You don't always need a home inspection to get a mortgage, but lender requirements and state rules can require them.
A home inspection is a detailed review of a property’s condition. A home inspector looks at the structure, roof, electrical system, plumbing, heating and cooling systems, visible safety issues and other major components.
A home inspection is different from an appraisal. An appraisal is mainly used by the lender to estimate value and review whether the property meets loan program standards. A home inspection is for the buyer and gives a more detailed picture of the home’s condition before closing.
Most mortgage programs do not require a buyer to get a full general home inspection. However, the loan type, property condition, property location, state law and lender rules can trigger specific inspections before the loan can close.
Home Inspection Requirements By Loan Type Basics
| Loan Type |
Is A General Home Inspection Required? |
What May Still Be Required |
| Conventional Loan |
Usually no |
Appraisal, appraisal-related repairs, pest inspection, well or septic inspection, or state-required inspection |
| FHA Loan |
No, but FHA strongly encourages one |
FHA appraisal, repair inspections, pest inspection, well or septic inspection, or other property-specific review |
| VA Loan |
Usually no |
VA appraisal, wood-destroying insect inspection in required areas, repairs or local VA requirements |
| USDA Loan |
Usually no |
USDA appraisal, property repairs, water or septic review, and any additional inspections required by the lender or agency |
| Higher-Priced Mortgage Loan |
No special general inspection rule |
Escrow or appraisal-related federal rules may apply, but the HPML rule does not create a separate general home inspection requirement |
| High-Cost Mortgage |
No special general inspection rule |
Extra federal consumer protections apply, but the high-cost mortgage rule does not create a separate general home inspection requirement |
What A Home Inspection Covers
A general home inspection gives you more information about the condition of the property before you buy it. A qualified inspector typically reviews visible and accessible parts of the home, including the roof, foundation, structure, plumbing, electrical system, heating and cooling systems, appliances, attic, crawl space, basement, windows, doors and drainage.
HUD’s “For Your Protection: Get A Home Inspection” notice explains that a home inspection gives the buyer more detailed information about the overall condition of the home. HUD says a qualified inspector can evaluate the physical condition of the structure, construction and mechanical systems, identify items that need repair or replacement, and estimate the remaining useful life of major systems and components.
Home Inspection Vs. Appraisal
A home inspection and an appraisal serve different purposes.
A home inspection helps the buyer understand the property’s condition. It can identify defects, safety concerns, maintenance problems and repairs that may not be obvious during a showing.
An appraisal helps the lender evaluate the property. The appraiser estimates market value and may review whether the home meets loan program property standards. The appraisal does not guarantee that the home is free of defects.
HUD tells FHA borrowers that an appraisal will be performed to estimate the value of the property, but the appraisal does not guarantee that the house is free of defects. HUD advises buyers to inspect the property carefully or hire a professional inspection service.
Is Home Inspection Required For Conventional Loans?
A general home inspection is usually not required for a conventional loan. A conventional loan is a mortgage that is not insured or guaranteed by a government agency.
That does not mean the property can avoid lender review. Conventional loans usually require an appraisal unless the loan is eligible for an appraisal alternative or waiver. The lender may also require additional inspections if the appraisal identifies property condition concerns.
Fannie Mae’s Selling Guide includes property eligibility and appraisal requirements for conventional loans, including requirements related to property condition, safety, soundness and marketability. These are lender and investor requirements, not the same as a buyer’s general home inspection.
Conventional borrowers may still choose to order a home inspection before closing. That inspection can help identify problems with the roof, foundation, plumbing, electrical system, heating and cooling systems, pests, drainage or safety issues.
Is Home Inspection Required For FHA Loans?
No. FHA loans do not require the buyer to get a full general home inspection. An FHA loan is a mortgage insured by the Federal Housing Administration and made by an FHA-approved lender.
FHA does require an FHA appraisal. The appraisal reviews value and checks whether the property appears to meet FHA minimum property requirements. Minimum property requirements are basic standards related to safety, soundness and security. In plain language, FHA wants the home to be safe enough to live in, structurally sound and secure.
HUD’s home inspection notice says a home inspection will only happen if the buyer arranges one and that FHA does not perform home inspections. HUD still encourages buyers to get one because it provides more detailed information about the overall condition of the home.
An FHA appraisal can still lead to required repairs or additional inspections. For example, if the appraiser sees possible structural problems, roof damage, peeling paint, water damage, pest concerns, well issues or septic concerns, the lender may require repairs, documentation or a specialist inspection before closing.
Is Home Inspection Required For VA Loans?
