no similar requirement for FHA.

By the way, all REAC inspectors in this state must be licensed as home inspectors by the State of Washington or they are breaking state law.

Here in Washington State, there are a few non-profits that help low income buyers who qualify for their programs with down payments and closing costs for FHA loans. One of these had a requirement that the inspection of any home they were helping with had to be done by an inspector that could show that he or she was a member in good standing of ASHI, blah, blah, blah. That might have been where folks got the idea there was such a thing as an FHA list of approved inspectors but that was not an FHA list - it was the non-profit's list.

The Washington State Home Inspectors Advisory Licensing Board recently looked into that list and discovered that some of the inspectors on that list didn't hold current home inspector licenses. The non-profit got a good talking to and has since revised its requirements. Now, any inspector that's on their list must be fully licensed by the state and there is no requirement to belong to any particular association.

It looks like it's time to make Washington Realtors aware of this distinction so that agents stop mixing up apples and oranges.

On another note; when they called up later and demanded that termite report did you charge them an appropriate fee for that additional service or are you giving away that service free? If you're giving it away, why on earth would you do that?

ONE TEAM - ONE FIGHT!!!

Mike

[Nolan Kienitz]

Mike O.,

Rein in the horses there.

YES there IS a list of FHA inspectors. I am one of those. I'm also a 203k Consultant, a TREC-licensed (Texas) inspector, an ICC certified inspector and many more.

There are "certain" FHA-required documents that "have" to be signed off by an inspector on the FHA Inspector list.

I've been doing those type of inspections for the past 5+ years.

Here is the URL to the FHA/HUD page that allows you to select a search for either an FHA Inspector or a 203k Consultant.

For the contact you talked with indicating that there is no such thing is a bit off the mark.

FYI ... My FHA Inspector ID number is: J195

We are commonly called FHA Fee Inspectors. What I do as an FHA Fee Inspector has absolutely nothing to do with FHA Appraisers or Appraisals. Often an appraisal document will specify that an FHA Fee Inspector must do the final verification of the new home construction or remodel work being done.

This 'inspection' (loosely noted by myself) is nothing more than a confirmation that the home construction is complete, has received CO and is move-in ready. Then I fill out the FHA/HUD 92051 document and provide to the mortgage company and collect my fee. My minimum for such a visit is: $350.00 plus r/t mileage.

In past years I've done as many as 5-6 of those in a day ... before the bubble burst. They are excellent calender fillers and (for me) pay well.

FHA Inspector & 203k Consultant search ... TWO different lines to choose

[Marc]

If the house is new construction or if it's an existing house that needs repairs, an approved fee inspector must complete the final inspection.

If I'm not mistaken, the confusion in this thread is because of a new package the FHA is now offering which is designed to compete with conventional loans. The FHA is requiring a home inspection to qualify for this package and the home inspector who completes this inspection does not have to be approved by the FHA, yet.

'Course, the FHA may have changes their rules again and I simply missed the train.

So Rob, Nolan had it pretty straight about your lender. He doesn't know his material. I'd ask him to clarify just what package he's trying to sell to his buyer. Once he answers that correctly, you'll know how to respond.

Marc

[Jerry Lozier]

On another note; when they called up later and demanded that termite report did you charge them an appropriate fee for that additional service or are you giving away that service free? If you're giving it away, why on earth would you do that?

I have in my contract that I charge extra for the SPI report and explain to my clients that if I find WDI during the course of the inspection there will be an additional fee for the report.

Because I did not find WDI during the inspection, and we did not find out till later a report was necessary I chose not to bill the client for report. It was a business decision I felt good about....

Jerry

[hausdok]

As I said,

I contacted both FHA and HUD and personally talked to folks there about this question. I did it because of all of the confusion over this issue. The FHA folks explained that the list that the only list FHA has is of FHA certified appraisers and that the list that folks are referring to is a list of HUD inspectors; and that they (FHA) don't have their own list. They told me that when folks are referring to FHA inspectors they are actually referring to folks on the HUD list that the search engine you referenced searches. When I asked that person why, if there was no list, there is an application form for the list on their website that says FHI Inspector Roster, they told me that despite what it says the roster is of inspectors on a HUD list of folks that are approved to inspect repairs, etc..

When I contacted HUD, the person there said that there was no such thing as an "FHA inspector" list, that there was a list of HUD approved inspectors.

