FHA Minimum Property Standards Checklist

FHA appraisals can make or break a deal, but knowing what to look for ahead of time can help you avoid costly surprises.

The FHA appraisal protects buyers, but it can feel like a roadblock to your dream home if you’re unfamiliar with the process. Wouldn’t it be great if you knew what to avoid during the house-hunting process to help predict whether a home would pass the FHA appraisal?

You should know that you’re not entirely powerless. As it turns out, you can look up the FHA minimum property standards.

Minimum property standards give families confidence and security about their investments. Safety, security, and soundness are just the core tenets of the MPS; the FHA has an entire handbook dedicated to what is and isn’t acceptable for a property. The handbook provides guidance for everything from site design to construction, which is why FHA appraisers exist, to make the process easy.

FHA Appraisal vs. FHA Inspection

Every FHA loan requires an FHA appraisal to confirm the home meets FHA minimum property standards and to determine the home’s fair market value. However, an FHA appraisal is not a complete home inspection.

While the appraiser checks for obvious safety and structural concerns, they do not inspect the home as thoroughly as a licensed home inspector. An inspection examines the property’s internal systems, structural components, and potential hidden issues that an appraisal might miss.

Remember, an appraisal is required for the FHA loan, and an inspection is optional but highly recommended to get a more complete picture of the home’s condition.

FHA Minimum Property Standards Checklist

Whether you’re interested in a listing or touring an open house, here’s a list of things buyers can look for that may be considered red flags to an FHA appraiser:

FHA Appraisal Red Flags to Look For

Buyers cannot replicate the appraiser's job. The FHA requires approved appraisers for a reason. Thankfully, the items above are all pretty easy to check for, and if you highlight one or more potential red flags in a home, it gives you a chance to see whether the seller would be willing to address them, or it might be a great sign to keep looking.

Buyers should also be aware of specific FHA minimum property standards. Below, we’ll discuss some rules and include questions you can pose to yourself or the seller to help determine whether a home is up to FHA standards. You could also find answers in the listing.

FHA Loan Paint Requirements

The FHA has specific requirements regarding peeling paint for properties built before 1978. This requirement is related to the potential presence of lead-based paint, which can be hazardous, especially for young children.

For properties built before 1978, the FHA requires that any peeling, chipping, or deteriorated paint be addressed if the appraiser determines it poses a risk of lead-based paint hazards.

The appraiser will identify such areas during the appraisal process.

It should also be noted that the HUD-EPA Lead Disclosure Rule states, “If the property was built before 1978, the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house.”

FHA Loan Roof Requirements

Does the home have water stains on the walls or ceilings? Do shingles look missing or warped?

These are strong indicators that a home’s roof may not meet FHA standards. The FHA requires that the roof be fully functional, meaning no leaks or severe damage.

The FHA also states that the roof should have at least two years of remaining life.

FHA Loan Crawl Space Requirements

Generally, the FHA requires that crawl spaces be free of debris, moisture, signs of pest infestation, and signs of structural issues. Crawl spaces must also have proper access and ventilation.

FHA Window Requirements

FHA requires functioning windows for safety and security. Broken latches, stuck windows, or those painted shut typically require repair. Damaged panes are also considered safety hazards and must be replaced before the loan can be approved.

Additionally, windows must be free of rot and severe deterioration, properly weatherproofed, and free of condensation between double-pane windows.

FHA follows the standard building code, which requires each bedroom to have at least one window large enough for escape or rescue in case of an emergency.

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