VA And FHA Inspections
What many people fail to understand is that the VA or FHA loan is not being provided by the VA or FHA (except in rare circumstances). The VA or FHA are only guaranteeing the loan. The loan is being provided by a commercial non-governmental lender.
Because the VA or FHA guarantee is a component of the loan it is the lender that is tasked with ensuring the loan meets the requirements of the VA or FHA in order to receive the associated loan guaranties. In those requirements are verification that the property meets certain health, safety, and habitability standards.
The home inspector is not employed by the lender. The home inspector is employed by the Buyer. 99.999% of the time the home inspector has no knowledge of who the lender is. The inspector does not provide a copy of the inspection report to the lender (unless specifically requested and only with permission). So it is not the home inspector’s job to verify whether the home meets or exceeds VA or FHA standards; it is the lenders responsibility. Read more ›