Buying a home with an FHA loan? Then you need to understand the FHA home inspection process and the specific FHA inspection requirements that can make or break your loan approval. This guide will walk you through what’s involved, how to prepare, and what to expect—so you can close your deal smoothly.
What’s the Point of an FHA Inspection?
An FHA home inspection is part of the FHA loan process where a licensed appraiser checks the home to make sure it’s safe, livable, and structurally sound. It’s not the same as a full home inspection, but it ensures the property meets the FHA’s minimum standards before the loan can be approved.
The point of an FHA inspection is to make sure the home is safe, livable, and ready for FHA financing. It protects both the buyer and the lender by confirming that the property:
- Is structurally sound
- Is safe to live in
- Has no major health or safety issues
- Meets basic livability standards
Unlike a conventional appraisal, which focuses mostly on home value, an FHA inspection also checks the property’s physical condition to ensure it qualifies for an FHA loan.
FHA Inspection Requirements: What Appraisers Look For
An FHA-approved appraiser checks the home to make sure it meets HUD’s minimum property standards for safety, livability, and structural soundness. This is part of the appraisal—not a full home inspection.
Here’s what they typically look for:
- ✅ Roof – No leaks; must last at least 2 more years
- ✅ Foundation – Stable, no major cracks
- ✅ Heating – Working system that heats all living areas
- ✅ Plumbing – Functional with hot/cold water
- ✅ Electrical – No exposed wires; safe panel
- ✅ Windows & Doors – Must open, close, and lock properly
- ✅ Bathrooms – At least one working toilet, sink, and tub/shower
- ✅ Attic/Basement – No standing water, mold, or major damage
- ✅ Stairs/Railings – Secure and safe to use
- ✅ Paint – No chipping lead-based paint in pre-1978 homes
- ✅ Water & Sewage – Safe water source and proper drainage
- ✅ Safe access – Property must have legal and usable access
If the home doesn’t meet these standards, repairs may be required before the loan is approved.
What Happens If a Home Fails the FHA Inspection?
If the home doesn’t meet FHA standards, the appraiser will issue a “subject to repairs” appraisal. In that case:
- The seller may be required to fix the issues before closing.
- The buyer can negotiate repairs or walk away.
- The lender may delay or deny the loan until repairs are complete and re-inspected.
Does FHA Require a Traditional Home Inspection?
No—the FHA does not require a standard home inspection. However, it does require an appraisal that includes basic condition checks.
Smart buyers should still order a full home inspection to uncover deeper issues not visible to the appraiser.
💡 FHA appraisals protect the lender. A regular home inspection protects you.
Who Performs an FHA Home Inspection?
- 🏠 FHA Inspection/Appraisal: Done by a HUD-approved appraiser
- 🧰 Standard Home Inspection: You can hire any licensed home inspector for a separate, more thorough evaluation
FHA Appraisal Guidelines: Timeline and Cost
- ⏱️ How long does an FHA appraisal take? → Usually 5–10 business days
- 💲 Typical cost: $400–$700 (varies by location)
- 🤝 Who pays? → Buyer typically pays unless otherwise negotiated
- 🗓️ Valid for: 120 days (can be extended)
FHA Appraisal vs. Home Inspection: Why You Need Both
Many homebuyers mistakenly assume that an FHA appraisal is the same as a home inspection. In reality, these are two very different evaluations—and both serve important but separate purposes.
✅ In Simple Terms:
- An FHA appraisal is required to get approved for your FHA loan—it ensures the home meets HUD’s minimum property standards and is worth the loan amount.
- A home inspection is optional but essential—it gives you a full picture of the home’s true condition and can save you from expensive surprises later.
Here’s how they compare:
| Task | FHA Appraisal | Home Inspection |
| Required for Loan? | ✅ Yes – Mandatory for FHA loan approval | ❌ No – But strongly recommended by experts |
| Evaluates Home Condition | ✅ Basic check for health, safety, and livability | ✅ Full review of structure, systems, and defects |
| Helps Negotiate Repairs | ⚠️ Limited – Only required repairs for FHA approval | ✅ Yes – Can be used to negotiate or walk away |
| Conducted By | HUD-approved appraiser | Licensed home inspector |
| Focus | Meets FHA loan standards and fair market value | Reveals issues that may impact your decision |
FHA Appraisal vs. Conventional Appraisal: What Is the Difference?
✅ In Simple Terms:
- FHA appraisals check both the value and condition of the home.
- Conventional appraisals focus mainly on value—not safety or repairs.
- Either way, a separate home inspection is your best protection before buying.
If you’re financing a home, the type of loan you choose determines what the appraiser will look for. Here’s a quick side-by-side comparison of FHA vs. conventional appraisals:
| Feature | FHA Appraisal | Conventional Appraisal |
| Property Condition Check | ✅ Yes – Appraiser checks for safety, health, and livability | ⚠️ Limited – Focus is mainly on market value |
| Safety & Livability Requirements | ✅ Required – Must meet strict FHA guidelines | ❌ Not required |
| Repairs Required Before Closing | ✅ Yes – Repairs must be completed to close | 🔁 Often negotiable between buyer and seller |
| Who Orders the Appraisal | ✅ Ordered by FHA lender | ✅ Ordered by conventional lender |
| Should You Still Get a Home Inspection? | 🔍 Strongly recommended – Appraisal isn’t a full inspection | 🔍 Also recommended to uncover hidden issues |
Common FHA Home Inspection FAQs
Does FHA require a home inspection?
Not a traditional one, but yes, an FHA appraisal with a property condition check is required.
What does an FHA inspection include?
Safety, structural soundness, working systems, and habitability checks per HUD’s standards.
What happens if a home doesn’t pass the FHA appraisal?
Repairs must be completed before closing. If not, the loan may be delayed or denied.
Who pays for FHA inspections?
The buyer typically pays for the appraisal. A regular home inspection is also buyer-paid.
What defects will FHA overlook?
Cosmetic issues like worn flooring, outdated cabinets, or chipped paint (post-1978 homes).
Is a home inspection required for a conventional loan?
No, but a conventional appraisal is still required.
Final Thoughts: Why FHA Home Inspections Matter for Buyers
If you’re buying with an FHA loan, it’s critical to understand the FHA inspection requirements upfront. This inspection safeguards your investment by making sure your new home is safe, livable, and structurally sound.
While it won’t uncover every detail, it plays a major role in your loan approval—and your peace of mind.
Call to Action
📍Buying a home with an FHA loan in Sacramento?
Don’t let last-minute repair surprises delay your closing.
✅ Schedule a professional home inspection today to catch any hidden issues before the FHA appraisal.
🏠 At Good Life Inspections, we help buyers ensure their future home passes every step—safely, affordably, and with confidence.
