FHA Appraisal Red Flags Checklist

What Buyers & Sellers Need to Know

FHA appraisals are a little different from conventional appraisals. The appraiser isn’t just determining value — they’re also checking that the home meets minimum property standards for safety, security, and livability.

Here are the most common issues that can delay or jeopardize an FHA loan.

Health & Safety Concerns

Peeling or chipping paint

  • Required to be repaired on homes built before 1978 (lead-based paint risk)

Exposed wiring or electrical hazards

  • Missing outlet covers

  • Open junction boxes

  • Unsafe electrical panels

Non-functioning heating system

  • The home must have a permanent, working heat source

Gas leaks or strong gas odors

Broken windows or missing glass

Roof & Exterior Issues

Roof problems

  • Less than 2 years of life remaining

  • Active leaks

  • Missing or damaged shingles

Poor drainage or standing water

  • Water pooling near the foundation

Foundation or structural concerns

  • Large cracks

  • Signs of settling or movement

Damaged siding or exposed wood

Property Access & Safety

No safe access to the property

  • Missing handrails on stairs (if required)

  • Unsafe or damaged walkways

Bedroom issues

  • Bedrooms must have proper egress (a window or door for emergency exit)

Security concerns

  • Exterior doors that don’t lock or are damaged

Utilities & Systems

Utilities must be on and functioning

  • Water

  • Electricity

  • Heat

Plumbing problems

  • Leaks

  • No hot water

  • Non-working toilets or fixtures

Attic, Crawl Space & Ventilation

Inadequate ventilation

Evidence of moisture, mold, or pest infestation

Blocked or inaccessible crawl spaces

Additional FHA “Deal Killers”

  • Missing appliances if they are built-in and part of the home

  • Non-permitted additions that affect safety

  • Safety hazards like exposed nails, broken decks, or loose railings

  • In-ground pools without proper fencing (depending on local requirements)

Pro Tip (What I Tell My Clients)

Most FHA appraisal issues are fixable — they just need to be addressed before closing. The key is catching them early so they don’t delay the transaction.

 

If you’re selling and expecting FHA buyers, a quick pre-listing walkthrough with a knowledgeable agent can save time, stress, and renegotiations.

If you’re buying or selling and want to know whether a home will pass FHA standards, I’m happy to take a look and give you honest guidance upfront.

 

Nancy Bergman
Salt Lake Home Pros - Fathom Realty 

www.saltlakehomepros.com

Your Salt Lake City local resource for smart, smooth real estate decisions.