FHA Loans - Habitability Requisites

FHA loans come with a host of rules and regulations for buyers. Of course, they tend to be cheaper than private mortgages and offer other advantages if you qualify. One of the qualifications is that you live in the property and the property be "habitable;" this means it should be safe and have adequate infrastructure from the get go. Depending on your loan type, you will have different requirements.

Residency Requirements

FHA requires that you use the home as your primary residence. Those people looking for second homes, vacation homes or to use the property for an investment will not qualify based on residency requisites. Second and rental homes are typically financed through private mortgages.

Safe Dwelling Requirements

The property must have appliances, running water and be in generally good repair to qualify for a standard FHA, 203B loan. When you apply with your lender, these items will be assessed by an inspector to assure they meet the FHA requirements.

FHA also offers 203K loans, which allow a person to buy a property with the intent of refurbishing it, may have lower initial standards. However, the property must still be deemed safe in order to qualify for any type of FHA loan.