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. For FHA appraisals, how must an appraiser handle a property where the bedroom lacks a window to the exterior? → Cite it as an MPR deficiency because bedrooms must have egress windows
2. What factors should appraisers consider when evaluating comparable property sales? → The size and location of the property, as well as its condition and age.
3. 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
4. A property has a potential gross income of $60,000, a vacancy and collection loss of 8%, and operating expenses of $22,000. What is the NOI? → $33,200
5. When prioritizing assignments in a large FHA portfolio, which factor should take precedence for scheduling? → Contractual deadlines and lender-specified effective dates
6. What is the relationship between local economic conditions and property values? → Stronger local economies generally lead to higher property values.
7. 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
8. How do economic factors impact property valuation? → Economic factors can affect demand and pricing in the market.
9. When using the income capitalization approach for a single-family residence, what is the most common method FHA appraisers use to estimate market rent? → Gross rent multiplier analysis
10. Which of the following best describes the concept of 'bias' as it relates to appraisal ethics? → A preference that influences an appraiser's analysis to reach a predetermined conclusion
11. Which financial statement provides the best view of an organization's profitability? → The income statement showing revenues, expenses, and net profit
12. Which party is responsible for selecting and engaging an FHA-approved appraiser under current HUD Appraiser Independence Requirements? → The lender or its approved AMC
13. How does an appraiser ensure fairness in their valuation process? → By using objective data and avoiding conflicts of interest.
14. Under FHA guidelines, what must an appraiser do when the subject property is located within a Special Flood Hazard Area (SFHA)? → Note the SFHA location and require flood insurance as a condition of the loan
15. 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
16. Which type of depreciation is considered incurable when the cost to cure exceeds the value added by curing the item? → Physical deterioration — incurable long-lived
17. 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
18. When appraising a property in a Special Flood Hazard Area (SFHA), what does FHA require the appraiser to note? → The flood zone designation and whether flood insurance is required
19. 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
20. What is the first step in the risk management process? → Identify potential risks through systematic analysis
21. 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
22. An operating expense ratio (OER) of 52% for a rental property means: → 52 cents of every dollar of EGI is consumed by operating expenses
23. Which entity typically has authority to establish practice standards? → State licensing boards and professional regulatory bodies
24. The Scope of Work Rule in USPAP requires appraisers to determine the scope that is necessary to produce: → Credible assignment results given the intended use
25. A real estate agent pressures an FHA appraiser to 'make the deal work' or the agent will stop referring business. The correct appraiser response is to: → Ignore the request and complete the appraisal independently
26. How does market demand affect property valuation? → Higher market demand generally increases property value.
27. 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
28. When documenting a condominium unit for FHA purposes, which project-level document must the appraiser confirm exists and is current in HUD's system? → FHA project approval on the HUD-approved condo list (DELRAP or HRAP approval)
29. When must an FHA appraiser photograph the subject property? → For the front, rear, street scene, and all rooms and deficiencies
30. Under FHA guidelines, what is the appraiser's documentation obligation when a property is located in a FEMA-designated Special Flood Hazard Area (SFHA)? → Note the flood zone designation and confirm flood insurance is available or required