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Guide to FHA Loans
CONDITION REQUIREMENTSUnlike a normal appraisal where the focus is mainly on the value of a property, FHA loans require an FHA appraisal. In addition to determining value, an FHA appraiser is tasked with making sure that the property has a minimum condition. Common issues raised by FHA appraisals include:
   • Electrical outlets near water fixtures require Ground Fault Circuit Interrupter (GFCI) outlets. GFCI outlets have the, “Test” and, “Reset” buttons and are a safety device.
   • Built-in appliances or any appliances conveyed in the purchase agreement need to be operational.
   • Utilities (gas, water and electric) need to be operational.
   • Smoke and carbon monoxide detectors must be operational and within fifteen feet (15') of bedrooms.
   • All interior and exterior wood surfaces need to be free of chipping or peeling paint.
   • Heating or furnace and central air or cooling need to be operational.
   • Exterior grading must reveal positive drainage from the structure.
   • Windows need to be operational with no broken glass.
   • Roof life must be at least 2 years. Curling shingles and roof leaks may indicate the life of the roof to be less than 2 years.
   • Toilets, sinks and showers must be operational.
   • All water leaks must be repaired.
   • All garage doors must have an automatic safety
   reversal (ie electronic eye).
   • Home must be free of any mold.
   • The attic and crawl space need to be free of debris so the appraiser can have adequate clearance to access.
   • Home must be free of all trip hazards or safety concerns (ie. uneven exterior concrete, lack of handrails, in-ground pools must be filled with water and/or completely covered).