A general home inspection is usually not required for a VA loan. VA stands for Department of Veterans Affairs. A VA loan is a mortgage backed by the Department of Veterans Affairs for eligible service members, veterans and certain surviving spouses.
VA loans require a VA appraisal. The VA appraisal checks value and whether the property meets VA minimum property requirements. Minimum property requirements are basic standards for safety, sanitation and structural soundness.
A VA appraisal is not the same as a home inspection. Buyers can still order their own home inspection to review the property more thoroughly.
VA does require wood-destroying insect inspections in certain states and locations. Wood-destroying insects include termites and other pests that can damage wood framing or structural components. VA says only states requiring a wood-destroying insect inspection are included on its local requirements list. If a state is not listed, the inspection is not required unless the VA appraisal report notes specific issues.
VA also states that a wood-destroying insect inspection is always required if the appraisal report indicates evidence of wood-destroying insect damage or an active infestation.
Is Home Inspection Required For USDA Loans?
A general home inspection is usually not required for a USDA guaranteed loan. A USDA guaranteed loan is a mortgage for eligible borrowers buying in qualifying rural and suburban areas.
USDA loans require the lender to make sure the property meets USDA property and appraisal requirements. The property must be in an eligible rural area, meet program standards and be acceptable for the loan guarantee.
USDA’s Chapter 12 property and appraisal guidance says lenders must ensure that the property meets agency standards. USDA states that minimum property requirements are intended to protect the borrower’s interest, reduce lender loss and reduce risk to the government if the loan defaults.
A USDA appraisal may identify repairs or additional inspections that must be completed before closing. USDA loan origination guidance says that if an appraisal calls for repairs or additional inspections, those issues must be addressed.
USDA borrowers may still order a separate general home inspection. That inspection can help identify problems that may not be fully evaluated through the appraisal process.
Is Home Inspection Required For Higher-Priced Mortgage Loans?
No special general home inspection requirement applies just because a loan is a higher-priced mortgage loan. A higher-priced mortgage loan, or HPML, is a mortgage with an annual percentage rate that exceeds a federal pricing threshold compared with the average prime offer rate. In plain language, it is a loan priced above a federal benchmark for similar mortgages.
Federal HPML rules include special requirements for certain loans, including escrow requirements and appraisal-related rules. However, the HPML rule does not create a separate requirement for the borrower to obtain a general home inspection.
A lender may still require inspections because of the property condition, appraisal findings, loan program, state law or investor rules.
Is Home Inspection Required For High-Cost Mortgages?
No special general home inspection requirement applies just because a loan is a high-cost mortgage. A high-cost mortgage is a separate federal category under the Home Ownership and Equity Protection Act, often called HOEPA. HOEPA is a federal law that adds protections for certain expensive mortgage loans.
A loan can become a high-cost mortgage based on rate, points and fees or prepayment penalty triggers. The high-cost mortgage rule includes extra disclosure and consumer protection requirements, including escrow requirements, but it does not create a separate general home inspection requirement.
A high-cost mortgage may still need inspections for other reasons. For example, the loan program, lender, appraiser, state law or property condition may require a pest inspection, repair inspection, well inspection, septic inspection or other specialty review.
Common Inspections That May Be Required
Even when a general home inspection is optional, specific inspections may be required before closing.
| Inspection Type |
When It May Be Required |
What It Reviews |
| Wood-Destroying Insect Inspection |
Required for some VA loans by location or when damage is noted, and may be required by other programs or lenders |
Termites, carpenter ants, wood-boring beetles and other pests that can damage wood |
| Well Water Inspection |
May be required when the home uses a private well |
Water quality, safety and supply |
| Septic Inspection |
May be required when the home uses a private septic system |
System function, condition and health or local code concerns |
| Roof Inspection |
May be required when the appraiser or lender cannot confirm roof condition |
Remaining life, leaks, damage and needed repairs |
| Structural Inspection |
May be required when cracks, settlement or other structural concerns are visible |
Foundation, framing, load-bearing components and structural movement |
| Repair Inspection |
May be required after lender-required repairs are completed |
Whether required repairs were finished properly |
State And Local Inspection Requirements
State and local rules can add inspection requirements even when the mortgage program does not require a general home inspection.
Some states, counties or cities require point-of-sale inspections. A point-of-sale inspection is a local inspection required when a property is sold. It may review health, safety, occupancy, code or exterior maintenance issues.
