FHA Modular Home Inspection and its Importance
Submitting your modular home for FHA (Federal Housing Administration) inspection gives a number of benefits. The FHA is an agency that gives confidence to home buyers especially first timers and average- income buyers that full checkup and evaluation of the house are done accordingly. Usually FHA inspected home saves hundreds of dollars while ensuring the highest quality.
Understanding the basics about home inspection and FHA first is a good way to learn the importance of modular home inspection.
Modular Home Inspection
Modular Home by Redman Homes
A home inspection is a work into which a third party representative checks whether the house complies with the building codes. It is typically done prior to the construction process where issuance of building permits is granted by the inspector. An inspection is usually a condition set or incorporated when buying a house, which is written in a sales contract. The condition states that the buyer has a right to allow inspections for the house and has to power to cancel buying it when he comes into terms that the house does meet the standards. It is also noted in the protection against penalizing a borrower for cancelling the home loan following the sad result of inspection.
A passing home inspection is vital when you are using a FHA-backed mortgage loan to purchase a property. The FHA, or Federal Housing Administration, backs low-cost mortgages for qualified borrowers, according to the U.S. Department of Housing and Urban Development (HUD), but the purchase property must meet the standards lay down by the FHA. A licensed house inspector examines the property to determine its condition and if the property meets the FHA criteria.
FHA Inspection
The Federal Housing Administration backs up mortgage loans through a mortgage insurance program that guarantees a loan if the borrower defaults. FHA has certain inspection guidelines that a home must meet before the loan can be secured. The lender must require that a home inspector be hired, usually at the buyer’s expense, to walk the property and test it against FHA’s guidelines to make sure the home is ready for lending.
As one of its advocacy, the FHA reimburses the lender’s losses once they have proven a borrower’s default, which allows lenders to finance risky buyers of modular dwellings with one to four units. The agency requires an appraisal inspection on all purchase loans rendered by the buyer and the lender. The appraisal inspection is able to know the market value of the modular home, and its overall condition, even determining minor defects that could leverage the house’s value, structural integrity or the occupants’ health and safety. As part of the condition, lenders may require certain repairs if they have seen any. The inspection report is often used to evaluate whether the modular home is a good collateral for the mortgage loan and the maximum loan amount.
Unlike the home inspection, appraisal inspection is optional and attends to the personal doubts of the buyer. It is for the lender’s underwriting purposes only.
Knowledge of the steps involved in the construction of your modular home is a brilliant way to supercharge its quality and performance. Now all you get to do is look for the right modular home builder. You can start with the Legendary Homes, Inc.
“With its superior quality, energy efficiency, strong and budget friendly modular homes, Legendary Homes is one of the trusted modular home builders around Clarklake and Jackson Michigan for over 20 years of experience now. Legendary Homes helps in site location, acquisition of permits, excavation, foundation (including Insulated Pre-Cast Foundations), landscaping, breeze ways and other services needed to complete your home. As a company that prioritizes its customers, Legendary Homes allows you to customize your home. And most importantly, we assist in modular homes financing by working with the top lenders in Michigan.”
It’s amazing news to start building your dream home, right? “We can make your dreams a reality!”
