FHA and VA loans require an appraiser to verify the home meets Minimum Property Standards (FHA) or Minimum Property Requirements (VA). This is not a buyer-protective home inspection — it is a loan-eligibility review. You should always get a separate Master Certified home inspection in addition to the FHA/VA review.
FHA Minimum Property Standards (MPS)
FHA-insured loans require the property meet HUD's Minimum Property Standards. The FHA appraiser checks that the property:
- Is structurally sound
- Has functional heating, plumbing, and electrical
- Has a roof in adequate condition (typically 2+ years remaining)
- Has no active wood-destroying organism evidence
- Has no peeling lead-based paint (pre-1978 homes)
- Has functional smoke detectors
- Has handrails on stairs
- Has unbroken windows
- Has adequate ventilation in attics and crawlspaces
- Has clean drinking water source
VA Minimum Property Requirements (MPR)
VA loan requirements are similar to FHA but with some additional veteran-protective items:
- All FHA MPS items above
- Adequate access from public street
- Drinkable water from approved source
- Sufficient living space for family size
- Functional cooling in hot climates (less critical in southern MN)
- Wood-destroying organism inspection (clear required, not "evidence of past treatment")
Common FHA/VA disqualifiers in southern Minnesota
Across our service area, the most common items that flag during FHA/VA appraisal:
- Peeling lead-based paint on pre-1978 homes — common in older Fairmont, Blue Earth, Mankato neighborhoods
- End-of-life asphalt roofs — many homes from the 1990s building wave
- Inadequate handrails — common on older homes with original stairs
- Active termite or carpenter ant evidence
- Foundation issues — Federal Pacific/Zinsco panels, severe foundation cracks
- Broken or non-functional windows
- Missing or non-functional smoke and CO detectors
Why you still need a separate inspection
FHA and VA reviews are designed to protect the loan investment, not the buyer. The appraiser is not looking for major defects, deferred maintenance, or potential future expenses. The appraisal does not include:
- Detailed evaluation of plumbing or electrical condition
- Roof remaining service life estimate
- Furnace or A/C remaining service life
- Sewer lateral evaluation
- Radon testing
- FLIR thermal imaging
- Hidden defect identification
A standard Master Certified home inspection covers all of the above and is essential due-diligence regardless of loan type.
Common questions
Is an FHA inspection the same as a regular home inspection?
No. FHA "inspection" is actually a Minimum Property Standards (MPS) appraisal review by the FHA appraiser. It is not a buyer-protective home inspection. You should always get a separate buyer's home inspection in addition to the FHA appraisal.
What is the difference between FHA and VA inspection requirements?
FHA uses HUD Minimum Property Standards. VA uses Minimum Property Requirements (MPR), which are similar but include some additional requirements like a clean source of drinking water and adequate access to the property.
Do I need a separate home inspection if I am using an FHA or VA loan?
Yes. The FHA/VA review focuses on minimum standards for loan eligibility, not on identifying defects you should know about. A standard buyer's inspection is essential.
What disqualifies a home from FHA financing?
Common disqualifiers: peeling lead-based paint on pre-1978 homes, missing handrails, inadequate roof life, inadequate access to mechanicals, broken windows, evidence of wood-destroying organisms, and inadequate hot water.
Can a seller refuse to make FHA-required repairs?
Yes — and they often do. If FHA requires repairs the seller will not make, the buyer either pays for them, finds a different home, or switches to a conventional loan that does not require the repairs.
Buying with an FHA or VA loan in southern MN?
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