Key Takeaways:
- An FHA appraisal checklist helps you spot safety and structural issues like peeling paint or missing handrails before you buy. This process ensures the home is a safe investment and meets the minimum standards required for government-backed loans.
- Your appraisal report is valid for 180 days, which gives you a full six months to close your loan. This longer timeline is helpful if the seller needs to make repairs or if there are delays in the mortgage process.
- Requirements can vary by state, so California homes must have strapped water heaters while Michigan homes often need working sump pumps. Being aware of these local rules helps you avoid surprises and get your keys faster.
An FHA appraisal checklist is a critical step for any buyer in California or Michigan looking to secure a government-backed loan. In 2026, an FHA appraisal remains a HUD-required valuation to determine the home’s market value and a high-level review of safety and property standards.
It is important to remember that while this review is rigorous, it is not a substitute for a full, private home inspection. At ID Mortgage Broker, we use these standards to map clear paths to homeownership for our clients. Why does this matter so much in 2026?
Under current HUD policy, an FHA appraisal is valid for 180 days, and the old optional 30-day extension is no longer necessary. However, delays or required repairs can still impact your closing date and rate lock.
In this guide, we will provide an interior and exterior checklist, identify common red flags, highlight California and Michigan nuances, and answer your most pressing FAQs.
Quick Links:
- FHA Appraisal Requirements in Plain Language
- What the Appraiser Looks For Inside
- Exterior FHA Inspection Requirements
- Common FHA Appraisal Red Flags
- Appraisal Standards for California and Michigan
- FHA Appraisal vs. Home Inspection
- Solving FHA Loan Issues
- Closing Your Loan With ID Mortgage Broker
- Your Solution-Oriented Partner for FHA Loans
- FAQs
FHA Appraisal Requirements
The appraisal process often feels like a hurdle, but we are here to simplify the FHA appraisal requirements so you can approach your purchase with confidence. First, it is important to know who performs this task.
An FHA appraisal must be conducted by a HUD-approved appraiser. This professional is ordered by your lender, and the process is a non-negotiable requirement for FHA financing.
The appraiser’s primary job is to ensure the property meets HUD 4000.1 appraisal requirements, which focus on more than just the price tag. They are looking to ensure the home is a safe investment for both you and the government.
By using an FHA appraiser checklist, the professional confirms that the property is habitable and structurally sound. Because of the flexibility in down payments, FHA remains a top choice for first-time home buyers in California and Michigan who want to preserve their savings while moving into a safe home.
The “Three S’s” of FHA Standards
To understand the FHA mindset, we use a simple mental model called the “Three S’s”:
- Safety: The property must protect the health and safety of the occupants (e.g., no exposed wiring).
- Security: The property must serve as adequate collateral for the loan, protecting the asset itself.
- Soundness: The property must have structural integrity with no major defects that compromise its long-term viability.
Pro Tip:
- Think like an appraiser during your first tour. If you spot a major crack in the foundation or a missing heater, ask the seller about it right away. Addressing these “Three S” issues early can save you weeks of waiting later in the process.
How the FHA Appraisal Process Works
The journey from offer to keys follows a specific path:
- Lender Orders Appraisal: Once your contract is signed, we order the appraisal through a verified third party.
- On-site Review: The appraiser visits the home to take photos, measurements, and notes.
- Report Issued: The appraiser submits a report detailing the value and any “conditions” (repairs) needed.
- Repairs (If Needed): If the home fails a safety standard, the seller or buyer must address the issue.
- Re-inspection: The appraiser returns to verify the fixes.
- Cleared to Close: Once the property meets all HUD Single Family Handbook 4000.1 standards, the appraisal is finalized.
What the Appraiser Looks For Inside
While many buyers think of an appraisal as a quick walk-through, the FHA checklist for appraisers involves a detailed look at the home’s interior systems. The appraiser isn’t just looking at the floor plan; they are checking that the home functions as it should.
It is worth noting that while this checklist ensures the home meets FHA home inspection requirements, there is a difference between assessed and appraised value that will be reflected in your final report; the appraisal determines what the home is worth in the current market based on these interior conditions.
Sometimes buyers call this an FHA home inspection checklist, but remember, the appraiser is looking for “Minimum Property Requirements,” not every minor cosmetic flaw.
Utilities and Mechanical Systems
For an FHA loan to proceed, all utilities (water, electricity, and gas) must be turned on and fully functional at the time of the appraisal. We always advise our clients to ensure the seller has these active. The appraiser will test the HVAC system to ensure it can maintain a healthy temperature and look for safety hazards like exposed wiring or non-working electrical panels.
