What are the general acceptability criteria for properties to be insured with FHA loans?

To be eligible for FHA financing, a property must meet the Property Acceptability Criteria contained in Handbook 4000.1, which includes HUD’s Minimum Property Requirements (MPR) and Minimum Property Standards (MPS).

MPR refer to general requirements that all homes insured by FHA be safe, sound and secure.

MPS refer to regulatory requirements relating to the safety, soundness and security of new construction.

The criteria apply to residential properties containing one-to-four family housing units, individual condominium units, and manufactured housing units, and related property improvements and the sites on which they are located, as well as the immediate environment for the dwelling, including streets and other services or facilities associated with the site.

For additional information see Handbook 4000.1 II.A.3 and II.D. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03511