What requirements are on an FHA appraisal checklist?

FHA appraisals measure the property against minimum property standards covering safety, security, and soundness. The FHA roster appraiser, who must be state certified and listed on the federal Appraiser Registry, reviews the interior and exterior, including the condition of major systems, the roof, the foundation, and site drainage. Everything in the house must work as designed, and health and safety issues must be cured, but cosmetic defects alone do not fail an FHA appraisal.

An FHA appraisal requires a complete visual inspection of the subject property, interior and exterior, and completion of the Valuation Conditions (VC) form. The appraiser photographs the sides, front, and rear of the property, the street frontage, and each comparable sale, and provides a local street map. For homes built before 1978, the appraiser notes the condition and location of all defective paint. The valuation is prepared as-repaired, subject to conditions on the VC form, and required repairs are limited to those that preserve marketability and protect occupant health and safety.

An FHA appraisal verifies a home's market value and confirms it meets the U.S. Department of Housing and Urban Development (HUD) minimum property requirements for safety, soundness, and security. The checklist includes working heating, electrical, and plumbing systems; a roof expected to last at least 2 more years; safe road access; accessible gas, electricity, potable water, and sewage; and an undamaged foundation with adequate drainage. Common repair triggers include peeling paint, broken windows and doors, drainage problems, infestation, and damaged major systems.

An FHA appraisal verifies three things in addition to market value: safety, soundness, and security, under HUD's Minimum Property Standards. The appraiser checks for exposed wiring, missing handrails, unsafe heating, roof leaks, plumbing leaks and mold, non-working utilities, pest infestation, and peeling paint in homes built before 1978. The roof must have at least two years of remaining economic life, and drainage must slope away from the foundation. Required repairs must be completed before the loan can close, and the appraiser re-inspects afterward.

An FHA appraisal checks that a home meets HUD's minimum property standards for safety, soundness, and security. Common checklist items include a structurally sound foundation, water drainage away from the foundation, no active termite infestation, no peeling paint (a lead-based paint hazard), working utilities and heating, and a roof with at least two years of remaining life. Repairs flagged in the appraisal must be completed before the FHA loan can close.

An FHA appraisal requires a complete interior and exterior visual inspection plus the Valuation Conditions (VC) form, with photographs of the front, rear, and sides of the home and the street frontage. Checklist items include positive drainage, sound mechanical and heating systems, roof condition, at least 18-inch crawl space access, and defective paint in homes built before 1978. A domestic well must sit at least 50 feet from the septic tank and 100 feet from the drain field. Required repairs are limited to those needed to protect occupant health and safety and marketability.

An FHA appraisal must comply with HUD Handbook 4000.1. New York's Department of State identifies tasks the handbook requires: operating conveyed appliances, checking electrical receptacles, and analyzing and reporting repairs needed to meet HUD's minimum property requirements and standards. The Department has determined that licensed and certified appraisers performing these tasks do not violate New York's home-inspector licensure law.