Pro Tip:
- Always confirm with your real estate agent that the gas, water, and electricity are fully turned on at least 24 hours before the appraisal. If the appraiser shows up and can’t test the stove or the heater, they will have to schedule a second visit, which usually means an extra fee for you.
Kitchen Basics (Safety + Function)
The kitchen must be functional. This means built-in appliances must work as intended. A common callout we see involves GFCI (Ground Fault Circuit Interrupter) outlets. If an outlet is near a water source and isn’t GFCI-protected, the appraiser may flag it as a safety condition.
Bedrooms and Egress
For a room to be considered a legal bedroom under FHA guidelines, it must have a secondary exit for fire safety. Usually, this is an egress window. If a “bedroom” only has a door leading into the hallway and no window to the outside, the appraiser likely won’t count it as a bedroom, and it may trigger a safety flag.
Basements and Crawlspaces
The appraiser is required to view the crawlspace and basement. They are looking for dampness, standing water, or indicators of mold. They also watch for structural “heaving” in the concrete slab. Because moisture intrusion is a common condition, we recommend checking these areas early in your home-buying journey.
Exterior FHA Inspection Requirements
The “envelope” of the home is just as important as the interior. The FHA inspection requirements for the exterior focus on protecting the structure from the elements and ensuring long-term durability. If an appraiser finds issues outside, it may require a follow-up visit, which can increase your overall home appraisal costs. Following the FHA appraisal guidelines helps prevent these extra fees.
Roof Condition
Under an FHA loan appraisal, the roof is a high-priority item. FHA guidance generally requires the roof to have at least two years of remaining life. If the appraiser sees curling shingles, holes, or significant deterioration, they will likely require a roof certification or a full replacement before the loan can close.
Foundation and Structure
The appraiser will walk the perimeter to look for significant cracks, signs of settlement, or water intrusion. While minor settling is common in older California and Michigan homes, horizontal cracks or major gaps will trigger a structural engineer’s review.
Lead-Based Paint (Homes Built Before 1978)
This is one of the most common FHA “hit list” items. If a home was built before 1978, any peeling or chipping paint is considered a lead hazard. This doesn’t just apply to the main house; peeling paint on a backyard shed or a perimeter fence can also stall your closing.
Pro Tip:
- Don’t forget the “little” buildings. FHA paint rules apply to everything on the lot, including old sheds or perimeter fences. If there is peeling paint on a backyard tool shed, scrape and paint it before the appraiser arrives so it doesn’t stall your loan.
Drainage and Grading
The lot must be graded so that water flows away from the structure. If the appraiser notices that the ground slopes toward the foundation or that there is standing water against the house, they will require the grading to be corrected to protect the “Soundness” of the asset.
Common FHA Appraisal Red Flags
We want to help you avoid “deal-killers” before the appraiser even sets foot on the property. Falling into first-time homebuyer mistakes often includes not walking the property with a critical eye. Use these FHA appraisal red flags as your guide.
Safety Hazards (fast fail items)
Some items are immediate “fails” that must be fixed. One of the most common is missing handrails. Usually, any staircase with three or more risers requires a secure handrail. Other fast fails include exposed electrical wiring and a non-functional primary heating system.
Pro Tip:
- Missing handrails are one of the most common reasons for a “failed” appraisal. If the home has a porch or indoor stairs with three or more steps and no rail, you can often install a basic, sturdy handrail for less than $50. It’s a cheap fix that prevents a major closing delay.
Environmental and Pest Concerns
While FHA doesn’t always require a separate pest inspection, the appraiser will look for “active” termite damage or wood rot. Additionally, standing water in crawlspaces or evidence of hazardous materials on the site will be flagged. If the home is near a high-pressure gas line or a high-voltage tower, the appraiser must ensure it meets HUD distance requirements.
Operational Livability
To meet what won’t pass FHA inspection, every habitable room must have a permanent heat source capable of maintaining safe temperatures. Space heaters or “plug-in” units do not count. The home must also have a continuous supply of safe, potable water and a functional sewage disposal system.
Appraisal Standards for California and Michigan
As a broker licensed in both California and Michigan, we understand that geography changes the checklist. While FHA loan inspection requirements are federal, local building codes and climates create specific “hot spots” for appraisers. Following FHA appraisal guidelines means knowing these nuances.
