When buying a home with an FHA loan, most buyers expect the standard steps: pre-approval, inspections, paperwork, closing. But there’s one step that often surprises first-time FHA borrowers — the FHA appraisal.

Unlike conventional loans, FHA financing comes with a specific set of requirements designed to ensure the home is safe, sound, and secure. In a recent conversation, Mike Love of Great Move Realty sat down with Ryan Coy of ProPrecise Property Inspections to break down exactly what appraisers look for and why FHA loans come with a more detailed set of guidelines.

This quick guide highlights the essentials so you can move forward with confidence.

What Makes an FHA Appraisal Different?

At first glance, an FHA appraisal might look similar to a conventional one — but the purpose isn’t just to determine value. FHA appraisers must also verify that the home meets HUD’s Minimum Property Standards, which are focused on health, safety, and livability.

That means the appraiser is looking at more than just recent comparable sales. They’re also evaluating:

• Structural soundness

• Safety issues (handrails, loose steps, tripping hazards)

• Electrical concerns (exposed wiring, missing covers)

• Roof condition and remaining lifespan

• Water intrusion or signs of active leaks

• Functional heating, plumbing, and utilities

• Peeling paint in homes built before 1978

• Proper egress in bedrooms

While this list isn’t exhaustive, it highlights the key areas that can delay — or derail — an FHA loan if the issues aren’t corrected.

Why These Guidelines Matter

FHA loans were created to make homeownership accessible with lower down payments and flexible credit requirements. In exchange, the FHA ensures the home meets certain standards to protect both the buyer and the lender.

Ryan notes in the video that these extra guidelines don’t mean the house must be perfect — but it must be safe. And that’s where many buyers feel the difference between an FHA and a conventional appraisal.

Mike adds that understanding these requirements upfront can prevent frustration later, especially if repairs are needed before the loan can move forward.

Common FHA Appraisal Red Flags

While every home is unique, some issues come up more frequently during FHA appraisals:

• Missing handrails

• Chipped or peeling paint

• Roof near the end of its lifespan

• Non-functioning mechanical systems

• Active water leaks or damp basements

• Broken windows

• Trip hazards or uneven surfaces

• Exposed wiring or outdated electrical panels

The good news? Most of these issues are fixable — and many repairs are inexpensive.

How Buyers and Sellers Can Prepare

For Buyers:

• Ask your agent if the home qualifies for FHA before writing an offer.

• Understand that some repairs may become part of negotiations.

• Don’t panic — FHA does not require a “perfect” house.

For Sellers:

• Consider addressing safety or obvious repair issues before listing.

• Understand that FHA loans are common and not necessarily more difficult.

• Partner with an agent who understands FHA guidelines (like our team at Great Move Realty).

The Bottom Line

FHA appraisals aren’t meant to complicate the process — they’re designed to ensure a home is safe and livable for the next buyer. By knowing what to expect, both buyers and sellers can navigate the FHA process with clarity and confidence.

If you’re planning to buy or sell a home in Northeast Ohio and want guidance tailored to your situation, our team is here to help.

Your home. Our priority.