either FHA or VA loans they felt make the loan process more unpredictable, and
many of these loans would require repairs that they felt would not have been
required with a conventional loan.
Though these experiences may have been legitimate, there
have been changes made since the earliest years of a resurgence in FHA and VA loans,
and at least with our mortgage bank FHA loans are much easier to complete without many of the repairs that might have been demanded to be made in the past. In fact my personal experience, for the most
part, is I have had no more problems or requirements in funding my FHA loans than
with my conventional loans.
It is still true that health and safety issues are a big
deal with FHA, however, we do not require an inspection of any kind from you and
depend solely on the appraiser’s evaluation of any possible health and safety issues that
need to be fixed. A home inspection is always recommended for your own use and
as a negotiating chip.
The appraiser is almost always not a qualified licensed inspector and therefore only makes
visual inspections for obvious health and safety problems. Most of my FHA
mortgage loans have not required any repairs be made. And when there have been it has been
an obvious issue we generally knew in advance. It might be a simple coat of protective paint will do the trick, or installing carbon monoxide detectors. Many issues that FHA appraisers might spot are almost
always taken care before they can be spotted by responsible owners.
VA loan requirements might be a little bit more strict. A pest inspection is always required and any
recommended repairs be made. Now, with VA being stricter, it might be wise to check out
older homes carefully. Some owners might even have a recent pest inspection on the place and have had any necessary repairs made. Remember, the VA is only interested in protecting Veterans in making sure the home meets strong health and safety standards.
I encourage sellers and realtors to not view borrowers
qualified for FHA loans as less desirable as they are most often going to have
mortgage loans that go through as smoothly as conventional loans! As to a V A
loan being just a little more strict in requirements, please remember this is a
military or former military person who has earned the right to a good V A