What is the FHA Rule for Heating and Cooling Systems?

Confused about the FHA Rule for Heating and Cooling Systems?

FHA Requirements For Heating and CoolingI’ve received a lot of calls recently regarding the FHA rule for heating and cooling systems. You may have wondered what FHA heat source requirements are or what is considered a permanent heat source. Does FHA require central heat and air? Today we’re going to look at what the FHA Single Family Housing Policy Handbooks says about this often confusing topic.

FHA heating and cooling system requirements

During an appraisal observation (when the appraiser visits your home, also known as the appraisal inspection) the appraiser will check out the heating and cooling system. The FHA handbook has no specific requirements regarding air conditioning other than it must work if it is present. However, there are detailed guidelines for the heating system.

Generally speaking, a heating system must provide for healthful and comfortable living conditions regardless of what type of system it is or what type of fuel it uses. It must also meet the safety, soundness, and security rule for FHA properties.

The heat source must meet the following guidelines:

1) It must heat all living areas to a minimum of 50 degrees- The heating system must heat all living areas to a minimum of 50 degrees Fahrenheit. In addition, it must also heat all non-living areas where there are building components that are subject to freezing or that would not function due to the low temperature.

2) It must provide healthful and comfortable heat- While this is somewhat vague just keep in mind that you would not want the heat source or fuel to produce some foul odor or fumes that would be unhealthy to be around.

3) It must be safe to operate- The health of the occupant must not be put at risk to operate the heat source. In addition, the safety of the home must not be jeopardized since it is the collateral for the loan.

4) The fuel source must be readily obtainable- If the fuel source is difficult to obtain then it might become difficult to maintain healthful and comfortable living conditions for the occupants. This would no doubt affect the ability to maintain a temperature that would protect critical system components and prevent items such as pipes from freezing.

5) The heating system must be acceptable to the local market- This guideline helps the subject property main marketability in case it is foreclosed on and needs to be sold. If the heating system is uncommon for the area and has limited appeal it would be difficult to sell which is not what the bank wants.

6) The heating system must operate without human intervention- Again, being able to operate without human intervention helps to maintain a constant and steady temperature to ensure healthy and comfortable living as well as protection from freezing. Having a wood burning fireplace or wood stove as the only heat source would not meet this guideline because it would be necessary to monitor the fuel and temperature.

7) The heating system must be permanently installed- Any heat source that could be easily removed does not qualify for several reasons. If the heat source can be easily removed it would probably be considered personal property, which cannot be included in an appraisal. If it can be removed it could negatively impact the value of the property in many ways including potential damage to components due to low temperature.

After speaking with a representative with HUD in one of their Home Ownership Centers (HOC) they suggested several options. In-wall heating units or baseboard heating would qualify as an alternative to a central system. If you have any FHA questions I highly recommend calling the HOC at (800) 225-5342.

Is central air conditioning necessary to meet FHA requirements?

Central air conditioning is not necessary to meet FHA heating and cooling system guidelines. The only rule that HUD has regarding central air is that if the house has it, it must work. The appraiser is required to note what is wrong with it and how the condition affects the home’s value and marketability in addition to the cost to repair it.

Do you have any other questions about FHA heating and cooling system requirements? If you have any questions feel free to contact me and as always thanks for reading.

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  1. Crystal Bowman says

    We live in the house we are wanting to purchase. We have been approved for an FHA. The appraisal is coming up. We have a propane fireplace that we have to light but turns on and off to regulate heat. The house is a very small 2 bedroom and the fireplace can keep it warm enough unless we get frigid temps. We are installing baseboard heaters just in case this won’t be enough, but we are wondering if it would be? It is in the living room. The house is all one floor and the bedroom doors are right off the living room.

    • If it is self-regulating and brings the temperature to the minimum requirement it should work. Your statement that it gets it warm unless you have frigid temps may disqualify it. It needs to provide a minimum temperature for the health and safety of the occupants and so that pipes don’t freeze.

  2. Rebecca Johnson says

    We have a home in NC that has a heat pump and it heats the home fine. They don’t use the cooling option as they us window units to cool the home. I am not finding the heat pump answer anywhere. thank you

  3. Dave casey says

    Is there an age requirement on furnaces. Basically can they be considered too old?

  4. Nancy Palmer says

    Are electric stoves like the amish stoves ok for fha heating fha loans…having trouble finding furnace quick for inspection & have to have heat! Help!!

  5. Hello, I just recently (less than 5 months ago) purchased a home and the appraiser stated he checked the heating elements of the home and they were in working condition we later have discovered the entire system and furnace is unable to be used due to its horrible condition , the gas was not connected connected during the time of the appraisal as he stated which means he could not have checked the water heater nor the furnace during his inspection as he stated. As the season is changing I’m receiving quotes of thousands of dollars to fix the matter, do I have any recourse in this matter?

    • You may have some recourse as that is an item the appraiser is required to check out unless doing so could damage the system. If the appraisal was done during the hot summer months the appraiser may have thought that turning it on could damage it. If this was the case this probably should have been stated in the appraisal report. Home inspectors also do a more thorough check with the mechanical systems so you may want to check that out if you got a home inspection.

