A home inspection checklist for buyers is a structured walkthrough document used to evaluate a property's structural, mechanical, and safety conditions before closing on a mortgage. For FHA and VA loans, the inspection works alongside a government-required appraisal that verifies the home meets minimum property standards for safety, soundness, and habitability. While FHA and VA loans don't legally require a separate home inspection, completing one protects buyers from costly post-closing surprises and provides leverage to negotiate repairs, price reductions, or seller credits before signing.
Buying a home with an FHA or VA loan comes with built-in protections that conventional buyers don't get automatically. The federal appraisal process flags safety and livability issues that a standard appraisal might overlook. But that protection has limits, and a thorough home inspection fills those gaps. Here's exactly what to check, what FHA and VA appraisers look for, and how to use the results to your advantage.
The Difference Between an Appraisal and a Home Inspection
These two reviews constantly get confused, and the distinction matters because each serves a different purpose. A government-backed appraisal determines a home's value and confirms that it meets the minimum standards set by HUD or the Department of Veterans Affairs. A home inspection is a more thorough assessment of the home's condition, conducted by a licensed inspector you hire yourself.
An appraiser spends roughly 30 to 60 minutes at the property and produces a value-focused report. A home inspector spends 2 to 4 hours and produces a 30- to 50-page document covering the roof, foundation, plumbing, electrical, HVAC, appliances, drainage, attic, and crawl spaces. The appraiser tells the lender whether the property is acceptable collateral. The inspector tells you whether the property is acceptable to live in.
Both reports can identify problems, but only the inspection gives you the granular, room-by-room detail you need to make a confident purchase decision.
What the FHA Appraisal Checks
FHA appraisals are stricter than conventional appraisals because the federal government insures the loan and wants to make sure the property is safe and livable for the buyer. The appraiser works through a checklist tied to HUD's Minimum Property Requirements, which cover everything from the roof to the electrical system.
Common items an FHA appraiser flags include peeling paint on homes built before 1978 due to lead concerns, missing handrails on staircases with three or more risers, exposed wiring or non-functional outlets, a roof with less than two years of remaining useful life, foundation cracks or settlement issues, water damage and active leaks, broken or missing windows, inadequate heating in living areas, and any condition that creates a health or safety risk for the occupant.
If the appraiser identifies issues, repairs must typically be completed before closing. The appraiser will return to verify the work, and only then can the loan proceed.
A few important updates worth knowing for 2026: FHA appraisals are now valid for 180 days from the report's effective date, not the older 120-day window many websites still reference. HUD made this change in 2022 to give buyers more flexibility during longer transactions. If the appraisal is updated before expiration, it can remain valid for up to one year after the original effective date.
What the VA Appraisal Checks
VA appraisals are based on the Department of Veterans Affairs' Minimum Property Requirements, which ensure veterans aren't using their hard-earned benefits to buy a home that's unsafe or unsuitable. The list runs more than 30 items and overlaps significantly with FHA requirements.
A VA appraiser checks for safe year-round access to the property by car or on foot, a roof in good condition with adequate remaining life, working mechanical systems including heating, plumbing, and electrical, the absence of lead-based paint hazards in older homes, no active wood-destroying insect damage, a permanent and adequate heat source (space heaters and wood stoves alone usually don't qualify), safe drinking water and a functioning sewage system, and clear of any condition that compromises the home's structural integrity.
One quirk of the VA process: your lender doesn't pick the appraiser. The VA assigns one from its approved panel, which prevents conflicts of interest and maintains the valuation's independence. VA appraisal fees range from $400 to $1,200, depending on the region and property type. Some areas also require a separate pest inspection paid for by the buyer.
Why You Still Need a Private Home Inspection
The FHA and VA appraisals catch the big stuff. They don't catch everything else. An appraiser isn't going to crawl into your attic to check insulation depth, run every faucet to test water pressure, or pull the panel cover off your electrical box to check for double-tapped breakers. A home inspector does all of that.
Consider a real example. A buyer in Houston put an offer on a 1985 ranch home using an FHA loan. The appraisal came back clean. The independent home inspection found a failing AC compressor with maybe 6 months of life left, a cast-iron drain line under the slab showing early signs of corrosion, and an electrical panel manufactured by a company involved in a major recall years ago. None of those would have stopped the FHA loan from closing. All three would have cost the buyer between $15,000 and $25,000 to address within the first two years. The seller agreed to replace the AC and provide a $4,500 credit toward the panel and plumbing, all because the inspection report gave the buyer something concrete to negotiate with.
