FHA Inspection questions

[nada9188]

Hello

Inspection was completed, now the lender states that it must have been made out to them, not me-the buyer. 

The inspector refuses to change it. I feel that the inspector is being a PITA saying he "thinks it is illegal" to transfer the inspection to the name of the lender. 

Can anyone shed light on either or both of these issues? The lender has not shown me where it is a FHA requirement for the inspection to be in the lenders name.

The inspector has not provided any proof that it is "illegal" to simply change the name from mine to the lender. 

Again I am not able to find anything specific online regarding these issues. 

Thank you!!

[lks638]

I don't have specific insight to add to this issue, but I wanted to let you know that we feel your pain.  We, too are in the middle of applying for an FHA mortgage, and the hoops they are making us jump through.  It's a mess.  Hope you get it all figured out! 

[foofighter74]

Usually the lender sends the inspector out themselves and they in turn give the results back to the lender...and you cut the lender a check for the cost.  At least, that's what i've always experienced. 

[In-A-Limbo]

You own the home inspection. Lender own the FHA appraisal (but you're paying fo rit of course).  Do you mean the appraisal or the inspection?

[nada9188]

No I def mean inspection. What should I tell the lender. I shouldn't have to pay for another one. I just feel like someone should have told me beforehand, this is why the loan officer and agent get paid lots of money for some basic paperwork.

[In-A-Limbo]

I have done 2 inspections with 2 inspectors in the past 2 months (one went so bad we have to withdrawn our offer). Both inspectors said that I own the inspection and that is why I sign it at the end because it is issued to me. Lenders get copies if they want one. The FHA appraiser is the one that the lender pick and send us the bill. Inspection is to protect you, while appraisal is to protect the lender. Technically, you can opt not to have an inspection.

[In-A-Limbo]

I should add that some agents and lenders still refer to the FHA appraisal process as FHA inspection. FHA doesn't like the term inspection because it creates confusion and people think that FHA "inspection" is the same as home inspection.

[nada9188]

Should I tell the lender to show me where in the FHA rules that this is required so they drop the matter? They had two appraisals because it was a flip too. They claim that is an FHA rule too

[In-A-Limbo]

Ask your real estate agent. They should be able to to give some advice

[brownj12]

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@nada9188 wrote:
Should I tell the lender to show me where in the FHA rules that this is required so they drop the matter? They had two appraisals because it was a flip too. They claim that is an FHA rule too

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Well the fact it is a flip is the missing puzzle piece.

The 90 day rules waiver has a bunch of hoops to jump through if the sale price is more than 20% higher than the sellers aquistion price.

The two appraisals are cut and dry, you can only be charged for one of them.

The inspection is different from a regular home inspection. Any one can order it but the lender must pay the inspector and then they can pass that cost on to you.

It doesn't look like it is mandatory that both the inspection and second appraisal must be done but there needs to be evidence in the file to support the increased cost.

http://www.gpo.gov/fdsys/pkg/FR-2011-12-28/pdf/2011-33411.pdf