Is There a Minimum Square Footage Requirement for FHA Loans?

December 16, 2011

There are plenty of frequently asked questions about FHA home loans--some of them about FHA minimum standards (known as MPRs) for properties to be purchased with an FHA insured loan.

Many of the FHA MPRs address safety issues, structural integrity, even termites and other pests. When it comes to safety, the FHA rulebook says for example that a home can't be approved for an FHA insured loan if it's located near a "high voltage easement".

MPRs also require the home to be equipped with systems that can adequately serve the property for its size--all mechanical systems must be in working order and be at the proper capacity, period. Heating or central air conditioning systems that are too small to properly heat or cool the home won't pass muster with the FHA, and electrical systems must be powerful enough to serve the entire property.

FHA minimum property standards also include rules on how the property is designed- many buyers don't realize a home is not eligible for an FHA loan unless it has adequate, dedicated areas for sleeping and cooking--things most house hunters would take for granted. Any home not designed with such areas can't qualify for an FHA mortgage as-is.

With all these things in mind, it's no wonder some borrowers ask whether there is a minimum square footage requirement for a property to be eligible for an FHA home loan. The query is apparently so common that it's included in the FHA official site's list of frequently asked questions.

But the FHA does not require homes to have a specific minimum size-according to the FHA official site, the rules simply require "a home be marketable in the area and have adequate space necessary to assure suitable living, sleeping, cooking and dining accommodations and sanitary facilities."

There is one exception to the "no minimum square footage" issue-the FHA does require all manufactured homes to have a "minimum size of 400 square feet to qualify for FHA financing."

Insuring the property is marketable with these standards is another way of protecting both the lender and the buyer--should the owner wish to sell the property some day, these minimum VA standards insure the borrower won't have difficulty competing against similar homes for sale on the market under normal circumstances.