FHA Home Loan Appraisals - Basements

The following are the general guidelines required for a property.  Any condition not met by the list below may require the property to be repaired in order to meet FHA appraisal guidelines.  Refer the HUD handbook 4150.2 for more information.

Basements and Crawl Spaces: 

Basements must be examined by the FHA appraiser for dampness or wetness, any obvious structural problems and  the condition of the furnace, hot water heater, and/or other components located there.

Sump pumps are acceptable to HUD/FHA guidelines provided that they are properly functioning at the time of appraisal.  The sump pump may be hard wired by an acceptable wiring method or may have a factory electrical cord that is connected to a receptacle suitable for such use.  Use of an extension cord for the sump pump is not acceptable.  Though the sump pump is not a cure-all for water problems, the appraiser may still elect to reject the property if there is significant incurable ponding of water in the basement.

Property owners must insure that there adequate access to the property's crawl space, clear of debris, and is properly vented.  The appraiser must enter the crawl space with a minimum entry of his/her head and shoulders (unless access is not possible, could damage the property, or an adverse situation is suspected).  HUD guidelines recommend a minimum height of 18 inches from the bottom of the joists in order to provide adequate space for maintenance and repair.  Furthermore, the crawl space must not be excessively damp and not have any water ponding.