There is nothing more frustrating than finding the perfect home, negotiating a contract, then realizing it does not meet the criteria for appraisal. FHA and USDA (Rural Housing) both require that the property you purchase meet a minimum property standard. Use the information below to help guide you through the shopping and negotiation process.

Here is a list of MOST COMMON AREAS OF THE HOME THAT NEED CORRECTED OR REPAIRED. However, FHA or USDA are not limited to the following and may require other items not disclosed on this document. *Please note that I am not a licensed appraiser, and this list is not inclusive of things that can be called out in an appraisal.

BASIC REQUIREMENTS
 No peeling and/or chipped paint inside or outside. The greatest missed areas are older double hung wood windows, roof overhangs, foundations, detached garages, sheds, porch floors, railings and fences.
 All roofs must have an estimated remaining life of 2 years or more. All flat roofs require an inspection.
 Garage door openers must reverse or stop when met with resistance.
 All steps inside and outside with 3 or more risers require handrails. Outside handrails must be metal or pressure treated wood.
 Hot water heaters require release valve and an overflow pipe.
 All rooms must have at least two electrical outlets.
 Outlets within 6 feet of sinks/water need to be GFI outlets.
 Baths must have an electrical outlet, a window and/or exhaust fan.
 Bi-fold doors can be on closet entrances only
 All broken windows/cracked glass must be replaced.
 All broken window sash ropes must be repaired.
 All windows must open and remain in place if opened.
 All windows and exit doors must have locks.
 All floors must have smoke alarms, including basement and attic.
 Attic must have windows and/or vents.
 All crawl spaces must be at least 18” high from bottom of joist to floor, be vented and have vapor barrier.
 All rooms must have a heat source. Duct work or direct heat to all rooms, if feasible. Electric baseboard is acceptable if already in place before appraisal, and no gravity heat.
 Any exterior rotting wood must be replaced.
 Sidewalks must be level and in good condition.
 Pools must be fenced in. Above ground pools must have a locked gate. Pool must be functioning or filled in.
 Electrical service must be in good working condition and at least 60 amps. Knob and tube is acceptable but must be in good condition (MUST BE COMMON TO AREA AND ADEQUATE.)
 Fireplace and wood/coal burners must be clean and may require inspection.
 All utilities must be on at time of the appraisal inspection, including hot water heaters.
 Wood decks/porches must be safe, no broken or loose floorboards or rails. Raised decks (i.e. rear of a bi-level) must not have rails where small child can fall through. Rails no more than 6” apart.
 Built in garages must be fume and fireproofed to all living spaces and have a steel entry door if entry into house.
 Furnace, hot water heaters and built in appliances must have an expected two years or more. If questionable they will require and inspection.
 Roofs, foundations, and walls cannot have holes or leaks.
 No plumbing leaks.
 Outlets must be connected and functioning.
 Rotting floors i.e. at toilet or tubs must be replaced.
 Carpeting on interior or exterior steps, which is torn, must be replaced or removed. (TRIPPING HAZARD)

WELLS AND SEPTIC
 Well must be 50’ from the septic tank.
 Well must be 100’ from the septic tank drain field.
 Well cap must be exposed for appraisers to view and measure to septic tank and field.
 All wells cap must be outside the foundation.
 No mechanical chlorinators or hand dug wells.

OTHER CONDITIONS
 Dirt basements are acceptable if common to area and mechanicals are on concrete slab.
 MUST have dependable water and waste disposal system –well and septic are acceptable.


MUST HAVE THE FOLLOWING INSPECTIONS:
o Water supply (Lead and Acute Contaminants, including Nitrates and Nitrites and Microbial contaminants, i.e. Total and Fecal Coliform (E. Coli)), if not Public
o Sewage disposal system, if not Public may be required

*Manufactured Housing have additional requirements


What if the property I am purchasing does not meet these standards?

The appraiser will state a value of the home but make the value subject to repairs and then provide a list of repairs needed for the home to meet the minimum property standards. Contact The French Team to learn more about options such as seller paid repairs, escrow hold back for repairs, or FHA renovation loans that allow you to finance in the cost of renovation.

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