For a home to qualify for an FHA-insured mortgage, the property must meet both FHA eligibility requirements and the lender's underwriting standards. The FHA requirements are generally national standards and do not vary by state, although some state-specific factors (building codes, legal issues, condo approvals, etc.) can affect eligibility.

FHA Property Requirements

The property must:

1. Be Residential Real Estate

• Single-family homes

• 2-4 unit properties (if the borrower occupies one unit)

• Certain manufactured homes

• FHA-approved condominiums

• Planned Unit Developments (PUDs)

2. Be the Buyer's Primary Residence

FHA financing is not intended for:

• Investment properties

• Vacation homes

• Second homes

The borrower must intend to occupy the property within 60 days of closing.

3. Meet FHA Minimum Property Standards

An FHA appraiser must determine that the property is:

• Safe

• Sound

• Secure

Common issues that may prevent FHA approval include:

• Roof with less than approximately 2 years of remaining life

• Exposed wiring

• Broken windows

• Missing handrails where required

• Significant structural issues

• Active leaks

• Non-functioning HVAC (depending on climate and local expectations)

• Safety hazards

• Peeling lead-based paint in homes built before 1978

• Inadequate access to the property

4. Have Adequate Utilities

The property must generally have:

• Working electricity

• Potable water

• Functional sewage disposal

• Permanent heating system

5. Meet Minimum Access Requirements

The property must have:

• Legal and safe access

• Adequate road access

• No unresolved encroachments that materially affect value or marketability

FHA Appraisal vs. Conventional Appraisal

An FHA appraisal is more stringent than a conventional appraisal because the appraiser is evaluating:

1. Market value

2. FHA property condition standards

A home that qualifies for conventional financing may not qualify for FHA financing until repairs are completed.

Condominiums

Condominiums have an additional requirement:

• The condo project must generally be FHA-approved or qualify under FHA's single-unit approval rules.

You can verify condo eligibility through the FHA's official database:

HUD FHA Condo Search

Manufactured Homes

Manufactured homes may qualify if:

• Permanently affixed to a foundation

• Classified as real property

• Meet HUD construction standards

• Generally built after June 15, 1976

Does It Vary By State?

The FHA rules themselves are federal and largely the same nationwide. However, state-specific factors can affect eligibility:

Florida Example

A home in Florida may face additional scrutiny for:

• Roof condition

• Wind mitigation issues

• Sinkhole activity

• Unpermitted additions

• Septic and well systems

These are not unique FHA rules but issues that frequently arise in Florida transactions.

Other State Examples

• Mountain states: access easements and private roads

• Northern states: heating system requirements

• Coastal states: flood-zone considerations

• Rural areas: well and septic compliance

As a Listing Agent

If you're listing a property and want it to be FHA-financeable, pay particular attention to:

✅ Roof condition
✅ HVAC operation
✅ Electrical hazards
✅ Plumbing leaks
✅ Missing handrails
✅ Broken windows
✅ Peeling paint (pre-1978 homes)
✅ Water intrusion or mold
✅ Structural concerns
✅ Unpermitted additions

Many FHA issues can be identified before listing, which can prevent delays or failed contracts later.