FHA insured mortgage minimum property standards

FHA Minimum Property Standards

The Federal Housing Administration in an effort to promote homeownership and stable communities insures mortgages by private lenders.  An FHA mortgages comes with many advantages including a lower down payment, a lower interest rate and is easier to get qualified.   

An FHA mortgage does comes with stricter guidelines for the condition of the property.  The administration requires that each home meet more stringent safety and habitability requirements then most lenders would require.  This makes it more difficult to get a home approved for a mortgage, but means, the homeowner gets a better home.  

Here is a rundown of the basic safety and habitability standards that FHA appraisers look for in a home.

FHA Minimum Property Standards: Exterior

• A "Marketable", Complete Home

The loan can only be secured by a complete home that is marketable as a single piece of real estate.

• Public Access To The Home

The property must be accessible by public roads or other ways.  If there is no direct access from a public road there must be an easement associated with the property.

• Safe Access To The Home

The access to the property must be from a public or private street that has an all weather surface.  If it is privately owned street it must be maintain by some agreement with other homeowners or by a homeowners association.

• Absence Of Hazards

The home and property must be free of any safety or health hazards.  This could include radioactive material, mudflows and excessive pollution.  Homeowners can provide evidence that the hazards have been mitigated.

• Full Exterior Walls

FHA mortgage guidelines require that structures on a property, or at a property line, be separated from adjoining buildings by a full-height wall. If the full-height wall is an outermost exterior wall, the FHA requires that there be enough space between buildings in order to perform wall maintenance, as needed.

• Property Drainage

FHA-insured properties must be graded so that water drains away from building perimeter walls, and so that water does not pond on the property.

• Sound Construction

The FHA requires that its insured homes be free of defective construction, poor workmanship, evidence of continuing building settlement, excessive dampness, leakage, decay, termites or any other condition that impairs its safety, sanitation or structural soundness.

• Roofing

FHA-insured homes must have a roof which is water-tight and shows no evidence of missing tiles, shingles, or flashing; or signs of leakage.

FHA Minimum Property Standards: Interior

• Room Counts

An FHA-insured property must have adequate space for living, sleeping, cooking and dining. It must also have sanitary facilities including, but not limited to, bathrooms with showers and/or bath tubs.

• Sanitation

An FHA-insured property must have a continuing supply of safe drinking water, sanitary facilities, a safe method of sewage disposal, adequate heating, indoor hot water, and electricity for lights and equipment.

• Utilities

Water, gas, electric and sewer services for an FHA-insured properties must be independent for the property, with no dependence on another property. In a multi-unit building of 2-, 3-, or 4-units where utilities are shared among owners, each unit must maintain a separate shut-off switch for its utilities. Common services including laundry facilities, storage space or heating, are allowed.

• Attics And Crawl Spaces

The attics and crawl spaces of an FHA-insured home must have proper natural ventilation to reduce excess heat or moisture that can lead to structural decay or deterioration. Crawl spaces must be accessible and clear of debris.

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