State or local rules may also affect:
- Wood-destroying insect inspections
- Well water testing
- Septic system inspections
- Smoke alarm requirements
- Carbon monoxide alarm requirements
- Flood zone documentation
- Occupancy permits
- Private road or access requirements
The VA’s local requirements page is one example of how inspection rules can vary by location. The VA lists states that require wood-destroying insect inspections and explains that states not listed generally do not require the inspection unless the appraisal report identifies a specific issue.
Borrowers should check state and local requirements before waiving inspections. A contract can say the buyer is waiving a general inspection, but that does not remove inspections required by law, the lender, the appraiser or the loan program.
Should You Get A Home Inspection If It Is Not Required?
Yes, in most cases. A home inspection can identify repair issues before you close. It can also help you decide whether to negotiate repairs, ask for a seller credit, adjust your offer or walk away if your contract allows it.
HUD encourages buyers to get a home inspection and explains that the inspection gives more detailed information about the home’s overall condition than an appraisal.
A home inspection is especially useful for older homes, homes with visible deferred maintenance, homes with private wells or septic systems, homes in termite-prone areas, properties with additions or homes with prior water intrusion.
What Happens If The Inspection Finds Problems?
If your home inspection finds problems, the next step depends on your purchase contract, loan type and lender requirements.
You may be able to:
- Ask the seller to make repairs
- Ask for a seller credit if allowed by the loan program and contract
- Renegotiate the purchase price
- Order a specialist inspection
- Cancel the contract if your inspection contingency allows it
An inspection contingency is a contract clause that gives the buyer time to inspect the property and respond to the findings. In plain language, it can give you a way to renegotiate or cancel if the inspection reveals serious problems.
What Happens If The Appraisal Requires An Inspection?
If the appraisal calls for an inspection, the lender usually must resolve that issue before closing. The lender may require a specialist report, repairs, photos, invoices, permits or a final inspection.
For USDA loans, agency guidance says that if the appraisal calls for repairs or additional inspections, those issues must be addressed.
For FHA, VA and conventional loans, the same general principle applies. If the appraiser or lender identifies a condition that affects eligibility, safety, soundness, marketability or required property standards, the loan may not close until the lender accepts the documentation or repairs.
The Bottom Line
Most mortgage programs do not require a buyer to order a full general home inspection. Conventional, FHA, VA and USDA loans all rely on appraisals and property standards, but an appraisal is not a substitute for a home inspection.
Specific inspections may still be required based on the loan type, property condition, appraisal findings, state law or local requirements. Buyers should consider a home inspection even when it is optional because it can reveal issues that affect cost, safety and long-term ownership.
Frequently Asked Questions
Is A Home Inspection Required For A Mortgage?
Usually no. Most mortgage programs do not require a full general home inspection. However, lenders may require an appraisal, repair inspection, pest inspection, well inspection, septic inspection or other review depending on the property and loan type.
Is A Home Inspection The Same As An Appraisal?
No. A home inspection reviews the property’s condition for the buyer. An appraisal estimates value for the lender and may check whether the property meets loan program standards. An appraisal does not guarantee the home is free of defects.
Is A Home Inspection Required For An FHA Loan?
No. FHA does not perform or require a full general home inspection. FHA does require an appraisal, and HUD encourages buyers to arrange their own inspection.
Is A Home Inspection Required For A VA Loan?
A full general home inspection is usually not required for a VA loan. However, VA may require a wood-destroying insect inspection in certain states or when the appraisal identifies evidence of pest damage or active infestation.
Is A Home Inspection Required For A Conventional Loan?
Usually no. Conventional loans generally require lender property review through an appraisal or eligible appraisal alternative, but the buyer’s full general home inspection is usually optional.
Is A Home Inspection Required For A USDA Loan?
A full general home inspection is usually not required for a USDA guaranteed loan. However, the lender must ensure the property meets USDA standards, and repairs or additional inspections may be required if the appraisal identifies issues.
Can A Lender Require Repairs After A Home Inspection?
Sometimes. If the lender reviews the inspection report and identifies issues that affect loan eligibility, property standards or insurability, repairs or documentation may be required before closing.
Should I Waive The Home Inspection?
Waiving a home inspection can increase risk because you may lose the chance to identify major defects before closing. Buyers should understand the property, contract terms and potential repair costs before waiving an inspection.
Who Pays For The Home Inspection?
The buyer usually pays for the home inspection unless the purchase contract says otherwise. Specialty inspections, such as pest, well, septic or structural inspections, may be paid by the buyer or seller depending on the contract, local custom and loan program rules.
What Is A Repair Inspection?
A repair inspection checks whether required repairs were completed. It may be requested by the lender after the appraiser, inspector or loan program identifies repairs that must be finished before closing.
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