Is the condition of my home part of the qualification process?

Since the amount of loan proceeds available to you is dependent on the appraised value of the home, the condition of the home is a consideration.  Your FHA-approved appraiser also reviews the property for safety and security.  Frequently homeowners have a bit of deferred maintenance on the home.  Typically, required repairs can be paid for from loan proceeds within one year after funding of the loan.  But if so desired, you may even want to make additional improvements to the home to make it safe and secure for your long-term happiness.