Many buyers fall in love with a home only to discover it needs repairs before closing. Whether you can still purchase the home depends on the type of loan and the condition of the property.
When Repairs May Be Required Before Closing
Some repairs must be completed before a lender will allow the loan to close. Common examples include:
- Roof leaks or significant roof damage
- Missing handrails or safety hazards
- Peeling paint on homes built before 1978 (FHA/VA)
- Electrical or plumbing problems affecting the home’s safety
- Structural issues
- Broken heating systems during cold weather
- Conditions that make the home unsafe or unlivable
Does Every Repair Have to Be Completed?
No.
Cosmetic issues such as worn carpet, outdated paint colors, scratched flooring, or older cabinets usually do not prevent a loan from closing.
The concern is whether the property meets the lender’s minimum property requirements for safety, security, and structural soundness.
What Are My Options?
If repairs are required, several solutions may be available:
- The seller completes the repairs before closing.
- The buyer and seller negotiate who will pay for the repairs.
- In some cases, a renovation loan such as an FHA 203(k) may allow repairs to be financed as part of the mortgage.
- If the repairs are extensive and cannot be resolved, the transaction may need to be delayed or canceled.
My Advice
If you’re considering a home that needs repairs, don’t assume the deal is over. Every situation is different, and many issues can be resolved with the right planning. Talk with your lender early so you understand your options before moving forward.