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FHA appraisal Requirements and how to fix them

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FHA Property Standards

FHA Property Requirement Checklist


From the low down-payment to the flexible property requirements, FHA loans are a very popular choice in Plattsburgh, NY.  From millennials to investor’s, a loan through the Federal housing authority is a great option to meet the needs of the ever changing market.  Although FHA doesn’t have the strictest property guidelines they do have the meet HUD minimum property standards.  Among them is having the property you wish to buy appraised and inspected. The appraisal will determine the market value of the property and the inspection will verify that the property meets the FHA’s minimum health and safety standards. Any issues that fall outside of the FHA’s minimum standards will need to be squared away prior to closing.  The good news is that most problems that do not meet guidelines can be fixed relatively easy.  At the end of the day It is up to the Appraiser to decide what does, or does not meet FHA guidelines, this list should be seen as a resource, not a definitive guide.

Keep reading to see the FHA Property Requirement Checklist

Ready to purchase a home with 3.5% down? Let’s start the home buying journey together. 

If you prefer to learn more about a No Money Down Home Loan (USDA Loan) read our informative guide.

If you are having issue with FHA Property conditions standards, work with a lender that will allow you to close without completing the home repairs through a tool known as a escrow holdback. 
FHA Appraisal

FHA Property Requirement Checklist

Anyone that has ever worked with an FHA loan knows how frustrating it can be since there is no published text defining ALL of the requirements.  The Federal Housing Administration has a guidebook and a website to reference; but often times the guidelines can be confusing.  Below find a “non‐official” list of common FHA requirements and issues.  Hopefully, this list will give real estate agents, sellers and buyers a better understanding of how the FHA requirements affect their situations.  This list is not meant to be a definitive text but more of “cheat‐sheet” to help us all.

1.  Paint – Paint is the most common FHA appraisal issue. On homes built prior to 1978 there is a potential for lead based paint; if there is any interior or exterior paint that is not in good condition or leaves exposed wood/metal surfaces it must be scraped, prepped and painted in a professional, workmanlike manner.  This includes paint that is cracked, peeling, alligatored, chipped, worn away or otherwise distressed.

2.  Safety Hand Rails – FHA requires that handrails and posts be installed to meet local guidelines and requirements. Typically, any exposed stair or deck more than 10 inches off the ground requires some form of safety rail to be installed. Two handrail requirements are that you have something to hang on to as you descent or ascend the stairs and also have a form of safety so you cannot fall. 

3.  Safety Railings – Railings have caused many FHA appraisal issues. Railings should be installed around decks, patios, porches and balconies were a person could fall off and be injured.  Railings should be constructed of an appropriate material, consistent with the construction of the other elements of the deck, patio, porch, etc.  They should be of a height consistent with local building codes.

4. Hot Water Tank – there should be an extension added to the pressure relief valve on a hot water heater that extends to within 6” of the floor.  This is to prevent accidental scalding and is a relatively inexpensive fix.  

5.  Windows – any windows that are broken, have broken panes, broken seals and/or do not operate properly should be replaced.

6.  Electrical outlets – while the FHA no longer requires GFCI outlets, many appraisers will defer to the local building code when calling for replacement.  In most municipalities, a GCFI outlet should be installed if the outlet is within 6‐feet of any water source.

7.  Lights – Outlets mounted on light fixtures (typical found in older bathrooms and kitchens) should be replaced with fixtures that have no outlets mounted on them.

8.  Doors – On FHA Appraisals all doors should be functional and must hang properly.  If a door is damaged or does not work properly it must be replaced in a professional, workmanlike manner.

9.  Barred Windows – all security bars must have the ability to be unlocked from the interior of the house.  If not, they must be removed or replace with bars that do unlock from the interior.  

10. Pavement / Driveways – while the FHA no longer requires an appraiser to call for the replacement of cracked or heaving pavement, it is up to the discretion of the appraiser to determine if it poses a safety hazard significant enough to warrant replacement.

