Lender-Driven Repairs Guide

Most sellers know the appraisal is about confirming the home's value. What catches many by surprise is that the appraisal can also trigger required repairs — repairs that must be completed before the buyer's loan can close. This is especially common with FHA and VA loans.

Understanding how this works — and what your options are — helps you avoid last-minute surprises that can delay or derail a closing.

Why the Appraisal Triggers Repairs

When a buyer uses an FHA or VA loan, the appraisal is not just about value. The appraiser is also evaluating whether the property meets minimum property standards set by the lender. These standards exist to protect the buyer and the lender — the home needs to be safe, structurally sound, and livable.

If the appraiser identifies issues that fall below those standards, the lender will require the repairs to be completed before they will fund the loan. This is not optional and it is not negotiable with the lender. The repairs have to happen, or the loan does not close.

Common Repairs That Come Up

The types of issues appraisers flag are usually related to health, safety, or structural integrity. Common examples include:

• Peeling or chipping paint — especially on homes built before 1978, due to lead paint concerns
• Missing handrails on stairs or elevated areas
• Broken or cracked windows
• Roof issues — missing shingles, active leaks, or signs of significant wear
• Electrical problems — exposed wiring, non-functional outlets, or missing cover plates
• Water damage or evidence of active leaks
• Non-functional HVAC systems
• Tripping hazards or structural concerns

Your Options as the Seller

When lender-required repairs come up, you generally have three paths:

• Complete the repairs. This is the most common approach. Get the work done, have the appraiser verify it, and move forward with closing. For smaller items like handrails or paint touch-ups, this is usually quick and inexpensive.
• Offer a credit or price adjustment. In some cases, you may be able to negotiate a credit to the buyer at closing to cover the cost of repairs they complete after closing. However, this does not always work with lender-required repairs — the lender may still require the work to be done before funding.
• Walk away. If the repairs are extensive and the cost does not make sense, you have the option to decline and terminate the contract. This is rare but it is worth knowing you have the choice.

Buyers Cannot Waive These

This is important to understand: lender-required repairs are not the buyer's call. Even if the buyer is willing to accept the home as-is, the lender will not fund the loan until the property meets their standards. The buyer cannot waive lender requirements the way they might waive an inspection item. If the lender says it needs to be fixed, it needs to be fixed.

Know the Buyer's Loan Type Early

One of the smartest things you can do as a seller is find out what type of loan your buyer is using as early as possible. If you know an FHA or VA buyer is making an offer, you can anticipate stricter appraisal requirements and address obvious issues before they become a problem. A quick walk-through with an eye toward safety and maintenance can save you time and stress later in the process.

Address Issues Early

If you know there are visible issues with your property — peeling paint, a missing handrail, a window with a crack — consider taking care of them before the home goes on the market. These are usually inexpensive fixes, and handling them proactively removes a potential obstacle from every offer you receive, not just FHA and VA buyers.

Bottom Line

Lender-driven repairs are a normal part of the selling process, especially with FHA and VA loans. They are not a surprise tactic or a negotiation tool — they are a lender requirement that protects everyone involved. Know what to expect, take care of obvious issues early, and you will be in a much better position when the appraisal comes back.