HUD & FHA Compliance Phoenix FHA Compliance Inspections

HUD & FHA Compliance Phoenix FHA Compliance Inspections Where are FHA Compliance Inspections needed? 

Jason Zaroslinski is an approved FHA Compliance inspector (N912). We are pleased to offer our services in this area of specialty. 

 If you are considering securing an FHA loan, you should know that all FHA loans require property appraisals, but not all require the submittal of an FHA Compliance Inspection Report (HUD-92051). Jason is not only HUD/FHA Approved but is an Arizona State licensed Home Inspector as well as a Member of the American Society of Home Inspectors (ASHI), ASHI wrote the State Standards of practices for Home Inspectors throughout the USA and Canada.  

Compliance Inspection Report is only needed in specific circumstances and should be confirmed first with your lender. Some examples are: 

* A new home under construction and not completed at the time the FHA appraisal is done 

* Existing homes undergoing major remodeling or reconstruction 

* Repairs or upgrades to manufactured home

* foundations, specified by a professional engineer 

* Home repairs specified by a FHA appraiser Roof repairs specified by a roof inspector

* Damage by wood destroying organisms (WDO) 

* Grading or site issues on a new manufactured home or site built home

* Installation issues on a new manufactured home 

* Construction or completion issues on a new site built home 

* Distance separation issues regarding septic tanks, wells and chemically treated soil 

* Additions to manufactured homes Verification of the proper completion of a new manufactured home or new site built home 

*Note: a “manufactured home” according to the FHA is a structure that is transportable in one or more sections. In traveling mode, the home is eight feet or more in width and forty feet or more in length. For more details, go to http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/41502c8HSGH.pdf  

Compliance inspections are to be completed only by an approved FHA Inspector. 

Occasionally an underwriter will misinterpret the FHA/HUD reporting requirements and request that a Compliance Report be signed and sealed by a professional engineer. However, there is no place on the form for an engineer’s signature and seal. The Compliance Report is to be signed only by a FHA Inspector.  

FOUNDATION INSPECTIONS

 When a foundation is in need of inspection for a FHA loan, there are some things you should know. A qualified Foundation Certification must be submitted appropriately according to either of these situations:

1.)  Signed and sealed Compliance Report with no improvements or upgrades – or – 

2.) Signed and sealed Foundation Certification (or Engineering Certification) specifying upgrades and/or repairs and a Compliance Report signed by a FHA Fee Inspector stating that the repairs or upgrades have been satisfactorily completed. 

We are able to provide Foundation Certifications in compliance with the HUD Permanent Foundation Guide for Manufactured Homes (PFGMH – HUD 7584), a requirement for all FHA-insured loans. Please contact us if you are in need of this service.  

For more information on HUD requirements and topics related to Foundation Certifications, visit https://www.foundationcerts.com/faq_fi.html. We work in conjunction with Harrison Engineering, LLC to provide these services.  

MORE ON HUD/FHA COMPLIANCE INSPECTIONS REPORT (CIR) 

FHA Compliance Inspections. When the inspections are performed by an FHA Compliance Inspector, form HUD-92051 Compliance Inspection Report must be completed and submitted in the case binder.  

Under Construction are those properties in which the first placement of concrete or other permanent materials has begun, but construction is not yet 100% complete.  

Existing Construction properties that are 100% complete at the time of appraisal. “Complete” means everything is complete including the installation of buyer preferences (flooring, appliances, etc.), utilities are on and fully functioning and all site improvements completed at the time of appraisal (Ready for Occupancy). If no repair or correction conditions are made by the appraiser, the appraisal serves as the final inspection as per HUD Handbook 4145.1 Paragraph 6-3-A(3).  

HUD/FHA will treat re-sales to a second or subsequent purchaser of new less than one year old properties that are 100% complete including all on and offsite improvements as existing properties and the new construction exhibits normally submitted will not be required, provided that:  

The re-sale is an arms length transaction.  

The lender shall clearly identify the transaction is a re-sale to a second or subsequent purchaser in the case binder to avoid an NOR issued by the Homeownership Center for missing new construction exhibits.  

For manufactured home properties, the engineer preparing the foundation certification is required to make a site inspection and the property must be 100% complete at time of inspection. 

Foundation certifications based on proposed construction will not be acceptable.

While a builder selling a newly built home is not subject to the property flipping rule, a subsequent seller would be.  

If you purchasing a Home and utilizing a FHA loan, you should have an experienced FHA Home Inspector.