FHA property & appraisal: what FHA actually requires—and what people only think FHA requires.
An FHA appraisal is both a valuation assignment and an FHA property-observation process. FHA is not demanding a perfect house; it is identifying value, marketability and conditions that affect health, safety, security or structural soundness.
Property & appraisal knowledge tree
Property condition & repairs
MPR/MPS, peeling paint, roofs, utilities, water, septic, crawlspaces, hazards and repair requirements.
Flipping & identity-of-interest
90-day rule, 91–180 day resales, owner of record and related-party transactions.
Condos & Single-Unit Approval
Approved projects, SUA, site condos, concentration and project eligibility.
Manufactured homes
Title II requirements and the important distinction from FHA Title I.
New construction
Proposed, under-construction and recently completed homes, inspections and builder documentation.
Value, appraisal review & ROV
Comparable sales, deficiencies, reconsideration requests and appraisal misconceptions.
Appraisal ≠ home inspection
The FHA appraisal is not a substitute for a comprehensive home inspection. An appraiser reports observable conditions required by FHA and develops an opinion of market value. Buyers should still consider an independent home inspection.
Official FHA sources
Primary policy baseline: HUD/FHA Single Family Housing Policy Handbook 4000.1, current update published August 12, 2026. Property, appraisal and program rules can change through Handbook updates, Mortgagee Letters and FHA INFO.
Handbook 4000.1 · Handbook supplemental references · FHA Condominiums