Lenders don’t require “cosmetic perfection”—they require a home to meet minimum property standards so it’s safe, structurally sound, and marketable as collateral for the loan. The exact requirements depend on the loan type (conventional vs. FHA/VA/USDA), but these are the most common repairs that must be completed before closing:

1. Health & Safety Hazards

Anything that poses an immediate risk must be corrected.

• Exposed wiring
• Missing handrails on stairs
• Broken windows or sharp hazards
• Mold, mildew, or environmental concerns

2. Roof Issues

• Active leaks must be repaired
• Roof typically must have remaining life (often 2–5+ years depending on loan)
• Missing shingles or major wear may require repair or replacement

3. Electrical System Deficiencies

• Non-functioning outlets or fixtures
• Unsafe or outdated panels (e.g., exposed or damaged)
• Improper wiring (especially flagged in appraisal or inspection)

4. Plumbing Problems

• Leaks (active or significant past damage)
• Non-working toilets, sinks, or showers
• Lack of potable running water

5. Heating System (and sometimes Cooling)

• Must have a permanently installed, functioning heat source
• Space heaters alone usually do not qualify
• HVAC must be operational (especially for FHA/VA)

6. Structural Issues

• Foundation cracks or movement
• Sagging floors or rooflines
• Evidence of major structural instability

7. Water Intrusion & Drainage Issues

• Standing water in crawlspaces or basements
• Poor drainage affecting the foundation
• Signs of ongoing moisture intrusion

8. Pest or Termite Damage

• Active infestation must be treated
• Structural damage from pests must be repaired
• Termite clearance often required (especially FHA/VA)

9. Peeling Paint (Pre-1978 Homes)

• Required for loans like FHA/VA due to lead-based paint risk
• Must be scraped and repainted properly

10. Access & Egress Issues

• Property must have safe, legal access (no unsafe roads or blocked entry)
• Bedrooms typically require proper egress (windows/doors)

11. Missing or Non-Functional Fixtures

• Built-in appliances (if included in sale) must work
• Missing fixtures (like sinks, toilets, or major systems) must be installed

12. Safety Equipment

• Smoke detectors (and sometimes CO detectors) must be installed and functional
• Required in most loan types and jurisdictions

13. Broken or Missing Components

• Missing flooring exposing subfloor
• Damaged doors or unsecured openings
• Incomplete construction or unfinished areas affecting livability

14. Septic or Well Issues (if applicable)

• Must be functional and often tested
• Contamination or failure must be resolved

15. Appraiser-Required Repairs

• The appraiser may call out specific issues that must be fixed for the loan to proceed
• These can vary widely based on property condition