What is an acceptable form of heating and cooling for FHA appraisals?

HUD Appraisal RequirementsI get questions all the time from buyers, sellers, and agents, about FHA/HUD standards as it pertains to the appraisal and what may or may not qualify. The main principle, as I have written about in the past, pertains to health and safety issues. I am appraising a property now that uses a window unit air conditioner and space heaters as its main source of heating and cooling. The seller was worried that it may not qualify.

Besides the health and safety issues, FHA/HUD is concerned that everything operates correctly. As an FHA certified real estate appraiser I look at everything through their eyes. This is what HUD says about heating and cooling requirements:

Heating must be adequate for healthful and comfortable living conditions, and…

All non-conventional heating systems – space heaters and others – must comply with local jurisdictional guidelines.

And of course the units must be functioning and operational. If you have any other FHA/HUD questions I would be glad to help you, as it would be wise to catch the problems up front rather than on the back end of a loan, which could delay the closing.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.


  1. If you’re still monitoring this page, I’d love to get some advice. Just got an appraisal kicked back because one, of two, heating sources is a window unit. Rejected because it’s “not a fixture.” If you’re still looking at this, drop me a note at brandonjones@jonesgroupswf.com

    • Brandon, it sounds like that requirement may be a lender requirement rather than a Fannie Mae requirement. Is that type of heating source common in your area? Is the other heating source adequate to heat the entire residence? If it is common and adequate there may be no effect on value if you leave that heat source off or don’t give it value. Just food for thought.

    • I had the same issue once. It was “fixed” by getting the AC/heat pump window unit hard wired and therefore it wasn’t considered an “appliance”.

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