FHA & VA Property Requirements Overview (MPS) Hud.gov

FHA & VA Property Requirements Overview

Objective: This report outlines the minimum property standards (MPS) required by the U.S. Department of Housing and Urban Development (HUD) for FHA loans and the Department of Veterans Affairs (VA) for VA loans. The primary goal of these inspections is to ensure the property is safe, sound, and structurally secure for the occupant.

Key Principles for FHA/VA Appraisals:

1. Safety: The property must not have any conditions that could harm the health or safety of the occupants.

2. Soundness: The structure must be physically sound, with no major structural defects or conditions leading to such defects.

3. Security: The property must protect the health and safety of the occupants and the security of the property.

FHA/VA Inspection Checklist: “Must-Fix” Items

This checklist covers the most common repair requirements that will be mandated by an FHA/VA appraiser before the loan can be approved.

EXTERIOR REQUIREMENTS

1. Roof & Attic

• Roof Condition: Must be watertight and have a remaining economic life of at least 2-3 years. No more than two layers of roofing.

• No Active Leaks: Evidence of active leaks in the attic or on interior ceilings is a mandatory repair.

• Flashing: Must be present and intact around chimneys, vents, and valleys.

• Gutters & Downspouts: Must be present, securely attached, and divert water away from the foundation.

2. Structural Integrity (Foundation & Walls)

• Foundation: No major cracks, settling, or signs of structural failure. Must be free of standing water or excessive moisture in crawl spaces.

• Exterior Walls: No rotting, significant damage, or holes in siding, brick, or stucco.

3. Paint (Lead-Based Paint Hazard)

• Pre-1978 Homes: Any cracked, chipping, peeling, or otherwise damaged paint on the exterior or interior must be scraped, primed, and repainted. This is a critical health and safety requirement.

4. Windows & Doors

• Windows: Must be operational (open, close, and stay open on their own). Must have intact glass with no cracks. Must have functioning locks.

• Storm Windows/Doors: If present, must be functional.

• Entry Doors: Must be secure and lockable.

5. Utilities

• Water, Electric, Gas: All utilities must be on and functioning for the appraisal inspection.

• Meter Bases: Must be secure and undamaged.

6. Site & Drainage

• Grading: The ground must slope away from the foundation to prevent water pooling.

• Standing Water: No persistent standing water against the foundation.

• Debris: Property must be free of debris and overgrown vegetation that could cause pest issues or damage.

7. Stairs, Decks & Porches

• Handrails: Must be present and secure for any stairway with four or more risers.

• Structural Soundness: All decks, porches, and balconies must be structurally sound with no rotting wood.

8. Pest Inspection (VA-Specific & FHA if noted)

• VA Requirement: A separate Wood-Destroying Insect (WDI) inspection report (Termite Report) is mandatory for a VA loan. Any active infestation must be treated.

• FHA Requirement: An inspection may be required if the appraiser notes evidence of infestation.

INTERIOR REQUIREMENTS

1. Health & Safety

• Lead-Based Paint (Pre-1978): As mentioned exteriorly, all interior damaged paint must be remediated.

• Asbestos & Mold: If suspected, may require further inspection by a specialist. Visible mold or suspected asbestos-containing materials that are damaged are a required repair.

• Smoke & Carbon Monoxide Detectors: Must be present and operational on every level of the home, including outside each sleeping area. (Local codes may have stricter requirements that the appraiser must follow).

2. Electrical System

• No Exposed or Frayed Wiring: All wiring must be contained and protected.

• Functioning Outlets & Switches: Must work properly.

• Electrical Panel: Must be secure, with a covered panel and no signs of rust or burning. No broken breakers.

3. Plumbing System

• Water Pressure: Must be adequate, with both hot and cold water.

• No Leaks: Under sinks, at water heater, or at fixtures.

• Water Heater: Must be properly vented and have a Temperature and Pressure (T&P) relief valve that is properly piped to within 6-18 inches of the floor.

• Functional Toilets: Must be securely mounted to the floor and not leak at the base.

4. Heating & Cooling (HVAC)

• Heating System: Must be operational and capable of heating the living areas of the home to a minimum of 50°F. This is non-negotiable, even in warm climates.

• Cooling System: If a central system is present, it must be operational. There is no requirement to have a cooling system.

• Venting: All fuel-burning appliances (furnace, water heater) must be properly vented to the outside.

5. Kitchen & Bathrooms

• Functioning Appliances: The stove/oven must be operational. If the refrigerator is included, it must also work.

• Ventilation: Bathrooms must have a functional ventilation fan or an operable window.

• Flooring: Must be present and in serviceable condition (no rot or trip hazards around toilets).

6. General Living Condition

• Trip Hazards: Flooring must be even with no significant tears in carpet or lifting tiles.

• Ceilings & Walls: Must be intact with no significant holes or water damage stains that indicate an active leak.

• Access & Egress: All bedrooms must have at least one window for emergency escape and rescue. The basement must have proper egress if used as a bedroom.

Key Differences & Final Notes

Disclaimer: This checklist is a guideline. The final determination is made by the licensed appraiser on the day of the inspection, and their specific requirements will supersede this list. Local and state building codes may also impose additional mandatory repairs.