Updated over 5 years ago on . Most recent reply
FHA 203K Inspections
Hello all,
I was wondering if anyone has any experience with getting inspections done with a FHA 203K loan. I know the FHA is pretty strict when it comes to inspections (no peeling paint, no holes in walls, etc) for a regular FHA loan but was wondering if they were a little less strict with a 203K loan since it is obvious the house needs work. Would love to hear from people who actually had a 203K loan but will welcome input from all.
I was wondering if anyone has any experience with getting inspections done with a FHA 203K loan. I know the FHA is pretty strict when it comes to inspections (no peeling paint, no holes in walls, etc) for a regular FHA loan but was wondering if they were a little less strict with a 203K loan since it is obvious the house needs work. Would love to hear from people who actually had a 203K loan but will welcome input from all.
Most Popular Reply
FHA property condition requirements (FHA MPR/MPS) are the same for all FHA loans (FHA 203b, FHA 203k, etc.) The main benefit of the FHA 203k is that you can close on the property AS-IS and correct the FHA items AFTER closing.
To determine what items do not meet FHA MPR/MPS, during your inspection period, it's best to hire a HUD approved FHA 203k Consultant (selected by your lender) to do the FHA inspection, which will identify all FHA MPR/MPS that the property requires, determine a scope of work for rehab, and pricing for the project.