I have a sale pending in which the buyers are seeking an IHA loan. Here are some of the requirements for the inspection.

• If the property is served by an individual water supply system, the local health authority or state certified laboratory must perform a water quality analysis.

• If the property is served by an individual septic system, the septic system must be free of observable evidence of system failure. A FHA roster appraiser, a government health authority, a licensed septic system professional, or a qualified home inspector may perform the septic system evaluation. The separation distances between a well and septic tank, the drain field, and the property line should comply with HUD guidelines or state well codes.

• For any property in which the lender or FHA roster appraiser is in doubt about the operation of septic systems for the dwelling or in the neighborhood (e.g. if the property isvacant), the local health authority or a septic system professional has determined the viability of the system.

• Any repairs necessary for the dwelling to be structurally sound, functionally adequate, and in good repair must have been completed prior close of escrow.  Paint must be complete, and crack free.  Floor coverings in all rooms, windows in good repair, baseboards and trim complete.