FHA Appraisal Guidelines: A Beginner’s Guide

You’ll need an FHA appraisal to buy or refinance with an FHA loan. Knowing what to expect makes it less intimidating.

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Updated · 6 min read
Profile photo of Abby Badach Doyle
Written by Abby Badach Doyle
Lead Writer
Profile photo of Michelle Blackford
Reviewed by Michelle Blackford
Profile photo of Alice Holbrook
Edited by Alice Holbrook
Assigning Editor
Nerdy takeaways
  • During the appraisal, a professional will assess the home’s condition and determine its fair market value.

  • An FHA appraisal can require repairs before the loan is approved. That’s more strict than a conventional loan.

  • An appraisal isn't a home inspection. It’s still a good idea to get a home inspection for your own benefit.

Nerdy takeaways
  • During the appraisal, a professional will assess the home’s condition and determine its fair market value.

  • An FHA appraisal can require repairs before the loan is approved. That’s more strict than a conventional loan.

  • An appraisal isn't a home inspection. It’s still a good idea to get a home inspection for your own benefit.

FHA loans, backed by the Federal Housing Administration, can be a great fit for borrowers with limited savings or lower credit scores. In general, FHA loan requirements are more flexible than those of conventional loans. However, one requirement is a little more strict: the FHA appraisal.

Don’t stress, though. While the FHA appraisal has a tough rep, it’s only to make sure you’re buying a safe and solid house that’ll be a good investment over time. Here’s what to expect with an FHA appraisal.

What is an FHA appraisal?

An FHA appraisal is a professional assessment of a home to make sure it's eligible for financing through an FHA loan. Like a home appraisal for other types of mortgages, an FHA appraisal includes a professional opinion of the property’s value.

During an FHA appraisal, the property is held to requirements set by the U.S. Department of Housing and Urban Development, or HUD. To be eligible for FHA financing, a home must meet HUD’s three necessary requirements, or “minimum property standards.” They are:

  • Safety. The property has no major issues that would affect occupants’ health.

  • Soundness. The home is structurally sound. 

  • Security. The home is secure, with all windows, doors, locks and lighting in good working order.

How do I pass an FHA appraisal?

After their walk-through, the appraiser will recommend what needs to be done to make the home “safe, sound and secure.” Before you can close on an FHA loan, you’ll have to make any repairs flagged in the appraisal — whether they’re small (like peeling paint) or large (like a crack in the foundation).

That’s different from a conventional mortgage appraisal, which simply reports the fair market value of the home.

🤓Nerdy Tip

Given the appraisal requirement, it can be harder — but not impossible — to win a bidding war with an FHA loan. An experienced buyer’s agent can suggest ways to make your offer more competitive. It’s not always about price: Flexibility on closing and move-in dates can be a big selling point, even in a hot market.

When is an FHA appraisal required?

Most types of FHA loans require an FHA appraisal during the mortgage underwriting process. Specifically, that includes:

However, an FHA appraisal isn't required for:

  • FHA streamline refinance loans. (Like its name suggests, a streamline refinance requires less up-front paperwork and documentation.)

  • FHA Title 1 loans, a fixed-rate loan used for small to moderate home improvement projects.

Did you know...

The federal government insures FHA loans, but it doesn’t lend the money directly. FHA loans are issued by private lenders, including banks, credit unions and nonbanks (a financial institution that lends money but doesn’t offer checking or savings accounts).

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Rocket Mortgage - PURCHASE logo
Check Rate

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating 
Rocket Mortgage - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
580