FHA home loans explained for first-time buyers
Chapter 3: the house has to qualify too
The friendly answer
An FHA appraiser checks that the home is safe, secure and structurally sound, in addition to estimating its value. Peeling paint in older homes, missing handrails, broken windows, roof problems and non-working utilities are common repair items. Repairs usually must be done before closing, so ask early how the seller will handle them.
Last reviewed against the primary sources listed below.
What the appraiser looks at
- Safety: hazards such as exposed wiring or unsafe stairs.
- Security: working locks, doors and windows.
- Soundness: roof, foundation, and working heating, water and electricity.
Condos
An FHA loan on a condo usually requires the project or the unit to meet HUD's condo approval rules. Ask the lender to check before you make an offer.
Where the rules live
Property standards are in HUD's Handbook 4000.1. A home inspection is separate and still worth getting.
First-time buyers often ask
What makes a house qualify for FHA?
It must be your main residence and meet HUD's minimum property standards for safety, security and soundness, as checked by an FHA appraiser.
Does an FHA appraisal replace a home inspection?
No. The appraisal checks value and minimum standards for the lender. An inspection is a deeper review for you.