What the FHA Appraiser is looking for

The goal of all prospective properties is to meet or exceed the FHA Minimum Requirements to be eligible to qualify for the FHA residential mortgage.  It is the job of the appraiser to inspect the subject property for any possible defective conditions.  Defective conditions are deemed unacceptable and are not eligible until the defects or conditions have been the remedied and the probability of further damage is eliminated. 

Defective conditions include poor workmanship, defective construction, and evidence of continued foundation settlement, excessive dampness, leakage, rot, decay or termites and any other readily observable condition that impairs the safety, sanitation or structural soundness of the dwelling.

Major components of the dwelling that are inspected include roof, heating and air, siding, structure, electrical, plumbing and foundation.

The roof structure should be sound with no sagging or irregularities. There should be no missing shingles and no evidence of leaking.  Attic spaces must have proper ventilation.

The heating and cooling unit should operate correctly and have no loud sounds or unusual doers.  Lights should turn on and off normally.  There should be no electrical wiring exposed at any time.  All plumbing fixtures must operate normally with no observable signs of leakage.  Any “operable element” that has reached the end of its useful life within two years should be replaced.  

There should be no holes or damage to the siding, structure or interior walls.  There should be no wood frame or siding touching the ground.  There should be no evidence of termites.  Homes built before 1978 should have all defective paint scraped and repainted.  There should be no broken windows, doors and steps, steps without handrails, and blocked doorways.

The foundation should not have significant cracking or any pooling of water near the foundation.   Proper water drainage away from the foundation is essential.  Homes with crawl spaces must meet a minimum requirement of 18” and should be free of debris, dampness and mold. 

The final required repairs are all repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupant.  Repairs costs are estimated and the work must be performed before the loan can close.

There are other site and external requirements exist that can disqualify a property, but in most cases if the home is located a typical residential area, than the eligibility lies within the subject dwelling which in most cases can be repaired to meet or exceed FHA Minimum Requirements.