Does FHA Require Appliances for a Home Loan?

Obtaining a home loan can seem complex, with various requirements influencing approval. Federal Housing Administration (FHA) loans offer a pathway to homeownership for many individuals by providing mortgage insurance, which reduces the risk for lenders. This insurance makes it possible for lenders to offer more accessible terms, such as lower down payments and less stringent credit score requirements, compared to some conventional loan options.

No Mandatory Appliance Requirement

The FHA does not mandate that a home include specific freestanding appliances, such as refrigerators, washers, or dryers, for approval. The focus of FHA guidelines is on the safety and structural integrity of the property itself. These appliances are considered personal property rather than a permanent fixture of the home. Their presence or absence does not directly impact the FHA’s decision to insure a mortgage.

FHA Property Condition Guidelines

FHA loans require the property to meet health, safety, and structural standards, known as Minimum Property Requirements and Minimum Property Standards. An FHA-approved appraiser evaluates the home to ensure it complies with these guidelines set by the U.S. Department of Housing and Urban Development (HUD). This appraisal is distinct from a home inspection, as its purpose is to protect the lender and the FHA by confirming the property’s marketability and habitability.

The appraiser assesses the home to identify any conditions that could endanger occupants’ health or safety. This includes verifying that electrical systems are safe and adequate for household functions. Appraisers also check for a permanent, functional heating system and ensure plumbing systems are operational with hot water access. They examine the roof for structural integrity, look for proper drainage around the foundation, and check for the absence of lead-based paint hazards, especially in homes built before 1978.

When Appliances Matter for FHA Loans

While freestanding appliances are not an FHA requirement, built-in appliances can become relevant for approval. If an appliance is built-in, such as an oven, range, or dishwasher, it must be operational if it contributes to the property’s market value. A non-functional built-in appliance might signal a broader issue, like exposed wiring or a hole in the cabinetry, which could pose a health or safety hazard. In such cases, the FHA’s concern is addressing the hazard to ensure the home is safe and habitable, rather than requiring the appliance itself.

The presence or absence of appliances can influence the home’s appraised value, even if they are not mandated for approval. Appraisers note all appliances that remain with the property and contribute to the market value. This appraisal consideration is separate from the FHA’s pass/fail criteria for property condition. Standard FHA loans do not finance freestanding appliances, as these are considered personal property. For buyers interested in including appliances in their mortgage, an FHA 203(k) rehabilitation loan offers an option, as it allows for financing certain improvements, including appliances, as part of a larger renovation project.