FHA brutality

[ALATORRE]

What is the name of your state (only U.S. law)? Oregon

hey I am in contract to purchase a house at $151,500. I went FHA. I had a home inspection done and nothing substantial came back from the report that will not be fixed by the seller. I am still in inspection period.

I had FHA appraise the property at 154,000. Great! BUT approx. $10,000 of work was listed to be completed before FHA would approve financing—excluding issues that the seller has agreed to fix. The home inspection that I had completed prior found the house to be "livable" and structurally sound. At the bottom of the appraisal form, FHA indicates that appraisers are not home inspectors and their determinations do not substitute for those of a licensed home inspector's.

Why is FHA blocking me from financing a house that has been determined structurally sound and in good condition, especially at a time when the economy could benefit from first time home buyers entering the market? Why is there an apparent discrepancy between the determinations of licensed home inspectors and FHA appraisers? Why are FHA appraisers able to make in my opinion, sweeping determinations when they are not as qualified as actual home inspectors?

More specifically, what can I do to alter this blockade? can I dispute or appeal any of this?

[seniorjudge]

This is an example of the Golden Rule: He who hath the gold maketh the rules.

[ALATORRE]

so that's it? really, this whole process has been eye opening. i can't believe how much effort goes into the home purchasing dance. lenders and agents make it seem official and mechanic, but it's not. at the end of it all there are just people spinning some kind of hyper-contextualized sense out of nonsense.

[mommyof4]

i can't believe how much effort goes into the home purchasing dance.

Hmmm....seems to me that if MORE effort had been required to purchase a house, the housing market wouldn't be in the tank right now.

[Cedrus]

Please tell us what the FHA found, that your home inspection did not find.

[HomeGuru]

Originally Posted by ALATORRE

What is the name of your state (only U.S. law)? Oregon

hey I am in contract to purchase a house at $151,500. I went FHA. I had a home inspection done and nothing substantial came back from the report that will not be fixed by the seller. I am still in inspection period.

I had FHA appraise the property at 154,000. Great! BUT approx. $10,000 of work was listed to be completed before FHA would approve financing—excluding issues that the seller has agreed to fix. The home inspection that I had completed prior found the house to be "livable" and structurally sound. At the bottom of the appraisal form, FHA indicates that appraisers are not home inspectors and their determinations do not substitute for those of a licensed home inspector's.

Why is FHA blocking me from financing a house that has been determined structurally sound and in good condition, especially at a time when the economy could benefit from first time home buyers entering the market? Why is there an apparent discrepancy between the determinations of licensed home inspectors and FHA appraisers? Why are FHA appraisers able to make in my opinion, sweeping determinations when they are not as qualified as actual home inspectors?

More specifically, what can I do to alter this blockade? can I dispute or appeal any of this?

**A: FHA rules in this case due to the fact that the mortgage lenders' underwriting requirements depend upon the FHA appraisers recommendations.
FHA does not have to accept your home inspector's report.

[HUD-1]

FHA is going to insure a loan for 30 years, they have standards. What exactly are the $10k repair items? Certain items are required by statute: well/septic distances, curing defective paint(pre-1978) etc. Others MAY have the ability to be waived.