FHA Property Condition Requirements: Minimum Standards Explained The Federal Housing Administration (FHA) has established certain property condition requirements that must be met for a property to be eligible for an FHA-insured loan. These minimum standards are put in place to ensure the safety and habitability of the property for the borrower. Understanding these requirements is essential for both buyers and sellers involved in an FHA loan transaction. Let's delve into the details to gain a better understanding of FHA property condition requirements.