You do need to pass inspection with the city.

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule:The HomeStyle program has a maximum 4 draw process.The initial draw can be up to 50% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information:Ø Signed Draw Request by borrower and contractorØ Signed All Bills Paid AffidavitØ GMG review and approve the draw request and will release funds for disbursementØ A check will be issued in the name of the borrower and contractor and delivered to borrower via USPSØ An inspection of work to date will be performed at 50% completeFinal Draw Information:Ø Signed Draw RequestØ Final inspection/Completion Certificate will be required for release of final fundsØ A Title Update showing property free from lien or encumbranceØ General Contractor’s Lien Waiver AffidavitØ Affidavit of Completion GR will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns:Changes to the initial plan are not permitted unless prior approval by Guaranteed Rate.

Do they schedule the inspections ahead of time or just show up randomly and unannounced?

The home inspection really shouldn't have anything to do with the interest rate on such a loan.

My realtor found the city building inspection report which details that the unit needs to be de converted as it cannot be brought up to code.

I would inspect the property myself.

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

Within minutes of uploading entire disclosure packet, it automatically detects various type of documents (home inspection, TDS, solar, roof, pest etc.) and creates an insightful report of safety risks, costly repairs.

Expand to northwest Indiana— areas you’ve driven and inspected yourself, so no more than an hour away.Get a team in place and try it for a few years.

The biggest thing I have encountered in numerous inspections is chipped or flaking paint in pre-1978 homes that have children living in them.