Every FHA loan requires an appraisal, and it does double duty: it confirms the home is worth what you’re paying, and it checks that the property meets FHA’s minimum standards. Here’s what to expect.
What the appraisal checks
An FHA appraiser estimates market value and reviews the home against FHA’s minimum property requirements, which focus on three S’s: safety, security, and soundness. The home should be safe to live in, secure, and structurally sound.
Common Florida red flags
Issues that can hold up an FHA appraisal include peeling paint on homes built before 1978 (lead-paint concern), roof problems (a real factor in Florida’s climate), missing handrails, exposed wiring, inoperable HVAC, or major water damage. Florida-specific concerns can include roof age and certain insurance considerations.
Appraisal vs. home inspection
This trips up a lot of buyers: an FHA appraisal is not a home inspection. The appraisal is for the lender and covers value plus minimum standards. A home inspection is for you — a much more detailed look at the home’s condition. We strongly recommend getting your own inspection too.
What if the home doesn’t pass?
If the appraiser notes required repairs, they typically must be completed before closing. Often the seller handles them, or it becomes a negotiation point. A 203(k) renovation loan can also finance repairs into the loan.
Key takeaways
- FHA appraisals check value plus safety, security, and soundness.
- Common issues: peeling paint, roof, handrails, wiring, HVAC.
- An appraisal is not a home inspection — get both.
- Required repairs usually must be done before closing.