FHA Rating Requirements for Homes and Condos The FHA housing requirements state that FHA approved condominiums and apartments must be safe, sound, and secure in order to qualify for an FHA loan. The assessors decide whether the minimum FHA ownership requirements are met. In order to take advantage of an FHA loan, the borrower and the property must meet certain criteria. You must meet the financial requirements of your lender and the property must meet the FHA housing requirements set by the Department of Housing and Urban Development (HUD). All homes are subject to HUD’s “minimum ownership standards”, and new construction must also meet the agency’s “minimum ownership standards”. The FHA property rules ensure that the home is structurally sound, livable, and worth at least as much as you wish to borrow. Basic requirements for the FHA enclosure HUD’s minimum real estate requirements are as follows: Homes purchased with FHA loans must be safe. In this case, “safe” means something other than “safe from thieves”. Rather, the home should be a safe investment, which means that it will hold value for the life of the loan. FHA Assessment Checklist For a complete list of FHA assessment guidelines, see the HUD Single Family Policy Manual. But, fair warning, this is a fairly dense read. Here are some important points: The foundation must be structurally sound. The water must come from the base. Utilities, including water, sewerage, heating, and electricity, should be activated during the assessment. All devices must function properly. The water pressure must be sufficient and hot and cold water must be available. The paint cannot be chipped, peeled off, peeled off, or broken. Sockets and switches must work properly. Windows must be opened, closed, and locked. The roof cannot leak and must have a useful life of at least two years. Attics and crawl spaces must be ventilated and free from damage. There is no active termite infestation. The property must be reasonably free from environmental hazards, odors, and excessive noise.