FHA Loans

FHA loans are insured by the Federal Housing Administration (FHA). Programs are available for borrowers with limited savings for a down payment.

Program Highlights

  • Down payment as low as 3.5%
  • Flexible use of gifts and grants for down payment
  • Best for borrowers with limited assets, or for those with lower credit scores
  • 580 minimum credit score required. Credit scores below 600 require compensating factors
  • Eligible for 1-4 unit homes, must occupy one of the units
  • Non-occupant co-signer eligible
  • Primary residences only

FHA loan limits per county can be found HERE.

Common FHA Appraiser Required Repairs:

These could be called for by the appraiser or the underwriter.


All windows must open / close properly. Bedroom windows with security bars require a quick release mechanism for emergency egress.

Peeling Exterior Paint

All peeling exterior paint, even if it is on concrete steps/stoop – must be scraped and repainted including defective interior paint surfaces in homes constructed prior to 1978.

Crawl Space

The crawl space must have an interior or exterior access. The access area should be clear of debris. The crawlspace should be adequate for maintenance and repair.


Functionality test and confirmation that no unusual noises are heard and that no odors or smoke are emitted.


Visual inspection for areas of needed repair or leaks. Appraiser must note in the report if any portion of the roof could not be adequately observed. Based on the information reported by the appraiser, the underwriter will determine whether or not a roof inspection is required.


A representative number of light fixtures, switches, and receptacles inside the house, garage, and exterior walls must be tested and deficiencies noted.

Electrical Outlets

At least two per room required.


Appraiser to flush toilets and turn on a representative number of faucets to determine that the plumbing system is intact. Also to determine that it does not emit foul odors, and that both hot and cold water work.

Conditions That Require Further Inspection

Infestation, inoperative or inadequate plumbing/heating/CAC or electrical systems, structural failure in framing members, leaking or worn-out roofs, cracked masonry or foundation damage and drainage problems, unknown substance that could be mold/mildew.

Additional common repair that may be called for repair:

  • Missing handrails
  • Cracked or damaged exit doors that are otherwise operable
  • Cracked window glass
  • Defective paint surfaces in homes constructed post 1978
  • Minor plumbing leaks
  • Defective floor finish
  • Rotten or worn out counter tops
  • Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post 1978
  • Poor workmanship
  • Trip hazards
  • Crawl space with debris or trash
  • Lack of an all-weather driveway surface

Examples of property conditions that may represent a risk to the health and safety of the occupants, which FHA will continue to require automatic repair for existing properties include, but are not limited to:

  • Inadequate access/egress from bedrooms to exterior
  • Leaking or worn out roofs
  • Evidence of structural problems
  • Defective paint surfaces in homes pre-1978
  • Defective exterior paint surfaces in homes constructed post -1978
  • Mold/mildew

Curious if you qualify?