FHA Minimum Property Standards

Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #151088

With FHA mortgages continuing to take more of the market share, questions often arise regarding what are the potential repairs might be required when the buyer is obtaining an FHA mortgage.  In late 2005, HUD revised their minimum property standards requirements for FHA mortgages.  Prior to this change, even some of the most minor repairs might have required correction. 

FHA's minimum standards are much different today though.   Currently, HUD only requires the repair of conditions that exceed cosmetic and minor defects or normal wear and tear.  FHA Appraisers must still report all readily observable property defects.  The lender's FHA Underwriter must then use professional judgment to determine if any of those property conditions requires any repair prior to closing.

FHA now permits an "As Is" appraisal for existing properties where minor defects are found, provided that they do not affect the safety of the occupant or the security and soundless of the property.   Some examples of minor property conditions which no longer automatically require repair include:

  • Missing handrails
  • Cracked or damaged exit doors which are otherwise operable
  • Cracked window glass
  • Defective interior paint surfaces in homes constructed post 1978
  • Minor plumbing leaks, such as faucets
  • Defective floor finish or coverings
  • Rotten or worn out countertops
  • Damaged sheet rock, plaster, or ceilings in homes constructed post 1978
  • Trip hazards
  • Crawl space with trash and debris
  • Lack of all-weather driveway surface
  • Missing appliances (except for cook top stoves and wall ovens)

Property conditions which may require repair are those which may pose a risk to the health or safety of the occupant or the soundness of the property.  Any of these items may require repair prior to closing.  Some examples of items automatically requiring repair include:

  • Inadequate access/egress from each bedroom to the exterior of the home (a minimum of one window per room should open)
  • Leaking or worn out roofs
  • Evidence of structural problems
  • Defective interior/exterior paint surfaces in homes constructed prior to 1978
  • Defective exterior paint surfaces in home constructed post 1978
  • Missing/inoperable cook top or wall oven
  • Exposed electrical outlet covers
  • Broken glass
  • Garage door, if electric, must open/close properly

For the exterior of the home, one of the biggest areas of concern is peeling or flaking exterior paint or exposed wood.  There should also be no wood to earth contact.

FHA Appraisers are still required to test all plumbing, electrical, and heating/air systems.  For this, all systems must be turned on a prior to the arrival of the Appraiser.  The Appraiser is not allowed to turn on any breaker boxes, water shut off valves, temperature controllers, etc.  This means that hot/cold water must flow from all faucets, all toilets must flush, and the heating/air system must heat or cool (whichever is appropriate for the season).  This all must be properly functioning as soon as the Appraiser enters the property. 

Should everything not be functioning properly, a final inspection will be required and must be cleared by the Underwriter prior to closing.   The final inspection will be paid for by the buyer and the approximate cost is $150.  With the number of REO properties on the market today, many of them may not have all systems already on and functioning properly.  It's always a good idea to do a walk through and check everything prior to the Appraiser's visit.

Save your self time and money by ensuring everything is ready to go for the Appraisers visit.


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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!


Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  


Programs Include:


  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Renovation - FHA 203(k), Fannie Mae HomeStyle Renovation, & VA Renovation


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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.


  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  

    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more


All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.



Comments (7)

Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ

Great information on FHA!  Thank you so much for sharing, Rodney!

Dec 25, 2010 11:38 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

FHA requirements can be a mystery for many home buyers and home sellers.  But FHA is and will continue to play an important role in the real estate market so it is important to understand the program.

Dec 25, 2010 12:12 PM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Liz....You are very welcome.

Tni...You are correct that FHA is a mystery to many.

Dec 25, 2010 12:17 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Rodney, than you for posting the FHA standards, it is appericated!

Dec 25, 2010 08:16 PM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Dan....You are very welcome.

Dec 26, 2010 02:29 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Rodney, excellent blog post. I knew of some of the requirements, but this is a complehensive and easy to understand list, which I appreciate.

BTW, I came from the reblog by Tni

Dec 26, 2010 07:01 PM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Jon....I am glad you found it.  This is a topic that I continually get questioned about.

Dec 27, 2010 01:06 AM