FHA minimum property requirements checklist

What the standard means

The Handbook defines Minimum Property Requirements as general requirements that all homes insured by FHA be safe, sound and secure. The companion term, Minimum Property Standards, covers the regulatory requirements for new construction. The appraiser is described as the lender's on-site representative and provides a preliminary check; where the appraiser cannot decide whether the property complies, the lender may obtain an inspection from a qualified entity. The Handbook asks the lender to use professional judgment on when inspections or repairs are necessary. If the loan is a 203(k), the property must meet these criteria after the repairs are complete. The checklist above lists the conditions a buyer can reasonably spot on a walk-through; it does not replace an appraisal.

Site and access

Several items concern the lot. Improvements may not encroach onto a neighbor's property, a right-of-way, a utility easement or a building restriction line, and neighboring improvements may not encroach on the subject; fence encroachments are acceptable if they do not affect marketability. An overhead electric transmission line may not pass directly over the dwelling, other structures or improvements including pools, and if one does, the line must be relocated for the home to be eligible. The residential service drop line may not pass over a pool, spa or water feature. The property needs safe pedestrian access and adequate vehicular access from a street that is public or protected by permanent recorded easements; private streets and shared driveways need easements, ownership interest or HOA ownership but not a joint maintenance agreement. Abandoned gas or oil wells require a letter from the local or state authority that the well was safely and permanently abandoned.

The living unit

Every living unit must have a continuing and sufficient supply of safe, potable water under adequate pressure; sanitary facilities and a safe method of sewage disposal, including at least one bathroom with a toilet, lavatory and tub or shower; adequate space, heating, domestic hot water and electricity; and a kitchen area with at least a sink with running potable water and a stove utility hookup. Appliances that remain and contribute to market value must be operational. The Handbook adds that FHA has no minimum size for one- to four-family dwellings and condominium units. Water and sewage details are on the well and septic page.

Structure, safety and pests

The lender must confirm the structure and foundation will be serviceable for the life of the mortgage and the foundation can bear normal loads. The property must be free of known environmental and safety hazards that affect occupants' health, the collateral's value or structural soundness. A property found contaminated by methamphetamine is ineligible until certified safe for habitation. The lender must confirm the property is free of lead paint hazards; see the peeling paint page. For existing properties the lender must confirm the property is free of wood-destroying insects; if the appraisal is subject to a pest inspection, the lender must get the inspection and evidence of any treatment. Swimming pools must comply with local ordinances.

Defective conditions and repairs

When defective conditions exist and correction is not feasible, the lender must reject the property. The lender may approve it only after confirming that the defects the appraiser reported have been corrected. The Handbook defines defective conditions as defective construction, evidence of continuing settlement, excessive dampness, leakage, decay, termites, environmental hazards or other conditions affecting occupants' health and safety, collateral security or structural soundness. The appraiser reports repairs needed, an estimated cost to cure and photographs. Inspections are tied to specific signs such as standing water against the foundation, faulty mechanical systems, possible structural failure, possible pest infestation or leaking roofs, and appraisers may not recommend inspections only to limit their own liability.

Using the checklist

Tick whatever you see; the count and the list of flagged items appear on the right. A flagged item is not a verdict. It is a question to raise with the appraiser, the lender and your agent before you are committed, since some are fixable and some end the loan. Repairs can sometimes be financed, as the 203(k) page explains. Dates and timing for appraisals are on the appraisal validity page.

Sources

• HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Update 18 PDF: Underwriting the Property, Property Acceptability Criteria (11/10/2026)(06/27/2025), Handbook pp. 184-197; Appraiser requirements, pp. 815-817. Read November 2, 2026.
• HUD, Single Family Housing Policy Handbook 4000.1 information page. Read November 2, 2026.

Text read: HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, the clean Update 18 PDF that HUD links from its Handbook 4000.1 information page (HUD lists it as the August 12, 2026 update). Section headings carry their own effective dates, given above for this page. A heading with two dates, such as (11/10/2026)(06/27/2025), shows a revised date written over the prior one. Confirm current dollar limits and premium rates with an FHA-approved lender. This page paraphrases the Handbook and does not replace it. Page numbers cited are the Handbook's own and may be approximate; use the section headings to locate the text.