Is a Home Inspection Required for a Mortgage? Not Always—But Here’s When It Might Be

Before you close on your dream home, there’s one step that can save you from costly surprises: the home inspection. This is a thorough check of the home’s structure and functions that looks at everything from the roof, foundation, plumbing, and more.

But is a home inspection necessary for a loan? Most lenders don’t require a home inspection for a mortgage—but you might still need one to close.

Whether you’re buying a house in Philadelphia, PA or found your dream home in Phoenix, AZ, the inspection can quickly shift from optional to essential. Here’s when a home inspection matters for your mortgage—and why it’s worth getting one.

Is a home inspection required for a mortgage?

No, home inspections are not required by most mortgage lenders.

However, your lender will almost always ask for a home appraisal, which is an evaluation of what the home is worth. This helps the lender mitigate their risk and confirm that the loan amount is in line with what the property is actually worth. 

For conventional loans, the appraiser is mainly focused on value, not the overall condition, unless there are major issues that could affect livability or resale.

But a home inspection is still an important part of the home buying process. What’s discovered during the home inspection could be a deal breaker for some buyers, and potential issues that are uncovered during the appraisal or insurance process could hold up closing.

Appraisal vs. home inspection: what’s the difference?

A home inspection is not required by most lenders to approve a mortgage. But, it can be necessary if the appraisal raises concerns, or if your insurer requires it for coverage.

Is a home inspection required for government-backed loans?

Loans with stricter requirements, like FHA, VA, or USDA loans, usually don’t technically need a home inspection to qualify for a mortgage. But some government loans might require specialized safety inspections, like for pests or mold, that fall outside the scope of a standard home inspection before approving the loan. 

This is known as meeting the minimum property standards for these non-conventional loans. For government loans, an appraiser will do a much more thorough safety inspection during the appraisal process. Any fixes found in the appraisal for a home financed with a government loan will need to be completed before the loan will be issued. 

When a home inspection might be required anyway

While most mortgage lenders only ask for an appraisal report, there are still situations where an inspection could be needed to secure a loan. 

Lender concerns after the appraisal

While an appraisal is primarily for assessing the value of a home, issues found during the process can prompt a lender to ask for a full home inspection before approving the loan. Some fixes found in the inspection might be mandatory to secure financing.

Pest or WDO inspections

Certain states or loans might require a pest or wood-destroying organism (WDO) inspection, especially in humid areas or places known for termites like Miami, FL or Washington, DC. If evidence of pest damage is found, a more thorough inspection might be needed to determine the extent of the repairs.

Insurance requirements

Sometimes insurance companies order their own inspections, especially for older homes, high-risk areas, or recently renovated homes so they can assess liability hazards before issuing a policy.

Even if the lender doesn’t ask for a home inspection, you can’t close your loan without insurance—and insurance might hinge on an inspection.

Why you should still get a home inspection—even if it’s not required

Even if your lender doesn’t require one, a home inspection is still one of the smartest moves a buyer can make. For the small cost of a home inspection, the report can bring peace of mind and protect your investment upfront by identifying costly problems before you close.

If the home inspection lists major issues, a buyer has the option of asking for repairs from the seller, negotiating the price, or walking away from the home. An inspection can reveal problems that might affect the ability to get insurance or delay financing ahead of time.

In short? While a home inspection isn’t required, it’s a highly recommended step in the home-buying process—and might even make the lending process smoother for all parties involved.

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