What is a property inspection?
A property inspection is a professional evaluation of a home’s structure, systems, and safety. While it’s not always required, it’s your opportunity to identify potential issues and avoid costly surprises after closing.
Why It Matters
Each loan type has different guidelines to protect you and your lender. We’re here to help you:
- Understand inspection timelines
- Know which inspections might be required
- Prepare for next steps based on the results
Loan-By-Loan Breakdown
The HOA/COA program from First Federal Bank streamlines payment processing, enhances cash flow, and bolsters audit control. You will receive the cost-effective benefits of automated processing and secure updates to your accounts receivables. Best of all, these solutions will save you time and expense compared to in-house processing.
Conventional Loans
- Inspection not required, but strongly encouraged.
- Appraisal valid for 120 days (4 months).
- Additional inspections (septic, termite, roof, foundation) only if noted by appraiser.
- Roof must have at least 2 years of life expectancy.
FHA Loans
- Appraisal good for 120 days, or 1 year for new construction.
- Appraiser may flag issues—if so, repairs or inspections may be required.
- Water test required if the property has a private well and no local guidelines exist (must test for Lead, Nitrate, Nitrite, E. Coli, and Coliform).
- Septic must be inspected if noted, and public systems must be connected if feasible.
- Termite inspection only if noted; new construction requires NPCA-99b soil treatment (less than 1 year old).
- Roof must have at least 2 years of life expectancy.
VA Loans
- Appraisal valid for 180 days (6 months).
- VA Minimum Property Requirements (MPR) apply.
- If well/septic systems are used, strict testing and distance guidelines apply.
- Termite inspection required if noted, or WDO letter (valid 60 days).
- Roof must have 5 years of remaining life.
- Structural engineer report required for manufactured homes.
USDA Loans
- Appraisal valid for 120 days, or 1 year for new construction.
- Appraiser-noted issues may trigger inspection requirements.
- Water tests, septic, and termite inspections follow similar guidelines as FHA.
- Foundation inspection required for manufactured homes (engineer certification).
- Roof must have at least 2 years of life expectancy.
Common Inspection Types (If Required)
| Inspection Type | May Be Required For... |
|---|---|
| Septic | FHA, VA, USDA if noted on appraisal |
| Well/Water Test | If on private well with no local water authority |
| Termite (WDO) | VA (often required), others if noted |
| Roof Life Expectancy | All loan types have minimum guidelines |
| Foundation/Structural | Required for manufactured homes |
