I can’t tell you how many times someone has asked me, “So will this house pass the FHA inspection?” And I get it — the phrase gets used constantly in real estate conversations. But it’s also one of the biggest misunderstandings I run into, so let’s clear it up.
With a standard FHA loan (this does not apply to FHA 203(k) renovation loans), there isn’t a “home inspection” required by FHA. What FHA requires is an appraisal. That’s done by an appraiser, not a home inspector.
Here’s why it gets confusing: FHA appraisals aren’t just about value. The appraiser is also looking for obvious, visible issues that could be considered a safety or livability concern. Because of that, people start calling it an “inspection,” even though it’s not meant to do what a real inspection does.
Another piece most buyers don’t realize: the appraiser usually isn’t the one making repair demands. The appraiser documents what they see. Then the underwriter (and sometimes the lender’s internal process) decides whether repairs are required before the loan can move forward. That’s why it can feel unpredictable — it’s not always the same from one transaction to the next.
That said, there are some issues we see get flagged more often than others. Things like peeling or flaking paint, rotted exterior wood, obvious plumbing leaks, outlets or switches that don’t work properly, a heating system that isn’t operating, roof conditions that suggest the roof is near the end of its usable life, missing or badly damaged flooring, and visible structural concerns. Basically, if something is clearly visible and looks like it could be a safety issue, it has a better chance of being called out.
Now here’s the part I always want people to hear: an FHA appraisal is not a home inspection. It’s not a detailed evaluation of the home’s systems, and it’s not designed to protect the buyer the way an inspection is. A home inspection is where you get the fuller picture — how the major components are functioning, what needs attention, and what you may be inheriting after you move in.
And no, you don’t need an “FHA-certified inspector” for a standard FHA loan. A home inspection is independent of the loan type. What matters is working with an inspector who’s thorough, consistent, and communicates clearly so you can make confident decisions.
If you’re buying with an FHA loan and you’re not sure what to expect, we’re always happy to talk it through. Call or text On the Level Inspection Service, or visit our website to schedule your inspection.
Ken Humont – On the Level Inspection Service – Email
