Short answer
Often yes, but the appraisal looks hard at the heat. For FHA, the permanently installed heating system must automatically keep living areas at least 50 degrees, use a fuel that's easy to get locally, have market acceptance and run without someone tending it for long stretches. A stove you have to feed by hand may not meet that alone. Conventional appraisals focus on whether the heating is accepted in the local market.
What does FHA require for heat?
HUD Handbook 4000.1 tells the appraiser to check that the heating is adequate for healthful and comfortable living, whatever the fuel. It flags a problem if the permanently installed system doesn't:
- Automatically heat living areas, and areas with parts that could freeze, to at least 50 degrees Fahrenheit.
- Provide safe, healthful and comfortable heat.
- Use a fuel source that's readily available in the area.
- Have market acceptance locally.
- Run without human intervention for extended periods.
A wood stove as the only heat can struggle with the last point. A home with a furnace, boiler or heat pump plus a stove is usually a different story. Whether a pellet stove with an automatic feed meets the standard is up to the appraiser.
What about conventional loans?
Fannie Mae's appraisal rules (B4-1.3-05) ask the appraiser to address any market resistance tied to the adequacy of the heating, plumbing or electrical systems and its effect on value and marketability. How the local market views wood heat is the appraiser's call.
What should I check before I make an offer?
- Ask what heats the home and whether there's backup heat that runs on its own.
- Have your home inspector look at the stove, chimney and clearances.
- Tell your insurance agent about any wood or pellet stove when you get quotes.
- If the stove is the only heat, talk with your lender before the appraisal about whether a repair or added heat source may be needed.
What if the home needs a new heat source?
You may be able to finance it. A renovation loan, or an energy upgrade added to the mortgage, can pay for a heat pump or boiler; see adding energy upgrades to a mortgage and the NH home heating guide.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Heating and Cooling Systems
- Fannie Mae Selling Guide B4-1.3-05, Improvements Section of the Appraisal Report
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.