FHA property standards
FHA property standards: what a home has to meet
FHA doesn't just qualify the borrower — it also sets minimum standards for the property itself. This isn't a full home inspection; it's a narrower check for safety, security, and soundness. Here's what that means in practice, plus the two situations that trip up buyers most: condos and manufactured homes.
What FHA checks: appraisal vs. inspection
FHA requires an appraisal, not a home inspection. The appraiser confirms value and looks for the specific issues FHA cares about: safety hazards, structural soundness, and basic habitability.
We still recommend getting an independent inspection. It goes deeper into roof age, plumbing, HVAC, and other things an appraisal won't catch — that's about protecting your own investment, not an FHA requirement.
Issues that commonly trigger required repairs
- Peeling paint, especially on homes built before 1978 under lead paint rules
- Missing handrails on stairs or elevated decks
- Exposed wiring or open electrical panels
- Utilities that aren't functional at the time of appraisal
- Roof damage or visible active leaks
- Well and septic system issues on rural properties
When repairs are required, the seller can usually complete them before closing, or in some cases funds can be escrowed at closing so the work is finished afterward. Homes that need more extensive work may fit an FHA 203(k) renovation loan instead.
FHA-approved condos
- Either the whole condo project is FHA-approved, or the individual unit qualifies through single-unit approval (sometimes called spot approval) even when the building isn't on HUD's approved list
- Approved projects generally need at least 50% owner-occupancy, adequate insurance, a functioning HOA with adequate reserves, and no more than a limited share of commercial space
- Ask the listing agent or HOA whether the project is FHA-approved before writing an offer — finding out after underwriting starts costs real time
- Credit requirements are the same as any other FHA loan: 580+ for 3.5% down, 500–579 requires 10% down
Manufactured and mobile homes
Manufactured housing is a real and often overlooked path to ownership in rural Texas. FHA does finance it, but the rules differ from a typical single-family purchase.
- The home must have been built on or after June 15, 1976, when HUD construction and safety standards took effect. Older units, often still called mobile homes, are not FHA-eligible
- Title I covers a manufactured home on leased land or in a community — a personal property loan with smaller loan amounts
- Title II covers the home and the land financed together as real property, follows FHA's regular county loan limits, and looks much more like a standard mortgage
- For Title II, the home must sit on a permanent foundation meeting HUD's Permanent Foundations Guide, and the transportation undercarriage must be removed before closing
- Talk to a loan officer early — foundation and titling issues are the most common reason these deals stall
This site is not affiliated with or endorsed by HUD, the FHA, or any government agency. Rate and payment examples are estimates for illustration only. Rates are subject to change and this is not a commitment to lend. Actual APR depends on credit, occupancy, loan amount, and property details. Guidance on this page is general; whether a specific property meets FHA standards is determined by the appraiser and underwriter for that file.