Before The Appraisal: FHA Home Inspection Checklist

An FHA appraisal is required for all home purchases and refinances using an FHA loan. Why? To ensure the property meets both market value and minimum safety standards set by the Federal Housing Administration (FHA).

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Unlike a traditional appraisal, which determines a home’s market value, an FHA appraisal also assesses whether the home meets HUD guidelines and ensures the property is safe, livable, and structurally sound for the borrower.

Reviewing an FHA Home Inspection Checklist before an appraisal can help homeowners identify and address issues early, reducing the risk of costly delays or loan denials:

  • Increase the Chance of Loan Approval – Addressing FHA issues beforehand helps ensure that the home qualifies for an FHA loan, making the process smoother.

  • Prevent Delays in the Sale or Refinance – If the appraiser identifies issues that don't meet FHA standards, repairs will be required before the loan can close. Checking these items early can save time.

  • Avoid Unexpected Repair Costs – Homeowners who proactively fix FHA-required issues can control costs rather than dealing with last-minute surprises.

  • Improve Marketability of the Home – Even if a seller isn’t targeting FHA buyers, addressing safety and habitability issues can make the home more attractive to a wider range of buyers.
 

Checklist of Common Items an FHA Appraiser Looks For

 

Structural Integrity & Foundation:

  • No major cracks or foundation issues
  • No signs of water damage or structural instability

Roof & Exterior:

  • Roof must have at least two years of life expectancy remaining
  • No missing or damaged shingles
  • No peeling paint (for homes built before 1978, lead-based paint must be addressed)
  • Proper drainage and gutters

Interior Condition:

  • No exposed wiring or electrical hazards
  • Functioning plumbing (no leaks, proper water pressure)
  • All rooms must be habitable (no missing flooring, holes in walls, etc.)

Heating & Cooling Systems:

  • A permanent heating system must be in place and working
  • Air conditioning (if installed) should function properly

Electrical & Safety Features:

  • No frayed or exposed electrical wires
  • GFCI outlets in bathrooms and kitchens
  • Smoke detectors installed and working

Health & Safety:

  • No signs of mold or moisture damage
  • No pest infestations
  • No hazardous materials (like asbestos or lead paint)

Access & Functionality:

  • The home must be accessible from a public road
  • Windows and doors should be functional and lock properly
 

What is the difference between an FHA appraisal and a conventional appraisal?

An FHA appraisal includes both a market valuation and a health & safety inspection based on HUD’s Minimum Property Standards. It ensures the home is safe, habitable, and structurally sound before loan approval. A conventional appraisal, on the other hand, only focuses on the market value and does not require safety inspections or repairs.

 

What happens if a home doesn’t pass an FHA appraisal?

If a home fails an FHA appraisal, the lender won’t approve the loan until required repairs are made. The seller may need to fix safety or structural issues (like peeling lead-based paint, a damaged roof, or faulty electrical systems) before the loan can proceed. If repairs aren’t made, the buyer may need to look for a different property or negotiate for the seller to cover the costs.

 

How long is an FHA appraisal valid?

An FHA appraisal is valid for 120 days (about four months). If the loan process takes longer than this, a new appraisal may be required. In some cases, extensions are granted if the loan is in process and the original value is still accurate.

By reviewing an FHA Home Inspection Checklist before an appraisal, homeowners can identify and fix potential issues, increasing the chances of passing the FHA appraisal without delays. Whether selling, refinancing, or buying with an FHA loan, being proactive about FHA standards can save time, money, and stress.

 

Need An FHA Appraisal In Phoenix AZ?

At Master Appraisal Services, we prioritize professionalism, confidentiality, and integrity in every appraisal we perform. Whether you need an appraisal for a divorce, estate, or any other purpose, you can trust us to handle your information with care and respect.

From single family homes, age restricted communities. condos, golf properties, exclusive estate or mobile homes - there's nothing we can't handle in the Phoenix area including Scottsdale, Chandler, Gilbert, Mesa, San Tan Valley and surrounding areas.

Give us a call to schedule your appraisal.

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