Financing a Home Inspection

I learned something new on Friday* – apparently homebuyers can finance up to $200 of the cost of a home inspection.

This, from a new (to me) form I read in a closing on Friday:

HUD DOES NOT WARRANT THE CONDITION OF A PROPERTY. It is important for you to have a home inspection performed on the property if you wish to purchase (sic) in order to purchase in order to identify any possible defects. Up to $200 of the cost to perform the inspection may be financed into your mortgage. Names of home inspection companies can be found in the yellow pages of your telephone directory under the heading "Home Inspection Services."

A few thoughts –

1 – This was a plain vanilla, nothing crazy loan and transaction.

2 – The Yellow Pages? Really?

3 – Now is the time – at the closing table – to be "advising" purchasers that they may finance part of the home inspection?

4 – Yet another poorly-written government document.

5 – If you have to finance "up to $200" of the cost of a home inspection – perhaps the best $300-$500 you will ever spend – maybe you should continue to rent.

6 – Check out Page 3 – "I acknowledge that I have received and read  a copy of this Notice before signing the sales contract to purchase my property." We saw this at the closing.

Financing a Home Inspection in Charlottesville

200 Dollars Home Inspection Copy

* Closings on Fridays should be avoided at all costs; I’ll explain why in a forthcoming post.

(Visited 28 times, 1 visits today)


  1. Pingback: Top 5 real estate posts of the day Monday 6/1/2009

  2. Mark June 2, 2009 at 21:15

    I would have financed my home inspection, but my credit was stretched too far after financing $4000k worth of spinner rims for my car. Had to pay cash.

  3. Randy Sawyer June 4, 2009 at 08:22

    This is quite interesting and perplexing. Jim, you say this was not a crazy type transaction with weird financing. Pretty much a vanilla type loan. Was it an FHA (or other government sponsored) loan? Was this document just part of the closing documents sent by the lender to the attorney?

  4. Jim Duncan June 4, 2009 at 23:18

    Randy –

    Yep. Standard non-FHA loan. Closing table was the first time we’d seen this doc. Weird. And a bit discomforting.


Leave A Comment

Your email address will not be published. Required fields are marked *