11.  Roof – The FHA appraisal must state that the roof is repaired or replaced in a professional, workmanlike manner.

12.  Leaking Pipes – the leak must be corrected in a professional, workmanlike manner.

13.  Heat – the FHA requires a permanently installed central heat source that is able to heat all parts of a house to 50°F. 

14.  Flooring – all floors must be covered with an acceptable floor covering (i.e. hardwood floors, laminated flooring, vinyl flooring, tile, carpet, etc).  Plywood flooring is not an acceptable floor surface.

15.   Mold– any mold or mold like substances should be remediated in a professional, workmanlike manner.  Merely painting over the affected area is not sufficient.

16.  The Attic ‐ Appraisers must complete a “head and shoulders” inspection of any attics and crawl spaces.  Be sure to provide the appraiser clear access to those areas by removing any personal property or debris and providing a step ladder or other means to access if one is not readily available.

17. Crawl Spaces –  Crawl Spaces must have a minimum height of 18‐inches in order to provide proper access

18.  Barns and Sheds – Another common FHA appraisal issue in rural areas are barns and sheds. FHA requires that every structure within the property lines must meet FHA minimum property standards. This means if there is a shed/barn with a defective paint surface or any other FHA issue observed it will need to be addressed. FHA standards don’t just apply to the main house.

19.  Graffiti – FHA requires that all graffiti on a house or structure on a given parcel must be removed.  It is considered to be a safety hazard.

20.  Pools – the FHA has no universal requirements for pools and pool safety; instead, the FHA will defer to local requirements and standards for pool safety.

21.  Wall and Floor Surfaces – the FHA requires that the appraiser be able to visually inspect all wall and floor surfaces.  If the appraiser is unable to inspect an area due to excessive personal property or debris, the area will have to be cleared so that the appraiser may inspect that area.

22.  Water – should be on and functional at the time of inspection.  The water heater should be able to produce hot water.

23.  Utilities – should be on and functional at the time of inspection

24.  Wiring – exposed wires must be secured or removed by a qualified electrical contractor

25.  Heaters & Central Air Units – should be on and functional at the time of inspection, the appraiser will test them.  If it is too cold, the appraiser will usually not test the Central Air unit, as not to cause damage to it.

26.  Windows ‐ that are painted shut must be made to operate freely.  NOTE:  Doing so may also require repainting the now defective paint areas.

27.  Carpets – Cleaning or removing carpets is required only when they are so badly soiled that they affect the livability and/or marketability of the property.

28.  Defects ‐ A property with defective conditions is unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated.  Defective conditions include:
a.  Defective construction
b.  Poor workmanship 
c.  Evidence of continuing settlement
d.  Excessive dampness
e.  Leakage
f.  Decay
g.  Termites
h.  Other readily observable conditions that impair the safety, sanitation or structural soundness of the dwelling

29.  Appliances ‐ If there is a space for an appliance in the kitchen, then it should be there and work properly.  FHA only requires drop‐in stoves if missing, while slide‐in stoves are not required (but the lender might require one).

30.  Well and Septic – be sure that they are visible for the appraiser to inspect.  If they have been covered in any way, uncover the access making it clearly visible for the appraiser.  

31.  Roof – if a roof surface appears to be at the end of its economic life, the appraiser may call for a Roof Certification to be completed by a qualified roofing contractor.  The certification states that the roof must “provide reasonable future utility, durability and economy of maintenance.”  “The roof should have a remaining physical life of at least two years. If the roof has less than two years remaining life, then the appraiser must call for re‐roofing or repair. The appraiser must clearly state whether the subject is to be repaired or re‐roofed” per the official FHA website. 

32.  Garage Doors– Garage Doors with openers must automatically reverse direction when meeting resistance.

33.  Plumbing ‐ If plumbing fixtures, pipes under the sink and in the basement are leaking or corroded, have them repaired or replaced by a qualified plumbing contractor.  Doing so proactively will make the appraisal inspection go more smoothly.  Also, if there is any damage under sink/counters as a result of a leaking pipe, have the area repaired or replaced.

34.  Fuel Tanks – Underground Storage Tanks such as oil and gasoline tanks should be identified for the appraiser to visibly inspect the area in which they are located and their fill‐pipes.

