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Property Guide

What Repairs Are Required for FHA?

FHA does not finance homes that fail Minimum Property Requirements — the appraisal checks safety, soundness, and security, not just value. When issues show up, they must be corrected before closing or handled through an approved repair plan. Ryan and Steve coordinate with your agent and appraiser so repair conditions do not surprise you at the finish line.

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What FHA Looks For on the Appraisal

The appraiser verifies the home is livable and structurally sound — not move-in ready with a fresh coat of paint everywhere.

Safety, soundness, security

FHA's three pillars — the home must protect occupants, stand up structurally, and be secure from intrusion.

Roof and foundation

Active leaks, missing shingles, or structural movement typically require repair before the loan funds.

Utilities must work

Water, heat, electricity, and sewage must be on and functional at the time of inspection.

Access and egress

Bedrooms need proper exits; handrails, steps, and walkways must be safe.

Health hazards

Peeling paint on pre-1978 homes, mold, broken glass, and exposed wiring are common repair triggers.

Common FHA Required Repairs

These show up most often on FHA appraisal reports in Indiana and across the Midwest.

  • Peeling or chipping paint on homes built before 1978
  • Roof damage, missing shingles, or active leaks
  • Broken windows, missing handrails, or unsafe stairs
  • Non-functioning HVAC, water heater, or plumbing fixtures
  • Termite damage or active infestation when noted
  • Standing water, drainage issues, or failed septic systems

Before vs After Closing

Most FHA repair items must be completed before funding — but there are exceptions worth planning for early.

  • Safety and health items: usually fixed before closing
  • Seller credits: may cover repairs or a buyer credit at closing
  • Repair escrows: hold funds when post-closing work is allowed
  • Re-inspection: appraiser confirms completed work before release
  • 203(k) renovation: when the home needs more than spot repairs

How We Handle FHA Repair Conditions

Repair flags are common — a clear plan keeps your closing date intact.

Step 1

Review the appraisal

We read every condition the same day it hits so nothing waits.

Step 2

Price the fixes

Your agent gets bids or seller concessions lined up quickly.

Step 3

Confirm the path

Pre-closing repair, escrow holdback, or 203(k) — whichever fits.

Step 4

Clear for closing

Re-inspection and final sign-off before funds are released.

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

Who Qualifies for FHA Financing?

Property standards and qualification checklist beyond repairs.

Renovation Loans

When the home needs more work than standard FHA allows.

What Is an FHA Loan?

Program basics, down payment, and mortgage insurance.

FHA Loans Overview

Full FHA guide with calculator and property requirements.

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Frequently Asked Questions

Does FHA require all repairs to be done before closing?

Safety and health-related items must be corrected before closing. Minor cosmetic issues may be acceptable. Your appraiser and lender will list what must be fixed for the loan to fund.

Can the seller pay for FHA-required repairs?

Yes — sellers often complete repairs or offer a credit at closing. Negotiation is between buyer and seller; we help your agent structure the repair plan so the file stays on track.

What is an FHA repair escrow?

When allowed, a repair escrow holds funds at closing so work can be completed after you take title. Not every repair qualifies — we confirm whether escrow or pre-closing fixes are required for your file.

Will peeling paint fail an FHA appraisal?

On homes built before 1978, peeling or chipped paint is a lead-based paint concern and typically must be scraped, primed, and repainted before closing.

Buying FHA and Worried About Repair Conditions?

Ryan & Steve will walk through the appraisal report with you and your agent — so required repairs are scoped, priced, and cleared before closing day.

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