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c. Home Inspection <br />For applicants applying for both SHIP funds and a loan from a financial institution, <br />the applicable financial institution shall determine what type of home inspection is <br />needed. The financial institution shall arrange for the inspections through their <br />established procedures and shall be responsible for all approval contingencies. <br />For Purchase Assistance loans, the following inspections for all existing housing units <br />five years or older is recommended: <br />i. Termite Inspection <br />ii. Roof <br />iii. Plumbing system <br />iv. Electrical system <br />V. Heating and air conditioning system <br />All inspections must be performed by public service licensed inspectors; registered or <br />certified residential, building, general contractors; or licensed trade contractors as <br />appropriate. Home inspection reports requested by the county shall be reviewed by the <br />county's staff to determine the condition of the home. <br />Based on the results of the home inspection reviewed by the bank or the county, one of <br />the following three actions will be taken: <br />i. If the home is in good condition, the purchase assistance loan application will be <br />submitted to the loan review committee for approval; or <br />ii. If the home needs some rehabilitation work, the applicant may receive a <br />combination purchase assistance and rehabilitation loan. A combined purchase <br />assistance and rehabilitation loan application will be submitted to the loan review <br />committee for approval; or <br />iii. If the home is in excessive disrepair and cannot be fixed, the loan application will <br />not be approved. <br />Home inspection charges are considered to be eligible closing cost expenses and <br />payable through SHIP funds. In cases where the county requests a home inspection, <br />but due to the condition of the home a purchase assistance loan cannot be approved, <br />the cost of the home inspection will be paid through the administration portion of SHIP <br />funds. <br />42 <br />