An FHA appraisal is completed by an FHA-roster appraiser who estimates market value and confirms the home meets HUD's Minimum Property Standards for safety, security, and soundness. Issues like an aging roof, peeling paint in a pre-1978 home, missing handrails, or non-working utilities generally must be repaired before closing, and an FHA appraisal is generally valid for 180 days.
How the FHA appraisal differs
Every mortgage appraisal estimates value. An FHA appraisal adds a condition review: the appraiser is also checking that the home meets HUD's Minimum Property Standards (MPS). It isn't a full home inspection — the appraiser won't test every outlet or climb into every crawlspace — but it's more than a drive-by look at comparable sales.
The lender orders the appraisal through a system that keeps you, the seller, and the agents from influencing the appraiser. The report is tied to the property and the FHA case number. You'll still want a separate home inspection; the appraisal protects the lender and FHA, not you.
The Minimum Property Standards checklist
| Area | What the appraiser generally looks for |
|---|---|
| Roof | Keeps moisture out and has reasonable remaining life; generally no more than three layers of shingles |
| Structure | No obvious foundation failure, sagging, or active water intrusion |
| Utilities | Electricity, heat, and water working; safe wiring with no exposed connections |
| Paint | In homes built before 1978, no chipping or peeling paint (possible lead hazard) |
| Safety | Handrails on stairs, safe access to the home, no hazards to occupants |
| Water and sewer | Safe water supply; working sewer or septic; well testing in some areas |
| Crawlspace and attic | Accessible, ventilated, and free of standing water or visible damage |
| Pests | No active wood-destroying insect damage; inspection required in some areas |
Want a straight answer for your situation? Skip the call center — Matthew will review your credit, budget, and FHA options himself.
Talk with MatthewWhat happens from order to report
- Case number and order. Once you're under contract, the lender requests an FHA case number and orders the appraisal from an FHA-roster appraiser.
- Site visit. The appraiser measures the home, photographs rooms and systems, and checks the attic, crawlspace, and exterior as accessible. Utilities should be on.
- Value and conditions. The report compares recent sales and lists any repairs needed to meet Minimum Property Standards.
- Repairs and final inspection. If repairs are required, they're completed and the appraiser or an inspector confirms the work before closing.
Sellers can make the visit smoother by clearing access to the attic and crawlspace, making sure every utility is on, and fixing obvious safety items in advance.
Common repair items
- Scraping and repainting chipped exterior or interior paint in older homes
- Installing handrails on steps with several risers
- Replacing broken windows or doors that don't lock
- Repairing roof leaks or replacing a roof near the end of its life
- Covering exposed wiring, missing outlet covers, or open junction boxes
- Fixing active leaks under sinks or around water heaters, and installing a missing water heater relief valve line
- Turning on utilities so the appraiser can confirm systems work
Cosmetic issues — worn carpet, dated finishes, minor scuffs — generally aren't required repairs. The focus is safety, security, and soundness.
Who pays for repairs, and repair escrows
Required repairs are generally completed and re-inspected before closing. Who pays is a negotiation. Sellers often handle them, since the house won't close with FHA otherwise; buyers can sometimes pay for repairs, though lenders limit how that's handled, and seller contributions can't be used to disguise extra concessions.
When a repair can't reasonably be completed before closing — exterior painting in bad weather is the classic example — FHA may allow a repair escrow: funds are held at closing and released once the work is finished within a set window. Lender policies on escrows vary.
How long an appraisal lasts — and transfers
An FHA appraisal is generally valid for 180 days from its effective date, and in some cases an update can extend it. Because the appraisal is tied to the FHA case number, it can generally move with the case if you change lenders before closing, subject to the new lender's review and acceptance.
If a sale falls through, a later FHA buyer of the same home may see the prior appraisal in the system, including any required repairs, for the rest of its validity period. Details depend on the circumstances, so treat this as general guidance.
When a home needs more than a few fixes
If the home you love needs a new roof, major systems, or substantial updating, a standard FHA loan may not be the right tool. The FHA 203(k) renovation loan combines the purchase and repair costs into one FHA-insured mortgage. For a deep dive, see FHA203kInfo.com, and the special programs overview on this site. HUD updates its handbook regularly and lenders can add their own overlays, so Matthew will confirm the current guidelines for your file.
Frequently asked questions
Is an FHA appraisal stricter than a conventional one?
It includes a condition review against HUD's Minimum Property Standards, so safety and soundness issues that a conventional appraisal might only note often must be repaired for FHA.
Do I still need a home inspection?
It's strongly recommended. The appraisal protects the lender and FHA; a home inspection is for you and looks much deeper.
What if the appraisal comes in below the price?
You can renegotiate with the seller, bring more cash to cover the difference, request a reconsideration of value with better comparables, or walk away if your contract allows.
Can I buy an as-is home with FHA?
Only if it meets Minimum Property Standards. Homes with significant problems may fit a 203(k) renovation loan instead.
Does an FHA appraisal check for termites?
Not by default. A wood-destroying insect inspection is required when the appraiser sees evidence of damage or when local practice or state rules call for one.
Who pays for the FHA appraisal?
The buyer typically pays the appraisal fee, though it can be negotiated as part of seller-paid closing costs.
Ask Matthew about your FHA home loan
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
Prefer to start now? Start your pre-approval · Schedule a call · (512) 952-1125
Your information goes to Matthew only — it isn't sold to lead lists. Please don't include Social Security or account numbers.