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Use this checklist to meet FHA requirements

You may use a Federal Housing Administration (FHA) loan to buy a house. In this case, the property must be appraised and ok’d by an appraiser who’s approved by the U.S. Department of Housing and Urban Development (HUD).

The appraiser will determine the property’s current market value and ensure that it meets HUD’s minimum property standards. If the appraiser identifies any issues in the home, those issues must be fixed before the loan will be funded.


As spelled out in the FHA Handbook, the appraiser will:

  • Inspect inside and outside of the property.

  • Photograph the front, back and sides of the home and any improvements that have been made.
  • Photograph comparable sale transactions that support the appraisal amount.
  • Provide a street map showing the location of the property and the locations of the “comp” properties.
  • Photograph the lot grade if it is for proposed construction.
FHA Property Guidelines

The FHA Handbook states that HUD’s primary concern “is the health and safety of the home buyer who will actually live in the house. Thus, most of their appraisal/inspection checkpoints have to do with health and safety aspects of the property. Above all, the home must be habitable and comfortable, without any potential hazards to the occupant.”

The handbook says it is a “common misconception that FHA appraisals are unnecessarily strict, and that any inspection ‘hits’ will end your chances of getting a loan. This is incorrect. In fact, the health-and-safety aspects of the FHA appraisal have gotten a bit more relaxed over the years. Additionally, most discrepancies are fully correctable. If they are corrected before the final inspection (when the appraiser follows up on the hit list), the loan can still move forward.”

For more information about FHA guidelines and loans, call 888-273-3020.