California Nuances:
- Water Heater Strapping: Due to seismic activity, California requires water heaters to be double-strapped to the wall studs.
- Smoke and CO Detectors: California has strict mandates for smoke detectors in every bedroom and carbon monoxide detectors on every level.
Pro Tip:
- In California, double-check that the water heater has two straps—one on the top third and one on the bottom third. Even if it feels secure with one, the appraiser will require a second strap to meet seismic safety codes before they sign off on the house.
Michigan Nuances:
- Winter Accessibility: Appraisers must be able to access all areas. If a Michigan winter has buried the crawlspace or roof in five feet of snow, the appraisal may be delayed until the appraiser can safely view these components.
- Sump Pump Functionality: In Michigan’s flood-prone or high-water-table areas, a functional sump pump is often a focal point for soundness.
Whether you are seeking an FHA loan in California or a home in the Great Lakes State, having a broker who understands these regional differences prevents last-minute surprises.
FHA Appraisal vs. Home Inspection
It is vital to distinguish between these two steps. An FHA loan appraisal is required by the lender to protect their investment and ensure the HUD Minimum Property Requirements are met. A home inspection is optional (though highly recommended) and is a much deeper dive into the home’s maintenance and systems.
For example, an appraiser likely won’t care if the dishwasher is loud or if the kitchen cabinets are dated. However, they will call out an unstrapped water heater because it violates safety standards. Use your FHA appraisal checklist for the “must-haves,” but use a home inspector for your “peace of mind.”
Solving FHA Loan Issues
If your appraisal comes back with “conditions,” don’t panic. These FHA loan appraisal issues are solvable. We specialize in helping buyers navigate these hurdles.
Re-Inspection (Once Repairs are Complete)
Once the identified repairs are made, we will schedule an fha appraisal re-inspection. The appraiser returns (usually for a smaller fee) to take photos of the fixes and sign off on the property.
Negotiation Strategy (Use Conditions as Leverage)
You can often use appraisal conditions as leverage. If the appraiser requires a new roof, you can negotiate with the seller to pay for the repair or provide a credit. This is often tied into the discussion of who pays for closing costs, as repair credits can be structured to help your bottom line.
Broker “Plan B” Options
If a home needs more work than a seller is willing to do, we can look at an FHA 203(k) renovation loan. This allows you to bundle the cost of repairs into your mortgage, turning a “failed” appraisal into a customized home project.
Closing Your Loan With ID Mortgage Broker
Once your appraisal is “Cleared to Close,” you are in the home stretch of the buying process. As your broker, we manage the appraiser timeline meticulously to ensure your rate lock doesn’t expire while waiting for a re-inspection.
The appraisal report is one of the most significant pieces of paperwork required for a mortgage, and we ensure it is handled with care. We use the FHA appraisal checklist as a roadmap to get you to the finish line on time.
Knowledge is control in the real estate market. By using this checklist, you reduce surprises and put yourself in a position of strength. At ID Mortgage Broker, we believe every property challenge has a solution.
If you are ready to see how an FHA loan can work for your specific property scenario in California or Michigan, contact us today. We are ready to help you map your path to homeownership.
FAQs
How long is an FHA appraisal valid?
An FHA appraisal is valid for 180 days. Per HUD updates (specifically ML 2022-11), the old 120-day limit with an optional 30-day extension has been simplified to a flat six-month window, providing more flexibility for modern closing timelines.
What are the most common reasons a home fails an FHA inspection?
The most frequent culprits on the FHA appraiser checklist are peeling paint (pre-1978 homes), missing handrails, non-functional heating systems, and utilities that are not turned on for the appraiser to test.
Can I use an FHA loan for a house with an ADU in California?
Yes. FHA recently updated its policy regarding Accessory Dwelling Units (ADUs) under ML 2023-17. This allows for more flexibility in including ADU rental income for qualification and ensures appraisers have clear guidance on how to value these units.
Does the FHA appraisal checklist cover detached sheds or garages?
Yes. The FHA checklist for appraisers applies to all structures on the property. If a detached garage has peeling lead-based paint or is structurally collapsing, it must be repaired or removed to meet fha minimum property standards checklist requirements.
Who is responsible for paying for the FHA appraisal re-inspection?
Typically, the buyer pays the re-inspection fee (usually 150–150–150–250), but this is a common point of negotiation. We often see buyers ask the seller to cover this cost as part of the repair agreement.
