How do I lodge a complaint about the condition of an existing home?

Unfortunately, HUD has no authority to repair the defect or compensate the homebuyer for any problems. On an existing home, FHA does not warrant the condition of the property. The purpose of an FHA appraisal is to estimate the value of the property for insurance purposes.

FHA may take disciplinary action against an appraiser in the event that the appraiser committed a serious mistake during the appraisal process.

You should contact your Lender and/or the real estate agent to discuss your concerns, or discuss your situation with an attorney.

HUD Policy Determination

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02854