FHA | VA | USDA Financing: Potential Appraisal Repairs

If you are selling a home in today's market, there is a very strong chance that the buyer is going to be using either FHA, VA, or USDA Rural Development financing. While they are all different, they have one thing in common and that is meeting HUD/Fannie Mae guidelines on condition. The appraiser will at the value of the home and will use those guidelines to determine any repairs that are required. Don't worry, this sounds scarier than it actually is! Below you will find the most common repairs required for the appraisal to be satisfactory. Typically, a homeowner can complete these items on their own for a low cost. 

Most Common Appraisal Repair Requirements

• Peeling Paint- This is the number one required repair because most homes have it somewhere. Take a close look inside and outside of your home especially around windows, doors, soffits, & fascia. If you have peeling paint, simply scrape it down & clean up the debris, and repaint the area. It's as simple as that! 
• Handrails- This is one of the most frequently required repairs, check the stairs to the upper level, basement, and any exterior areas that may need them. 
• Smoke/CO Detectors- This is a requirement for both the State of Illinois and for the appraisal. Make sure that you have them, per code, and that they are all functional. The official Illinois Smoke Detector codes can be found here: Link. The official Illinois CO Detector codes can be found here: Link. 
• Broken Glass- Cracked or broken window & door glass panes are also a common repair, be sure to check all of the glass surfaces in your home to make sure they are free from cracks & are not broken. 
• Hot Water Heater Pressure Relief Valve Extension- Another very common item is an extension on your hot water heater's relief valve. Here is a link to a website that talks about requirements for the extension and common issues found with them. Click here.
• GFCI Outlets- This is in the top 3 for most common required repairs. These need to be installed around all area with water sources & area that could potentially become wet i.e. exterior or garage outlets. Click here to find out more about the requirements of GFCI outlets. 

While these are the most common, the items listed are not a guaranteed list of what the appraiser will require to be repaired. There could be more and there could be less, it just depends on the appraiser's interpretation of the guidelines and the current condition of your home. The best advice is to be proactive and to at least take care of all of these items if they are applicable to your home, and try not to worry! There are many misconceptions out on the web that these financing types are very strict and tough to deal with, and that is not the case. In the end, they want to ensure the home is habitable and safe for the new homeowner. 

Thanks for reading, and as always feel free to call with any questions or concerns! 

Nick Schauble, The Schauble Team, Keller Williams Premier Realty 

309-226-3223