FHA Appraisal Requirements 2026: Complete Checklist & What Inspectors Look For

What Is an FHA Appraisal?

An FHA appraisal is performed by an FHA-approved appraiser who determines market value and whether the property meets HUD's minimum property standards (MPS) for safety, security, and structural soundness. The appraisal is required for all FHA purchase loans. Find FHA-approved lenders

FHA Minimum Property Standards Checklist

Here is what the appraiser will evaluate.

How to Prepare Your Home for an FHA Appraisal

If you're selling to an FHA buyer, preparing for the appraisal prevents costly delays. Get matched with FHA lenders

• Fix any active leaks (roof, plumbing, windows)
• Ensure all utilities are turned on and functional
• Install handrails on all stairs with 3+ steps
• Repair or replace broken windows
• Scrape and paint peeling paint on pre-1978 homes
• Ensure water heater is strapped with TPR valve
• Clear access to attic, crawl space, mechanical systems
• Fix exposed wiring or missing outlet covers

FHA Appraisal vs Home Inspection

They serve different purposes and are performed by different professionals. Check FHA loan requirements

What Happens If the Appraisal Comes in Low?

If the appraisal value is below the purchase price, the seller can reduce the price, the buyer can make up the difference, or both can negotiate. FHA loans are limited to the appraised value or purchase price, whichever is lower. Check your FHA eligibility