What Are FHA Appraisal Standards?

Someone who is obtaining or refinancing a mortgage backed by the Federal Housing Administration (FHA) must first have the home pass an FHA appraisal. An appraisal is the determination of the property's market value by a professional appraiser, who checks over the property. FHA appraisals are intended to ensure the home is safe for occupancy and determine whether the property is worth the amount of the mortgage loan being requested.

Exterior

Roofs must have a remaining life of at least two years. The FHA allows for a maximum of three layers of roofing. A roof that has the maximum number of layers and needs repairs must be entirely redone. Siding and paint have to be in good condition. Porches have to be in good shape, and any attached stairs with damage can be deemed a safety hazard.

Interior

The FHA appraiser inspects any attics or basements in the home. The appraiser checks for signs of water damage and structural damage, and the state of any installed appliances, such as a hot water tank, in the basement. A sump pump, which keeps water out of a basement, is permissible as long as the pump is functioning at the time of the appraisal and wired according to FHA standards. Attics are inspected for structural integrity and signs of leaking water from the ceiling and windows. Crawl spaces, which allow access to vital home systems such as a furnace, have to be ventilated, dry and accessible. The FHA appraiser is required to enter the crawl space with at least his head and shoulders.

Systems

The FHA appraiser will examine electrical boxes for frayed or damaged wires. Any rooms the occupants can use in the home must have adequate heating. Some unconventional heating systems, such as space heaters, can be rejected, depending on state law and the condition of the equipment. Private sewer systems, such as septic systems, are accepted by the FHA as long as the local health authority has provided certification. Private wells for water are checked by the appraiser to ensure the distance between the well and any sewer system or pollutant is acceptable.

Environmental Hazards

Homes built before 1978 must be checked by the FHA appraiser for damaged paint surfaces due to the possibility that lead paint, a potential health hazard, was used. Insulation around water pipes is inspected by the appraiser for signs of crumbling asbestos, which could pose a serious health threat. Any consistently loud noises, noxious odors or other issues the property is subject to because of the surrounding areas must be considered by the appraiser if the problems interfere with the marketability of the property and overall health of potential occupants.