FHA Home Loan Appraisals - Electrical and Heating

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.

Electrical and Heating:  

The FHA appraiser should examine the electrical box to ensure that there are no frayed or exposed wires.  Electrical boxes may be either circuit breakers or fuses.  Existing 60-amp service is acceptable if it appears that this is adequate amperage for the appliances present in the property, or those considered "standard" if the present appliances appear to be less than found in the "standard" home.  Knob and tube wiring is acceptable if found to be in good condition and a minimum of 60-amps.  For all electric homes and those with electric heat, 200-amps is recommended 

In general, all habitable rooms must have a heat source.  This does not mean that each room must contain a heating device but that each room must receive sufficient heat.  In some situations where it is not feasible to extend the capacity of the main system, an electric and thermostatically controlled baseboard unit is acceptable provided it is permanently installed with concealed wiring.  

Heating must be adequate for healthful and comfortable living conditions.  This is defined as providing and maintaining a temperature of at least 50 degrees Fahrenheit in all living areas and areas containing plumbing systems.  Further more, all permanent primary heating systems must be thermostatically controlled and properties with electric heat sources must have an acceptable electric service that meets the general requirements of the local municipal standards.  

Wood stoves and solar systems:  Homes with wood burning stoves or solar systems as the primary heat source must have permanently installed conventional heating systems that can maintain at least 50 degrees Fahrenheit in all living areas and those containing plumbing systems.  These systems must be installed in accordance with the manufacturer's recommendations.

Wall heaters:  Wall heaters are acceptable as long as they are installed to code and designed to heat the size and layout of the entire house.  

Floor heaters:  Due to the inherit dangers of a floor heater, it is highly recommended that floor heaters in need of repair be replaced with another permanent heat source.  They are acceptable as long as they are properly functioning and meet current code. 

Non-conventional heating systems:  All non-conventional heating systems, such as space heaters and others, must comply with local jurisdictional guidelines.  Often these are not acceptable as the primary source of heat.

Finally, propane tanks must be a safe distance from the property.  Leased tanks are acceptable when not offered for sale.  Propane fired furnaces located in a crawl space area is not acceptable.

Electrical, plumbing and/or heating certifications may be called for by the appraiser when he/she cannot determine if one or all of these systems are working properly.  However, the appraiser should not arbitrarily call for such certifications as they are still responsible for checking on the adequacy of these systems at the time of appraisal.  If an inspection is required, it must be done by a home inspector, an inspector from the local building department, an FHA compliance inspector, a professional in the specific field (e.g. electrician, plumber) or any individual deemed qualified by the lender's underwriter.