  6. We are buying our house it has central air but the unit is old will lt pass fha

  7. I have been FHA approved for a home loan. I live in Florida and the mortgage broker and the realtor told me that FHA guidelines require that the home have vents and central heat and air. Alot of the homes in my price range have window units
    Just asking is this true or could it be there insurance companies requirement?

    • FHA rules specifically state that a home must have a permanent heat source that is part of the real estate. This is to ensure that plumbing pipes don’t freeze. I know you live in Florida but that is what FHA guidelines show. They do not have requirements for air conditioning. If you would like to feel more comfortable about getting the right answer you can always call the HUD HomeOwnership Center (HOC) at 1 (800) CALL FHA.

      • In the past there were Florida counties that were exempt from the heat source requirement. There is still mention of it on a FHA/HUD letter from 2012 in the hud.gov archives, however, it appears there is no mention of an exemption in the current 4000.1 handbook, is this exemption no longer valid? It seems silly to require a heat source in say, Key West, Florida that keeps temps above 50 degrees when it almost never reaches temps this low.

  8. Would individual wall mounted heaters that plug in meet the criteria for an FHA loan? The units will be permanently mounted. And I want to mount 1 in each room.

    • If they are permanently mounted and work without human intervention (unlike a fireplace that has to be constantly fed wood) and provide the minimum required temperature it should be okay.

  9. Terrina Birdsall says

    I have an addition with a room on the north side and one on the south side with a small hall and back door, presently not heated. Will a mini split unit permanently installed in the walls of both rooms get an FHA approval ? This obstacle is presently holding up our loan. Please reply

    Thank you

    • It will satisfy the heating a cooling issue. This area should also have a similar finish to the rest of the home so that it can considered gross living area.

  10. If the home has two sources of heat do they both have to be Functioning properly in order to Meet FHA standards?

    • Any system that the house has needs to be operating properly to meet FHA standards. If one of the systems is adequate then you can remove the one that does not work and everything should be okay.

  11. Kisha Owens-Hall says

    If I purchase a home and the home does not have central air can it be intalled using a rehab loan?

  12. Samantha Matson says

    Hi Tom,
    I am in the process of buying a house and it has forced air heat on the lower level but the upper level is heated from the old school vents in the floor using the heat that rises from the bottom floor. Is this acceptable for FHA guidelines? I am very worried this won’t pass.

    • I don’t know if I have ever seen this setup the way you describe it. Are there air ducts that feed into the vents or are the vents open from the ceiling of the rooms below it? My guess is that you would need to make sure that it will heat the upstairs to the minimum standard which is 50 degrees. Another thing to keep in mind is if this is common for the area. Hope this helps.

  13. Linda Birmingham says

    Does the heat have to be on both floors for FHA? This house has heat on 1st floor that comes up the staircases & a pellet stove on the 2nd floor.

    • I don’t think the pellet stove would qualify as it requires someone to feed the pellets. If the heat from the first-floor results in the upper levels meeting the minimum temperature requirements and the heating unit has the capacity to heat that much square footage then I think it should be okay.

  14. Hi Tom,
    Would electric baseboard heat in each room be acceptable in Michigan?

    Thank you for your time,

  15. maria de jesus garcia garcia says

    I am buying a house, the house was built in 1950, and they asking for a permanent heating, I live in San Antonio tx, do you know where can I get it.

    • One of the simplest forms of acceptable heating is baseboard heat. It is permanently installed along the baseboard and provides a constant source of heat. These can typically be found at big box home improvement stores like Lowes or Home Depot.

  16. Sebastion says

    Thanks for the post Tom. I recently had an appraisal done to a property I’m looking to purchase FHA loan and the appraiser stated on the report that the property has central air when in fact the property has no heating Appliance at all. I told my loan officer about it and she said the only way to fix it is to do another appraisal which will cost me more money. What are some options i can take here?

    • I think you may be able to just request a correction to the report and ask the appraiser to comment whether changing it to what is correct will affect their final value estimate. It may have just been a typo and they may have valued it without it.

  17. Great post Tom. Thanks for putting this together in one readily digestible format. I hate hunting through the handbook for issues like this.

  18. Thank you Tom. In my market, we sometimes see a pellet stove on a thermostat as a home’s primary heat source. I think it meets all of the above if the home is quite small. What do you think?

    • That’s a good question, Gary. I’ve never really seen that type of stove in my area but from what I understand it does have a thermostat feature which can regulate the temperature. It looks like that the fuel that it burns (compressed wood) is fed into the unit through a storage bin. My only concern would be how frequently you would need to restock the fuel bin. Do you know how frequently this must occur?

      • Some of the pellet stoves I’ve seen have a hopper feed. Start the stove and pellets drop in for the next week or two. Others I’ve seen don’t have that hopper feed and probably don’t meet the requirements above.

  19. Thanks for the post Tom. So could a cabin in a more rural area with only a wood burning stove meet FHA financing? On one hand it would because of #5, but then #6 seems to be the trump card for ruling that out. What say you?

    • You’re right, Ryan. While a wood-burning fireplace would be common and acceptable to the market it does not meet the other guideline that states that it must operate without human intervention. The fireplace cannot be the only source of heat in this situation, however, it can be a secondary source. The main system would need to operate without human intervention.

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