FHA Cheat Sheet 2026

The 30 highest-yield FHA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What factors should appraisers consider when evaluating comparable property sales? → The size and location of the property, as well as its condition and age.
2. Under FHA guidelines, what is the minimum number of bedrooms required for a property to qualify for FHA financing? → There is no minimum bedroom requirement
3. What is the relationship between local economic conditions and property values? → Stronger local economies generally lead to higher property values.
4. Under FHA guidelines, when must an appraiser identify and flag defective paint in a pre-1978 home? → Whenever paint is peeling, chipping, flaking, or otherwise defective on any surface
5. How do economic factors impact property valuation? → Economic factors can affect demand and pricing in the market.
6. Which financial statement provides the best view of an organization's profitability? → The income statement showing revenues, expenses, and net profit
7. How does an appraiser ensure fairness in their valuation process? → By using objective data and avoiding conflicts of interest.
8. An FHA appraiser inspects a property near a high-voltage power transmission line. What must they consider? → Whether the proximity adversely affects safety, marketability, and value
9. Under FHA guidelines, when is the cost approach required to be developed in a residential appraisal? → When the property is new construction or has significant improvements
10. An FHA appraiser inspects a property and finds peeling paint on exterior surfaces of a home built in 1975. What is the required action? → Require repair or stabilization of all defective paint surfaces
11. What is the first step in the risk management process? → Identify potential risks through systematic analysis
12. What is the FHA appraiser's responsibility when they observe evidence of active termite infestation? → Require a certified pest control inspection and report before value can be supported
13. Which entity typically has authority to establish practice standards? → State licensing boards and professional regulatory bodies
14. How does market demand affect property valuation? → Higher market demand generally increases property value.
15. An FHA appraiser notices standing water in the crawl space. What is the appropriate response? → Call it out as a repair requirement and note the potential for moisture-related damage
16. What role does market analysis play in property valuation? → It helps understand market conditions and potential impacts on property value
17. Which factor is most important when evaluating market trends? → The sustainability and direction of the trend over time
18. How does maintaining proper credentials demonstrate regulatory compliance? → It proves the practitioner has met all requirements for legal practice
19. Which of the following is a prohibited practice in FHA appraisal report writing? → Stating a value conclusion before completing the analysis to meet a predetermined value
20. What is the primary responsibility of an appraiser when performing a valuation? → To provide an unbiased, accurate estimate of market value.
21. For FHA appraisals, what is the appraiser required to report in the 'neighborhood' section of the URAR? → Land use, housing trends, price ranges, and marketing time for the neighborhood
22. How should a professional handle a client disagreement about recommendations? → Listen actively, explain the rationale, and document the client decision
23. Why is continuing education important for maintaining ethical practice? → It ensures practitioners stay current with evolving standards and best practices
24. What is the appropriate response to witnessing unethical conduct by a colleague? → Report the conduct through established channels and document observations
25. What is the maximum number of days an FHA appraisal is valid for new purchase transactions under HUD guidelines? → 365 days
26. In an FHA appraisal report, what must an appraiser disclose if they have appraised the subject property within the prior three years? → The prior service must be disclosed in the certification
27. Under FHA guidelines, what is the required minimum ceiling height for finished basement areas to be included in the gross living area (GLA)? → 7 feet
28. Why is property inspection important in the valuation process? → Property inspection helps identify issues that could impact the value.
29. How do inflationary trends affect property values? → Inflation can increase property values due to higher demand.
30. How can appraisers avoid conflicts of interest? → By disclosing conflicts of interest and remaining impartial.