Hi, I’m Travis Anderson, your local Twin Cities real estate expert. Today, I’m diving into the five most common issues we see during FHA appraisals. Whether you’re a homebuyer using an FHA loan or a seller preparing your property, understanding these pitfalls can save you time, money, and stress. Let’s get started!

1. Peeling Paint: The #1 FHA Appraisal Red Flag

One of the most frequent issues we encounter is peeling paint, especially on the exterior of homes—like around garage doors or service entrances. If your home was built before 1978, appraisers assume lead-based paint was used in the original materials. This isn’t just a cosmetic issue—it’s a safety concern.

What to do: Scrape off the peeling paint, clean up any loose chips, prime the bare wood, and apply a fresh coat of paint. Taking care of this upfront can prevent delays in the appraisal process.

2. Loose or Missing Handrails: A Fall Risk You Can’t Ignore

The second most common problem? Handrails—or the lack thereof. If you’re walking up or down stairs and the handrail wobbles, or worse, there’s no railing at all (like on an open basement staircase), the appraiser will flag it. Safety is a top priority for FHA loans.

What to do: Tighten loose handrails and install railings where needed. It’s a simple fix that ensures your home meets FHA standards and keeps everyone safe.

3. GFCI Outlets: Protecting Wet and Unfinished Spaces

Next up are those little push-button GFCI outlets near wet locations—like kitchens and bathrooms. Most modern homes in the Twin Cities have these, but recent rule changes now require them in exterior areas and unfinished spaces, such as garages. I often see garages missing this protection, and it’s an easy catch for appraisers.

What to do: Check your garage and outdoor outlets. If they’re not GFCI-protected, have an electrician update them. It’s a small upgrade with a big impact.

4. Trip Hazards: Watch Your Step

Trip hazards are another frequent callout. Think uneven sidewalks, a slightly-too-high front door step, or cracked concrete. These might seem minor, but they’re a safety issue that FHA appraisers won’t overlook.

What to do: Inspect your property for uneven surfaces or tricky steps. Leveling concrete or adding a small ramp can eliminate this problem before it’s flagged.

5. Attic Moisture: A Hidden (and Costly) Concern

Finally, while less common than the others, moisture in the attic is a big deal when it shows up. Unlike standard appraisals, FHA appraisers will pop open the attic cover, shine a flashlight, and look for mildew on the roof decking or insulation. If they spot it, you’re looking at a more expensive fix.

What to do: Homeowners, take a peek in your attic now and address any moisture issues. Buyers, make sure your home inspection catches this early—before the appraiser does.

Tips for FHA Buyers and Sellers

If you’re a homebuyer using an FHA loan, point these issues out to your realtor when touring properties—after reading this, you might know more than they do! For sellers, addressing these problems ahead of time is key. In the Twin Cities market, where we’re seeing just 15 showings per home sale (not always enough for multiple offers), you don’t want to limit your buyer pool by excluding FHA borrowers. A conventional buyer might be ideal, but as the market slows, keeping your home FHA-friendly can make all the difference.

Market Update: West St. Paul, Minnesota

Here’s a quick look at today’s market: In West St. Paul, a 3-bedroom, 2-bathroom home built in 1967, with 1,391 square feet, is listed at $330,000. That’s a solid snapshot of what’s available in the Twin Cities right now.

Final Thoughts

These five FHA appraisal issues—peeling paint, loose handrails, missing GFCI outlets, trip hazards, and attic moisture—are manageable if you know what to look for. Whether you’re buying or selling, getting ahead of them can streamline your real estate journey.

Have questions? Feel free to give me a call, shoot me a text, or drop a comment below. I’m Travis Anderson, your Twin Cities real estate expert, and I’m here to help. All my best to you and yours!