FHA Loan Property Requirements


If you’ve been looking at homes and plan on obtaining an FHA mortgage loan, this article is a must read!

FHA is one of the most popular loan programs in today’s Florida mortgage market.  With a very doable 3.5% minimum down payment requirement, coupled with less stringent underwriting guidelines, the FHA loan has been the go to program for new and upgrade home buyers alike.  FHA loans are great, as long as you know what to look out for.  You must understand that when planning on using an FHA loan to purchase a home in Florida, the condition of the property is a HUGE factor in whether or not you will be able to get a loan approval!  FHA is very concerned with safety, as the below list of requirements would indicate.


Here is a brief list of the areas that MUST be repaired prior to getting an FHA loan approved:

Site Hazards and Nuisances
Active or planned gas-drilling within 300 feet
Excessive noise or hazard from heavy traffic area
Dwelling or improvements within fall distance for overhead towers
Excessive smoke, fumes, offensive noises or odors

Grading and Drainage
Grading does not provide drainage away from structures
Standing water near structures

Individual Water and Sewage Systems
 Private sewage system show evidence of system failure
Separation between well and septic drain field less than 100 ft.
Separation between well and property line is less than 10 ft.

Wood Destroying Insects
 Structure is ground level and wood is touching ground
House or other structure show obvious evidence of infestation

Significant cracks
Visible holes in exposed areas that could affect structure
Damaged plaster, sheetrock, or ceiling materials in homes constructed before 1978
Significant water damage

Inadequate access
Evidence of holes
Support structure damaged
Significant water damage visible from interior
No ventilation by vent, fan, or window

Significant cracks that could affect or indicate structural soundness

Missing tiles, shingles, flashing etc
Signs of leakage

Heating/Cooling System
Unit does not turn on
Conditioned air is not emitted
Unusual noise
Smoke or irregular smell
Significant holes or deterioration on unit

Electrical System
Electrical switches don’t work
Outlets don’t work
Presence of smoke or sparks from outlet
Exposed frayed or unconnected wiring

Plumbing System
Significant drop or limitation in water pressure
No hot water
Toilets don’t function or have been removed
Toilet leaks
Sinks/bathtub/shower leaks
Sinks/bathtub/shower does not work or have been removed

Missing or inoperable exterior doors
Broken or missing stairs
Absence of built-in appliances
Swimming pools not operational, not maintained, or in need of repair


The appraiser that is sent out to the property to ascertain the value will be the one inspecting for these items.  You can save yourself a ton of headache by referencing this list when looking at Florida homes for FHA purchase.  If one or more of these items is an issue with the property, address it before going in to contract and let the seller know that you are applying for an FHA loan.  Communication is the key, be open and honest and your home purchase will go much smoother.



About the Author

Jason Gonzalez

Jason is a lifelong student of the mortgage industry that prides himself on his innovative ability to consistently find the best deals for his clients. With well over a decade of industry knowledge and experience, you can trust that he will help guide you in the right direction for your home financing needs. What separates Jason from everyone else is the fact that he cares so much about the people he helps, driving him to go above and beyond to make the dream of homeownership possible for all.

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