Correspondent ALERT – Updated Inspection Date for FHA Loans in Certain Florida Counties

HUD has issued a temporary waiver for properties, secured by FHA loans, impacted by Hurricane Helene and Hurricane Milton in the following highlighted counties:

Impacted Counties

Florida
Brevard	Charlotte	Citrus	Clay
Collier	DeSoto	Duval	Flagler
Glades	Hardee	Hendry	Hernando
Highlands	Hillsborough	Indian River	Lake
Lee	Manatee	Marion	Martin
Okeechobee	Orange	Osceola	Palm Beach
Pasco	Pinellas	Polk	Putnam
Sarasota	Seminole	St. Johns	St. Lucie
Sumter	Volusia

Inspection Requirements Table

Refer to the following table, which outlines the inspection requirements by program and loan closing status.

Loan Program	Loan Status	Inspection Requirements
· Fannie Mae · Freddie Mac · VA	Signed/Closed/Not Funded	· Follow standard inspection requirements noted below, OR · Provide a Lender’s Certification dated on or after Oct 11, 2024 in lieu of a property inspection – must be completed on letterhead, verify the property was not impacted by the disaster event, and include photographs taken by the Lender
Not Signed/Closed	· Delay closing and require inspection; follow standard inspection requirements noted below
· Access Non-QM · Edge Non-QM · Elite QM · Foreign National DSCR · Conventional Investment Property · FNMA/FHLMC Second Home & Investment	Signed/Closed/Not Funded	· Fund loan, delay delivery, and require inspection; follow standard inspection requirements noted below
Not Signed/Closed	· Delay closing and require inspection; follow standard inspection requirements noted below
FHA Purchase, Rate/Term, Simple Refinance, Cash-Out Refinance	Signed/Closed/Not Funded	· Satisfactory FHA inspection required prior to purchase by Arc Home; follow standard inspection requirements noted below
Not Signed/Closed	· Delay closing and require inspection; follow standard inspection requirements noted below
FHA Streamline Refinance	Signed/Closed/Not Funded	· Follow standard inspection requirements noted below, OR · Provide a Lender’s Certification dated on or after Oct 11, 2024 in lieu of a property inspection – must be completed on letterhead, verify the property was not impacted by the disaster event, and include photographs taken by the Lender
Not Signed/Closed	· Delay closing and require inspection; follow standard inspection requirements noted below

Inspection Requirements (Standard)

For all transactions in any of the affected counties, property inspections must satisfy the following criteria, as applicable per loan type.

For FHA Loans in the highlighted counties above:

· For all FHA Purchases, Rate/Term Refinances, Simple Refinances and Cash-Out Refinances with an appraisal dated prior to October 11, 2024, a reinspection of the subject property will be required. The inspection report must meet all FHA disaster inspection requirements and be dated on or after October 11, 2024. If the initial appraisal effective date is on or after October 11, an additional inspection report is not necessary. As a reminder, inspections for FHA properties must be completed by an FHA-Roster Appraiser

For FHA Loans in all other (not highlighted) counties above:

· For all FHA Purchases, Rate/Term Refinances, Simple Refinances and Cash-Out Refinances with an appraisal dated prior to October 20, 2024, a reinspection of the subject property will be required. The inspection report must meet all FHA disaster inspection requirements and be dated on or after October 20, 2024. If the initial appraisal effective date is on or after October 20, an additional inspection report is not necessary. As a reminder, inspections for FHA properties must be completed by an FHA-Roster Appraiser.

Fannie Mae, Freddie Mac, FHA Streamline, VA, Conventional Investment Property, FNMA/FHLMC Second Home & Investment Property, Access Non-QM, Edge Non-QM, Foreign National DSCR, and Elite QM

· If an appraisal has been completed prior to Oct 11, 2024, an exterior reinspection is required for ALL Fannie Mae, Freddie Mac, VA Purchase, VA Cash-Out Refinance, Conventional Investment Property, FNMA/FHLMC Second Home & Investment Property, Access Non-QM, Edge Non-QM, Foreign National DSCR, and Elite QM loans. For any Conventional loan with a Property Inspection Waiver, an inspection dated on or after Oct 11, 2024 is required. An inspection dated on or after Oct 11, 2024 is also required for ALL FHA Streamline Refinance transactions and VA Interest Rate Reduction Refinance Loans (IRRRLs).

· The reinspection must be dated on or after Oct 11, 2024 and performed by an appraiser, include exterior photographs of the subject, and verify that the property was not impacted by the disaster event. Note: If the exterior inspection indicates the property sustained any damage, an additional interior inspection of the property must be completed by the appraiser.