The mortgagee must confirm that each living unit contains:
• a continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for all household uses;
• sanitary facilities and a safe method of sewage disposal. Every living unit must have at least one bathroom, which must include, at a minimum, a water closet, lavatory, and a bathtub or shower;
• adequate space for healthful and comfortable living conditions;
• heating adequate for healthful and comfortable living conditions;
• domestic hot water; and
• electricity adequate for lighting, cooking and for mechanical equipment used in the living unit.
The mortgagee must ensure that cabinets and built-in appliances that are considered real property are present and operational. FHA does not have a minimum size requirement for one- to four-family dwellings and Condominium Units (except that a manufactured home must have a minimum size of 400 square feet to qualify for FHA financing).
For additional information see Handbook 4000.1:II.A.3.a.ii(F) and II.D.3.c.vii(A) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh