If you’re buying a home with an FHA loan, you’ve probably heard about the FHA appraisal, but what exactly is the appraiser looking for?

FHA’s primary focus is on health, safety, and functionality. The basic idea is everything in the home should work as intended, and there should be no conditions that pose a risk to the property or its occupants.

Here’s a breakdown of what FHA appraisers typically check:

General FHA Appraisal Checks

• Utilities must be on so the appraiser can test systems and appliances
• All appliances must function properly
• Proper drainage around the perimeter of the house
• Heating system must work (AC, if present, should also work)
• Water pressure must be adequate; both hot and cold water must work
• Water heater must function and be strapped per local code
• Attic & crawl space: inspected (at least head-and-shoulders); no water issues, no frayed wires, no excessive debris
• Paint condition:
  • Homes built before 1978 → no peeling or chipping (due to lead-based paint risk)
  • Homes built after 1978 → no defective paint or exposed bare wood
• Electrical outlets must work and have cover plates
• Toilets must flush and be properly mounted
• Any active termite infestation must be treated
• Minor cosmetic issues (stained carpet, old paint) are okay; major health/safety concerns must be fixed
• Windows must open/close; no major safety concerns from cracked glass
• No dangling wires or exposed electrical hazards
• Smoke and carbon monoxide detectors as required by local code
• Garage firewall must be intact (no pet doors, missing sheetrock, or hollow doors)
• Roof must not leak and must have at least two years of useful life left
• No hazards, environmental contaminants, noxious odors, or excessive noise that affect livability
• Appraiser can call out trip hazards if they pose a safety risk
• Some situations require the appraiser’s judgment, applying the spirit of FHA guidelines

Minimum Requirements for Living Unit

Each living unit must contain:

• A safe, continuous, and sufficient water supply under adequate pressure for household uses
• Sanitary facilities and a safe method of sewage disposal, including at least one bathroom (with toilet, sink, and bathtub or shower)
• Adequate space for healthful and comfortable living conditions
• Heating suitable for healthful and comfortable living
• Domestic hot water
• Sufficient electricity for lighting and mechanical equipment
• Kitchen facilities adequate for food preparation, including a sink with potable running water and a stove utility hookup

10 Things You Might Not Know About FHA Appraisal Guidelines

1. Attic Access: Even if sealed off, attic spaces must be opened for inspection.
2. Hoarder Conditions: Excessive debris preventing inspection must be cleared.
3. Roofing Layers: Max three layers allowed; if two exist and repairs are needed, all layers must be replaced.
4. All Structures Count: Every structure on the property (barns, sheds) must meet FHA standards.
5. No Zero-Value Features: Every part of the property (like a rundown garage) can’t be ignored.
6. Graffiti: Must be removed due to safety concerns.
7. Comparable Sales: Appraisers can’t use comps older than 12 months.
8. Pools: Local pool safety standards apply; pools should be filled so equipment can be tested.
9. Garage Pet Doors: Pet doors in garage-to-house doors breach the required firewall and are a safety issue.
10. Subjective Calls: Appraisers apply FHA’s intent — is it safe, functional, and marketable?

Where to Learn More

You can find these detailed requirements in the Official FHA Mortgage Guidelines (HUD Handbook 4000.1) here: Official FHA Guidelines Link

If you have questions about FHA property requirements or appraisals, drop them below!