Grace & Agape Real Estate Services, LLC


headache all the timeAvoiding FHA Appraisal Inspection Repair Requirement Headaches 

Many homebuyers who are unable to afford down payments for conventional loans use FHA loans.  That’s great news for Buyers but can result in major headaches for Sellers unaware of FHA appraisal requirements.

After all the hard work of negotiating a win/win deal to sell your home—it’s not a sure thing until all appraisal/inspection conditional requirements are fully satisfied.

Getting notified there are several items in need of repair before the sale can go through can certainly be an unexpected migraine waiting for those unaware of FHA appraisal requirements when they originally listed their home for sale. Especially if they’ve already agreed to drop thousands off the list price and/or agreed to help pay the buyer’s closing costs as the appraisal comes after the purchase agreement is fully executed.

Sellers can choose the type of financing they will accept but must also realize they will limit their pool of qualified buyer prospects by removing financing options available.

Here is a list of the most common FHA repairs Sellers should consider addressing BEFORE listing their home on the market if their plans include offering FHA loan financing options: 

  • If the home was built prior to 1978, chipping, peeling paint must be scraped and painted. This includes interior, exterior, garages, sheds, fences, etc.
  • Roof should have 2-3 years of useful life remaining and no more than 2 layers of shingles. If the home is over 10 years old, you must remove snow from a large portion of the roof for inspection by the appraiser.
  • The cause of wet basements should be cured (e.g., improve drainage away from house, gutters, etc.).
  • Abandoned inoperable wells must be capped and sealed by a licensed well sealing contractor.
  • Infestation of any kind should be exterminated (e.g., insects, mice, bats, etc.).
  • Damaged or inoperable plumbing, electric and heating systems should be repaired. The appraiser will check these areas.
  • Structural or foundation problems must be repaired.
  • Flammable storage tanks must be removed and filler cap sealed from the inside (e.g., buried oil tank).
  • If there is a crawl space or attic, it will be the homeowner’s responsibility to make this area accessible so that it can be thoroughly inspected.

To learn more about FHA appraisal repair requirements contact a local mortgage lender who specializes in FHA loans. 

Ryan Hakes is a licensed real estate practitioner serving the Indianapolis, Indiana area and surrounding counties, a member of the following professional organizations: Metropolitan Indianapolis Board of Realtors (MIBOR), National Association of Realtors (NAR), Indiana Association of Realtors (IAR), Broker Listing Cooperative (BLC) and is extremely passionate about helping clients accomplish the vision they have for their personal real estate goals & dreams.


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