What are the FHA property appraisal requirements for electrical service?

The Appraiser must notify the mortgagee if the electrical system is not adequate to support the typical functions performed in the dwelling without disruption, including appliances adequate for the type and size of the dwelling.  

The Appraiser must examine the electrical system to ensure that there is no visible frayed wiring or exposed wires in the dwelling, including garage and basement areas, and report if the amperage and panel size appears inadequate for the property.

The Appraiser must operate a sample of switches, lighting fixtures, and receptacles inside the house and garage, and on the exterior walls, and report any deficiencies.

The Appraiser is not required to insert any tool, probe or testing device inside the electrical panel or to dismantle any electrical device or control. 

Electrical certification may be required when the Appraiser cannot determine if the system is working properly. 

For additional information see Handbook 4000.1 II.D.3.g.ii 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-03909