U. S. Department of Housing and Urban Development
Washington D.C. 20410-8000

OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING - FEDERAL HOUSING COMMISSIONER

TO: ALL APPROVED MORTGAGEES
SUBJECT: Single Family Loan Production - Importance of Home Inspection

   As discussed in Mortgagee Letter 96-29 (ML 96-29), FHA would no longer be prescribing the document that notifies homebuyers of potential lead-based paint hazards. After December 6, 1996, EPA pamphlet "Protect Your Family From Lead in Your Home" would become the official lead-based paint disclosure. That disclosure is the responsibility of the owner of the living unit selling or renting the property. Lenders no longer need to have evidence the disclosure was provided and do not need to retain anything in the case binder. However, the previous lead-based notice required by FHA served an additional purpose by alerting homebuyers to the importance of obtaining a home inspection when purchasing an existing home.
   FDA believes that homebuyers are best served when they are aware of their own responsibilities for assuring that the property is acceptable to them and that FHA does not warrant the condition of the home. Homebuyers are also encouraged to obtain an inspection service to make the determination that the house of free defects.
   Therefore, we have developed the attached Importance of Home Inspections form is to be signed and dated by the borrower(s) on or before the date that the sales contract is executed (or re-executed if necessary) for all transactions that will involve FHA mortgage insurance on existing property. New construction is exempt since the house was recently inspected during construction; refinance transactions are also exempt. This new form replaces the dual inspection notice/lead-based paint disclosure required by ML 96-10. Either notice on inspections may be used until January 1, 1997 at which time the attached Importance of Home Inspections form must be used. 

The building industry is forever changing with new building codes seem to change every three to four years with admendments,and adjustments to keep up with changing materials being introduce to the make.A smart consumer should always gather information about home trends,information on the builder,and compliants complied against him/or her.There are wonderful site to get this information.Try this site Home source Info