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title: “FHA vs Conventional Appraisal: Key Differences You Need to Know” ogImage: “/og/satori/fha-vs-conventional-appraisal-differences.png” description: “Understand the differences between FHA and conventional appraisals, inspection requirements, minimum property standards, and how appraisal results affect your loan approval.” pubDate: 2026-03-22 faqSchema:

• question: “Is an FHA appraisal different from a conventional appraisal?” answer: “Yes. FHA appraisals include a basic inspection for health and safety issues, while conventional appraisals focus solely on market value. FHA appraisals may require repairs before closing that conventional loans would not.”
• question: “What will fail an FHA appraisal?” answer: “Common FHA appraisal failures include peeling paint (in pre-1978 homes, lead paint risk), structural damage, roof issues, safety hazards, missing handrails, and non-functioning mechanical systems.”
• question: “How long is an FHA appraisal good for?” answer: “An FHA appraisal is valid for 120 days (4 months). This can be extended to 240 days with an appraisal update. Conventional appraisals are typically valid for 120 days as well.”
• question: “Can I use an FHA appraisal for a conventional loan?” answer: “No, FHA appraisals are assigned to a specific case number and cannot be transferred to conventional loans or between lenders. You would need a new appraisal.”---

Quick Answer

FHA appraisals are stricter than conventional appraisals because they include basic health and safety inspections in addition to determining market value. While conventional appraisals only assess value, FHA appraisals may require repairs for issues like peeling paint, missing handrails, or structural concerns before the loan can close.

Key Takeaways

• FHA appraisals include health/safety checks; conventional appraisals do not
• FHA may require repairs before closing that conventional would ignore
• FHA appraisals are valid for 120 days
• FHA appraisals cannot be transferred to conventional loans
• Conventional appraisals focus solely on market value

FHA vs Conventional Appraisal Requirements

Feature	FHA	Conventional
Market Value	Yes	Yes
Health/Safety Check	Yes	No
Repair Requirements	Possible	Rare
Validity Period	120 days	120 days
Transferable	No	Case by case
Cost	$400-$700	$400-$700

Common FHA Appraisal Required Repairs

FHA appraisers look for conditions that affect the safety, security, or soundness of the property:

• Peeling/chipping paint (pre-1978 homes — lead risk)
• Missing or broken handrails on stairs
• Roof leaks or less than 2 years remaining life
• Structural damage or foundation issues
• Non-functioning heating/electrical/plumbing systems
• Broken windows or damaged doors
• Safety hazards (exposed wiring, missing smoke detectors)

How to Prepare for an FHA Appraisal

If you are buying with an FHA loan, ask the seller to:

1. Fix any peeling or chipped paint (especially pre-1978 homes)
2. Ensure all handrails are secure and present
3. Verify all mechanical systems work properly
4. Install smoke and carbon monoxide detectors
5. Address any water damage or leaks
6. Clean and declutter to show the property’s best condition

When FHA Appraisal Requirements Work in Your Favor

If an FHA appraisal requires the seller to make repairs, you benefit from:

• A safer, better-maintained home
• Negotiation leverage (seller must fix issues to close)
• Known issues addressed before you move in

For buyers, this is actually an advantage of FHA loans. For sellers, it can make FHA offers less attractive — something to consider in competitive markets.

Appraisal and Your Loan Amount

Regardless of loan type, if the appraisal comes in below the purchase price:

• You must make up the difference in cash
• You can renegotiate the price with the seller
• You can walk away (with an appraisal contingency)

Use our FHA vs Conventional Calculator to model different scenarios, and check our conventional loan requirements guide for the full qualification picture.