Are inspection fees for construction loans included in the APR calculation if the inspections are done by a non affiliated third party? I know that appraisal fees are not included, but I am not sure about inspection fees.

Please refer to the Official Staff Commentary to Regulation Z section 226.4(a). Comment 1(ii)(A) indicates that inspection and handling fees for the staged disbursement of construction loan proceeds are finance charges. It does not matter who performs the inspections.

Classification of inspection fees as a FC is unaffected by the method or timing of collection, If they are paid at or before settlement, or are withheld from proceeds at any time (net draws), then they are also Prepaid Finance Charges and have more impact on the APR.