What Repairs Do You Have to Make for an FHA Deal?

Buying or selling a home with an FHA loan can be a fantastic opportunity—FHA loans are popular because of their lower down payment requirements and more flexible credit guidelines. However, FHA financing comes with strict property condition standards that must be met before the loan can close.

If you’re a seller, knowing what repairs are required can help you avoid surprises and delays. If you’re a buyer, understanding these rules helps you spot potential red flags before you fall in love with a home that won’t qualify.

Let’s break down exactly what repairs you have to make for an FHA deal, why they matter, and how to handle them strategically.

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Why FHA Has Repair Requirements

The Federal Housing Administration (FHA) insures the loan—not the property. Their goal is to protect buyers from unsafe living conditions and protect lenders from properties that pose excessive risk.

FHA guidelines focus on three core principles:

1. Safety – Is the home safe to live in?

2. Security – Is the property protected from intrusion and the elements?

3. Soundness – Is the structure in good, working order?

If a home fails in any of these areas, the FHA appraiser will flag it for repair.

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The FHA Appraisal Is Also a Safety Inspection

Unlike conventional loans, an FHA appraisal isn’t just about value—it also checks for health and safety issues. The appraiser will note any required repairs, and those items must be fixed before closing unless the loan is structured as an FHA 203(k) renovation loan.

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Most Common FHA Required Repairs

Here are the big-ticket items that most often come up in FHA transactions:

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1. Peeling, Chipping, or Cracked Paint (Especially Pre-1978 Homes)

This is one of the most common FHA repair issues.

• Any peeling or chipping paint must be scraped, primed, and repainted

• This is especially strict for homes built before 1978 due to lead-based paint concerns

• Includes exterior trim, siding, windows, doors, fences, sheds, and garages

Why it matters: Lead paint exposure is a serious health risk, especially for children.

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2. Roof Must Have at Least 2 Years of Life Left

The roof doesn’t have to be new, but it must be:

• Free of leaks

• In good condition

• Expected to last at least 2 more years

Missing shingles, sagging areas, or visible water damage will trigger a repair requirement.

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3. Electrical Issues & Exposed Wiring

FHA requires safe and functional electrical systems.

Common problems:

• Exposed or frayed wiring

• Missing outlet covers

• Non-functioning outlets or switches

• Open junction boxes

Fix: Licensed electrician repairs are usually required.

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4. Plumbing Must Be Functional & Leak-Free

The plumbing system must:

• Have working water pressure

• Be free of leaks

• Properly drain

• Have a functional water heater

Leaking pipes, non-working toilets, or visible water damage are all red flags.

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5. Heating System Must Work

The home must have a permanent, functional heating system capable of maintaining adequate heat.

• Space heaters are NOT acceptable

• The system must be permanently installed

• It must heat all livable areas of the home

If the heat doesn’t turn on during appraisal, expect a repair requirement.

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6. No Active Termite or Pest Infestation

If the appraiser sees signs of:

• Termites

• Carpenter ants

• Wood-destroying insects

You’ll likely need a pest inspection and treatment before closing.

Any structural damage caused by pests must also be repaired.

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7. Structural Issues Must Be Addressed

FHA will flag:

• Foundation cracks

• Significant settlement

• Sagging floors

• Rotting floor joists or beams

• Damaged load-bearing walls

These usually require a structural engineer’s evaluation and professional repair.

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8. Windows & Doors Must Open, Close & Lock

All exterior doors and windows must:

• Open and close properly

• Lock securely

• Be weather-tight

Broken glass, rotted frames, or missing locks are common repair items.

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9. Handrails & Guardrails Are Required

If there are:

• Three or more steps

• Balconies, decks, or raised landings

FHA requires proper handrails and guardrails for safety.

Loose or missing rails = required repair.

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10. No Trip Hazards

This includes:

• Broken or uneven sidewalks

• Cracked driveways with sharp elevation changes

• Loose flooring

• Torn carpet

• Missing floor tiles

If it’s a tripping hazard, FHA will likely require it to be fixed.

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11. The Property Must Be Weather-Tight

The home must be protected from the elements. This means:

• No active leaks

• No holes in siding

• No missing shingles

• No rotted exterior wood

• No broken windows

Water intrusion is a big deal for FHA.

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12. Appliances Must Work (If They’re Included)

If appliances are considered part of the sale (built-in or listed in the contract), they must be:

• Present

• Functional

This includes stoves, ovens, and built-in microwaves.

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What FHA Does Not Usually Require

This is important: FHA is not a cosmetic police force.

They typically do not require:

• New flooring

• New countertops

• Updated cabinets

• Modern fixtures

• Fresh interior paint (unless it’s peeling)

• Updated kitchens or bathrooms

Ugly ≠ unsafe.

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Who Pays for FHA Repairs?

This is negotiable and depends on your contract:

• Seller pays – most common

• Buyer pays – sometimes allowed, but must be done before closing

• Split cost – negotiated

• FHA 203(k) loan – buyer finances repairs into the loan

Important: The repairs must be completed before closing, and the appraiser may need to re-inspect.

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Can You Sell a Home “As-Is” With FHA?

Short answer: Not really.

You can list it as-is, but FHA will still require the safety and habitability issues to be fixed. If the seller refuses, the buyer will have to switch loan types or walk away.

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How to Prepare for an FHA Appraisal (Seller Tip)

If you’re a seller and you think your buyer is using FHA financing:

• Walk the exterior and look for peeling paint

• Test all outlets, lights, and switches

• Turn on the heat

• Check for leaks under sinks

• Secure loose handrails

• Replace broken window panes

• Repair obvious trip hazards

Spending a few hundred dollars upfront can save weeks of delays and thousands in concessions later.

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FHA Repairs Don’t Have to Be Scary

Yes, FHA has stricter standards—but they’re designed to protect everyone involved. Most required repairs are minor, affordable, and straightforward. With the right preparation and guidance, FHA deals can close smoothly and on time.

If you’re buying or selling with FHA financing and want help navigating the repair process, working with an experienced local agent makes all the difference.