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The Minimum Property Standards Required for an FHA Loan

FHA Loans have become one of the most reputable mortgage options on the market because they offer several benefits to borrowers. While qualification for an FHA Loan tends to be flexible, it is important to remember that the condition of the property being purchased does factor into the loan approval process. The property the borrower wishes to buy has to fulfill certain minimum requirements in order to qualify.

The minimum property requirements for an FHA Loan are as follows:   

  • Safety: The home must be safe to live in and cannot pose any risk to the health of the occupants.
  • Electrical and Heating: The wiring inside of the house should not be frayed or exposed. Also, it is important to ensure that there is a functional heat source in all habitable rooms.
  • Roof: The roof should be in good condition. It has to keep leaks and moisture outside the home. Also, the roof is required to have a durability of at least two years or more. There must not be more than three layers of roofing.
  • Water Heaters: Water heaters should conform to the local building codes.
  • Sufficient Water Supply: There should be access to hot water, drinking water, bathroom facilities, and a sewage disposal system.
  • Ventilation: If the house consists of crawlspaces and attics, it is important to make sure that they are ventilated and free from moisture, standing water, and excessive heat.
  • Hazards and Adverse Conditions: The property should not be near anything that’s considered hazardous or adverse (e.g. proximity to hazardous waste sites, airport noises, high-voltage power lines, radio and TV transmission towers, etc.).
  • Sound Structure: The structure of the house should not have present or potential damage (e.g. termite damage, leakage, decay, dampness, defective construction, etc.).
  • Bathroom Requirements: It is essential for the property to be fully equipped with all essential components like a toilet, a functional sink, and a shower.
  • Appliances: The kitchen should be in working order with appliances, like a stove and refrigerator, which are intact and functional.
  • Room Count: The property should have ample space for living, cooking, sleeping, dining, and sanitary needs.

If you are interested in buying a home and it meets the FHA’s qualifications, you may be eligible for the FHA Loan. For more information, contact the loan office nearest to you