That's the value. An inspection costs $300 to $500 in most markets and routinely returns 10 to 50 times that amount in negotiated repairs or credits.
Your Pre-Closing Home Inspection Checklist
Use this as a guide when walking through the property with your inspector. The inspector handles the technical evaluation, but knowing what they're looking for helps you ask better questions.
Start with the exterior. Check the roof for missing shingles, sagging, or visible damage. Look at the gutters and downspouts to make sure water is directed away from the foundation. Walk the perimeter and check for grading that slopes toward the house, which causes drainage problems. Examine siding, trim, and exterior paint for rot, cracks, or peeling.
Move to the foundation and structure. Look for horizontal or stair-step cracks, which can indicate settling. Check basement or crawl space walls for moisture stains, efflorescence, or active seepage. Note any doors or windows that don't close properly, which can signal foundation movement.
Inside the home, test every outlet, switch, and fixture you can reach. Run every faucet, flush every toilet, and check under every sink for leaks or water damage. Open and close every window. Run the heating and cooling system through a full cycle. Check for working smoke and carbon monoxide detectors. Look at the electrical panel for proper labeling and any visible burn marks or rust.
The attic and roof framing tell you a lot about the home's condition. Look for daylight coming through the roof, water staining on rafters or sheathing, signs of rodent activity, and adequate insulation depth. In the crawl space, check for standing water, exposed plumbing in good condition, and a vapor barrier.
Don't skip the appliances. Run the dishwasher, test the garbage disposal, check the oven and stovetop, and verify the water heater's age and condition. Most water heaters last 8 to 12 years, and a unit at the end of its life is a $1,500 to $3,000 replacement waiting to happen.
Using Inspection Results to Negotiate
Once the inspection report comes back, you have leverage. How you use it depends on your contract and the local market.
If your purchase agreement includes an inspection contingency, you have three main paths. You can ask the seller to make specific repairs before closing. You can ask for a price reduction or seller credit equal to the cost of the repairs, which lets you handle the work yourself after closing with a contractor of your choosing. Or you can walk away from the deal entirely and recover your earnest money if the issues are too significant or the seller won't negotiate.
The credit option is often the smartest play. Sellers tend to do the cheapest possible repair work, and a credit at closing puts the money in your pocket to hire someone you trust. For FHA and VA loans, certain safety-related repairs identified by the appraisal must still be completed before the loan closes, regardless of how you negotiate the inspection findings.
Common Mistakes to Avoid
Don't waive your inspection contingency to win a competitive offer unless you fully understand the financial risk. In hot markets, buyers sometimes waive inspection contingencies to make themselves more attractive to sellers. This can work, but it leaves you with no recourse if a $20,000 problem surfaces.
Don't hire the cheapest inspector you can find. A good home inspector saves you tens of thousands of dollars. A bad one misses the things that matter. Look for inspectors certified by InterNACHI or ASHI, with at least five years of experience and strong online reviews.
Don't skip the inspection on new construction. New homes have defects, too, often due to rushed labor or skipped inspections during construction. Many builders won't address issues after the one-year warranty expires, so catching them early matters.
Don't assume the FHA or VA appraisal replaces an inspection. The appraisal is a baseline. The inspection is the real evaluation.
The Bottom Line on FHA and VA Inspections
FHA and VA loans give buyers significant protections through their appraisal processes, but those protections aren't a substitute for a thorough home inspection. The appraisal answers the lender's question about whether the property meets minimum standards. The inspection answers your question about whether the home is worth living in for the next decade.
Spending $400 to $500 on an inspection before committing to the largest purchase of your life is one of the easiest financial decisions you'll make as a homebuyer. The leverage it gives you at the negotiation table, combined with the peace of mind of knowing exactly what you're buying, makes it well worth the cost on every FHA and VA transaction.
If you have questions about FHA or VA loan requirements, or want to understand how a home inspection fits into your specific loan scenario, request a quote or reach out to our team. With 85 combined years of lending experience, we'll help you navigate every step from offer to closing.