What Are Common Bank Required Repairs?

This question can be answered in a number of different ways since each type of loan has different requirements. First, let’s set a common foundation. Bank required repairs would be initiated by an appraiser whose job is to make sure the home is worth what the buyer is paying for it and that no repairs are required pursuant to the loan.

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For example, a VA loan has much stricter requirements than a conventional loan. A VA appraiser may see chipped paint and require the seller to fix it. They may require a handrail to be installed if steps inside or outside the home do not have a handrail. They could require a window to be replaced if it’s broken or a roof to be repaired. An FHA loan is also relatively strict when it comes to the condition of the home. If the home has major damage it is very unlikely a buyer could purchase with a VA or FHA loan.

Ultimately, the VA and FHA loans are stricter because the bank is loaning a higher percentage to the buyer. If a VA buyer is putting zero money down, it’s a bigger risk to the bank because 100% of the purchase price is being loaned. A conventional loan, on the other hand, may have a buyer putting 20% as a down payment meaning the bank is only loaning 80%, a safer bet for the bank. A conventional appraiser tends to be pretty relaxed and is unlikely to require any repairs as part of the loan process.

These bank required repairs can be situational. If you want an understanding of your home and what may or may not required, consult a real estate professional. We’d be glad to help you.