35.  Drainage ‐ The site must be graded to provide positive drainage away from the perimeter walls of the dwelling and to prevent standing water on the site.  Signs of inadequate draining include standing water proximate to the structure and no mitigation measures such as gutters or downspouts.

36.  Water Supply & Sewage Systems ‐ Each living unit must contain the following:
a.  Domestic hot water
b.  A continuing & sufficient supply of potable
c.  Water under adequate pressure & of appropriate quality for all household uses
d.  Sanitary facilities and a safe method of sewage disposal

37.  Public Utilities – Connection to Public Water/Sewer System – if the potential for connection to a public or community water/sewer system exists the connection must be made, if connection costs to the public or community system are reasonable (3% or less of the estimated value of the property.  If connection costs exceed 3%, the existing on‐site systems will be acceptable provided they are functioning properly and meet the requirements of the local health department.

38.  Wells ‐ must be a minimum of 50 feet from a septic tank, 100 feet from the septic tank’s drain field and a minimum of 10 feet from any property line.

39.  Hazards ‐ The property must be free of all known hazards and adverse conditions that:
a.  May affect the health and safety of the occupants
b.  May affect the structural soundness of the improvements
c.  May impair the customary use and enjoyment of the property.
These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities (such as meth labs), potential damage from soil or other differential ground movements, ground water, inadequate surface drainage, flood, erosion, excessive noise and other hazards on or off site.

40.  Wood Structure: Termites can cause serious problems in the wood structural components of a house and may go undetected for a long period of time.  FHA requires maximum assurances that a home is free of any infestation.  A pest inspection is always required for: a.  Any structure that is ground level b.  Any structure where the wood touches ground.

 Information provided by Mike Coyle, certified appraiser with The Coyle Group, LLC



Due to lead paint health concern’s, a home cannot have any evidence of peeling or chipped paint if lead is present.

Commonly Found In: Homes Built prior to 1978

How To Fix It:Repainting or removal of all chipped and flaking paint is required


All outlets, plumbing, lights, appliances, cooling, and heating systems must be operable and up to code at the time of inspection

Commonly Found In:Vacant properties, Short sales, Pre-Foreclosures, Bank owned properties

Resolution: Anything requiring repair must be repaired or replaced to bring the house up to local building and HUD Code.


The U.S. Department of Housing and Urban Development (HUD) require that barred bedroom windows without exterior access must have a security release hatch.

Commonly Found In: Garden units and Street level units in Urban Area’s

Resolution:Windows without the security release hatch must be modified or new windows installed


All steps and Stairway’s above 3 step’s must have handrails

Commonly Found In: Properties with more than one floor or a elevated/lowered main entrance

Resolution: Handrails must be installed near steps and stairway’s that do not have them

Well, Water Supply and Septic System

The Well or septic tank and Leach lines must be properly equipped, Identifiable, up to code and an acceptable distance from the property lines and any sources of pollution

Commonly Found In: Rural properties, Older Properties

Resolution:These system’s must be updated, replaced or money held in Escrow if they fail a water test or distance test.

This is another website that goes even more in depth with appraisal issues and fixes.

FHA appraisal issue tips

If a lender ever turns you down because of these or other problems request a free consultation and we can do our best to save the day.  While your here check out some other great articles.

FHA Mortgage- Frequently Asked Questions
The Tax Benefits of owning a home

Request Our FHA Property Guidebook has tried to provide accurate and timely information; however, the content of this site and Home Loan Programs offered may not be accurate, complete or current and may include technical inaccuracies or typographical errors. From time to time changes may be made to the content of this site without notice. may change the products, services, and any other information described on this site at any time. The information published on this site is provided as a convenience to visitors and is for informational purposes only. The Plattsburgh Mortgage Center is an independent, advertising-supported publisher and comparison service only. does not lend money or approve mortgage applications and does not include all companies or all available products.  You should verify all information before relying on it and decisions based on information contained in our site are your sole responsibility. Any contact information provided is for accommodation requests only. 

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