It's confusing, but it is what it is. There is a HUD list, you're probably on it; but, according to the folks I talked to at FHA and HUD, there is only a HUD list.

It distinction is probably lost on most folks; but when realtors start calling around looking for "FHA Inspectors" and they don't recommend inspectors who are not on that HUD list to their clients, they could very well be doing their clients a disservice in some cases.

The FHA inspector myth needs to go away.

ONE TEAM - ONE FIGHT!!!

Mike

[Nolan Kienitz]

As I said,

I contacted both FHA and HUD and personally talked to folks there about this question. I did it because of all of the confusion over this issue. The FHA folks explained that the list that the only list FHA has is of FHA certified appraisers and that the list that folks are referring to is a list of HUD inspectors; and that they (FHA) don't have their own list. They told me that when folks are referring to FHA inspectors they are actually referring to folks on the HUD list that the search engine you referenced searches. When I asked that person why, if there was no list, there is an application form for the list on their website that says FHI Inspector Roster, they told me that despite what it says the roster is of inspectors on a HUD list of folks that are approved to inspect repairs, etc..

When I contacted HUD, the person there said that there was no such thing as an "FHA inspector" list, that there was a list of HUD approved inspectors.

It's confusing, but it is what it is. There is a HUD list, you're probably on it; but, according to the folks I talked to at FHA and HUD, there is only a HUD list.

It distinction is probably lost on most folks; but when realtors start calling around looking for "FHA Inspectors" and they don't recommend inspectors who are not on that HUD list to their clients, they could very well be doing their clients a disservice in some cases.

The FHA inspector myth needs to go away.

ONE TEAM - ONE FIGHT!!!

Mike

I'm not sure how it can go away when there are two distinctive lists: FHA Inspectors and 203k Consultants .... and they perform different functions.

I perform both of those functions as I'm on both lists. Being on the 203k consultant list and NOT on the FHA Inspector lists does not allow one to do the FHA 'job completion' inspections and fill out the required forms. One has to be on the FHA Inspector list to be eligible to do that.

Our government at work ... or maybe 'not' in this case.

[Marc]

FHA inspector, HUD inspector...same thing. Some people say one, others say the other. The FHA is part of HUD. Prior to that many years ago, when it stood separate from HUD, it was the only department in the history of the US federal govt to actually make money.

Marc

[Scottpat]

Think of it this way...

FHA is the lending arm of HUD they insure the loan for HUD. So when a loan goes bad it is repossessed by FHA who intern puts it into the REO inventory owned by HUD.

My FHA Inspector number is L563

My 203k Consultant number is A856

[mwds120]

FHA doesn't maintain a list of approved home inspectors. This is a common misconception among real estate agents.

[mlparham]

As I said,

I contacted both FHA and HUD and personally talked to folks there about this question. I did it because of all of the confusion over this issue. The FHA folks explained that the list that the only list FHA has is of FHA certified appraisers and that the list that folks are referring to is a list of HUD inspectors; and that they (FHA) don't have their own list. They told me that when folks are referring to FHA inspectors they are actually referring to folks on the HUD list that the search engine you referenced searches. When I asked that person why, if there was no list, there is an application form for the list on their website that says FHI Inspector Roster, they told me that despite what it says the roster is of inspectors on a HUD list of folks that are approved to inspect repairs, etc..

When I contacted HUD, the person there said that there was no such thing as an "FHA inspector" list, that there was a list of HUD approved inspectors.

It's confusing, but it is what it is. There is a HUD list, you're probably on it; but, according to the folks I talked to at FHA and HUD, there is only a HUD list.

It distinction is probably lost on most folks; but when realtors start calling around looking for "FHA Inspectors" and they don't recommend inspectors who are not on that HUD list to their clients, they could very well be doing their clients a disservice in some cases.

The FHA inspector myth needs to go away.

ONE TEAM - ONE FIGHT!!!

Mike

I now have a headache. Thanks guys. I just say yes and close the deal. Never a problem.

[CAPTlawrence]

Question: What do you think is better, Jumbo Refinance or the FHA 203k home refinance loan? My fianc? and I are torn on which loan to get. We?re planning to renovate a single-family residence here in California and we found out at Prospect Mortgage that the maximum loan amount for 203(k) loans is $625,500. Not bad? but we?re still interested to know more about Jumbo Refinance. Any idea how much the maximum loan amount will be?