What does an FHA appraisal look for?

An FHA appraisal checks that the home is safe, secure, and structurally sound. The appraiser verifies that major systems work as designed: utilities on, heating functional, adequate water pressure, working outlets, and properly drained grading around the foundation. The appraiser also reviews the roof for remaining useful life, checks attics and crawlspaces for damage, and looks for peeling paint on pre-1978 homes because of lead-based paint rules.

An FHA appraisal looks for conditions affecting the home's safety and marketability. The appraiser makes a complete visual inspection of the interior and exterior, completes the Valuation Conditions (VC) form, and photographs the front, sides, rear, street frontage, and comparable sales. The review covers hazards, drainage, water supply and sewage, wood-destroying insects, foundations, roofs, and mechanical systems, including heating that maintains at least 50 degrees F in plumbing areas. For homes built before 1978, the appraiser notes any chipping, flaking, or peeling paint.

An FHA appraisal determines the home's market value and checks whether it meets the U.S. Department of Housing and Urban Development's minimum property requirements for safety, soundness, and security. The appraiser looks for functioning heating, electrical, and plumbing systems, a roof expected to last at least two more years, safe road access, accessible utilities and potable water, and an undamaged foundation with adequate drainage. Common repair triggers include peeling paint, broken windows or doors, drainage problems, infestation, and damaged major systems.

An FHA appraisal establishes market value and verifies that the home meets the Department of Housing and Urban Development's (HUD) Minimum Property Standards for safety, soundness, and security. The appraiser looks for safety hazards such as exposed wiring and missing handrails, structural soundness, working utilities, roof condition (at least two years of remaining economic life), chipping or peeling lead-based paint in pre-1978 homes, drainage sloping away from the foundation, and pest infestation. Only state certified appraisers on the FHA Appraiser Roster may perform these appraisals.

An FHA appraisal checks the home against three minimum property standards from the U.S. Department of Housing and Urban Development (HUD): safety, soundness, and security. Common checklist items include no environmental hazards, water drainage away from the foundation, a structurally sound foundation, no active termite infestation, no peeling paint (a lead-based paint hazard), functional utilities and heating, and a roof with at least two years of remaining life.

The FHA appraiser makes a complete visual inspection of the property, interior and exterior, and completes the Valuation Conditions form. The report includes photographs of the sides, front, and rear of the property, the street frontage, and one photograph of each comparable sale. The appraiser analyzes the site for topography, soil suitability, and easements or encroachments, and verifies general acceptability criteria such as drainage, roof condition, mechanical and electrical systems, and safety items like handrails and broken windows.

Under HUD Handbook 4000.1, an FHA appraisal includes operating conveyed appliances, checking electrical receptacles, and analyzing and reporting repairs needed to meet the minimum property requirements and standards. The New York Department of State has determined that licensed and certified appraisers performing these HUD-required tasks do not violate the state's home-inspector licensure law.

An FHA appraisal establishes market value and checks the home against HUD's minimum property requirements for safety, soundness, and security. The appraiser inspects the foundation, roof, siding, chimneys, and drywall, plus utilities and systems such as water, electrical, plumbing, HVAC, and sewage. The roof must be functional for at least two more years, the home needs safe road access and an undamaged, properly graded foundation with adequate drainage, and hazards such as unremediated lead paint or pests can trigger required repairs.