FHA repairs: the house does not have to be perfect.
FHA focuses on conditions affecting safety, security, soundness and continued marketability. Cosmetic wear is not automatically an FHA repair.
MPR versus MPS
Minimum Property Requirements (MPR) apply to existing housing, while Minimum Property Standards (MPS) are used for new construction. The appraiser identifies observable conditions and required repairs or inspections under FHA policy.
Common condition categories
| Issue | FHA concern |
|---|---|
| Peeling/chipping paint | Especially important for pre-1978 homes because defective paint can create lead-based-paint requirements. Not every scuff or faded wall is an FHA repair. |
| Roof | Must protect the structure from moisture and be reasonably functional. A roof is not automatically rejected merely because it is old. |
| Electrical | Exposed wiring, unsafe conditions or non-functioning essential systems can require correction. |
| Heating | The property generally needs an adequate permanently installed heating system appropriate to the market/climate, subject to FHA requirements. |
| Water / plumbing | Safe, adequate water and functioning plumbing are important. Private wells have additional location/testing requirements where applicable. |
| Septic | Individual sewage systems can be acceptable; observable malfunction or local-health requirements can trigger further evaluation. |
| Foundation / structure | Observable structural problems, excessive settlement or unsafe conditions may require repair or specialist inspection. |
| Crawlspace / attic | The appraiser observes accessible areas as required; moisture, structural or other material deficiencies can require action. |
Termites and wood-destroying insects
FHA does not impose a universal termite inspection on every existing home in every state. Inspections/treatment can be required when there is evidence of active infestation, mandated local requirements, new-construction requirements, or other applicable FHA conditions.
Repairs before closing
When an appraisal is made subject to repair, the required condition generally must be corrected and appropriately documented before FHA insurance endorsement unless a specific FHA repair-escrow or program provision applies.
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