Appraisal and Home Repair Questions, Answered

Can repairs or missing appliances fail an appraisal?

Repairs can hold up a loan when they affect safety, soundness, or structural integrity. A missing appliance usually matters less, but the rules differ by loan program and lender.

Conventional: Fannie Mae allows as-is appraisals for minor conditions. Problems serious enough to earn a C6 condition rating must be fixed first.

FHA: Appliances that stay and add to the value must work. The lender can approve the property only after reported defects are corrected.

VA: Appraisals are made subject to repairs needed to meet minimum property requirements, meaning safe, structurally sound, and sanitary. Appraisers should not call for cosmetic repairs or minor wear items, and they do not test appliances. Air conditioning is not required, but if installed it must work.

Sources: Property Condition and Quality of Construction, B4-1.3-06, Fannie Mae Selling Guide; FHA Single Family Housing Policy Handbook 4000.1, HUD; VA Pamphlet 26-7 Chapter 12, Minimum Property Requirements, VA

What happens if the appraisal comes in low?

Usually, the loan is based on the lower of the price or the appraised value, so you have a gap to solve. Your usual options are to renegotiate the price, cover the difference with your own funds, ask for a reconsideration of value, or walk away if your contract allows it.

Government loans add protection. VA requires an escape clause, so you can leave the deal without losing earnest money if VA's value is below the contract price. FHA uses an amendatory clause when the buyer did not receive the appraised value before signing, and that clause lets you out without forfeiting earnest money if the value falls short.

On conventional loans, your exit depends on your contract, so read your appraisal contingency closely.

Sources: Loan-to-Value (LTV) Ratios, B2-1.2-01, Fannie Mae Selling Guide; VA Escape Clause, VA Home Loans; VA Home Loan Guaranty Buyer's Guide, VA; FHA Single Family Housing Policy Handbook 4000.1, HUD

Is an appraisal the same as a home inspection?

No. An appraisal estimates the home's value for the lender, and a home inspection looks closely at the home's condition for you.

An inspection only happens if you arrange one. FHA does not perform home inspections and tells buyers that an appraisal does not replace one. VA says the same, and its appraisers do not perform operational checks of mechanical systems or appliances, though they must note readily apparent repairs.

A qualified inspector evaluates the home's physical condition, estimates how much life the major systems have left, and identifies items that need repair or replacement. If you request an inspection early, you may be able to make your purchase contract contingent on the results. Lenders do not always require one, but they do usually require an appraisal or another valuation.

Sources: For Your Protection: Get a Home Inspection, HUD; VA Pamphlet 26-7 Chapter 12, Minimum Property Requirements, VA; VA Home Loan Guaranty Buyer's Guide, VA; Should I Waive the Home Inspection?, My Home by Freddie Mac

Can I get a copy of my appraisal?

Yes. On a loan secured by a first lien on a home, federal rules generally require the lender to give you a copy of appraisals and other written valuations at no charge for the copy.

You must get it promptly when it is completed or three business days before closing, whichever comes first. You can agree to get it later, but you still get it at or before closing. That waiver generally must be made at least three business days ahead.

The lender must also tell you about this right in writing within three business days of your application. The lender may still charge a reasonable fee for the appraisal itself. The timing rules also apply if your application is denied or withdrawn.

Source: Regulation B, 1002.14, Rules on providing appraisals and other valuations, CFPB

Who chooses the appraiser?

The lender usually does, and you generally do not. Fannie Mae makes lenders responsible for selecting appraisers and does not let them use appraisals ordered by borrowers.

For FHA loans, the lender orders the appraisal from an appraiser on the FHA roster, and it may not let a mortgage broker select the appraiser. For VA loans, your lender requests the appraisal, but VA assigns a fee panel appraiser. VA fee appraisers are not employees of VA, your lender, or your real estate agent.

Federal rules also bar lenders, mortgage brokers, real estate agents, and others from pressuring an appraiser toward a certain value. They can still ask the appraiser to consider more property information, give more support for the value, or fix errors.

Sources: Appraiser Selection Criteria, B4-1.1-03, Fannie Mae Selling Guide; FHA Single Family Housing Policy Handbook 4000.1, HUD; VA Pamphlet 26-7 Chapter 12, Minimum Property Requirements, VA; VA Home Loan Guaranty Buyer's Guide, VA; Regulation Z, 1026.42, Valuation independence, CFPB

Can I ask for a second look if the appraisal seems wrong?

Yes, usually through your lender and with facts. The rules changed recently and differ by loan type.

Fannie Mae loans: You can make one borrower-initiated request per appraisal, before closing. Point out what is wrong and include up to five comparable sales with their data sources. Your lender reviews it first.

FHA loans: In 2025, HUD rescinded the borrower-initiated process it had added in 2024. Under the current handbook, the underwriter may request a reconsideration when the appraiser missed relevant information.

VA loans: You can request a reconsideration of value through your lender or agent with valid sales data. VA staff review it.

Federal rules let parties ask an appraiser to consider more property information or fix errors, but not to hit a target value.

Sources: Appraisal Quality Matters, B4-1.3-12, Fannie Mae Selling Guide; Appraiser Update, September 2025, Fannie Mae; Mortgagee Letter 2025-08, HUD; FHA Single Family Housing Policy Handbook 4000.1, HUD; VA Home Loan Guaranty Buyer's Guide, VA; Regulation Z, 1026.42, Valuation independence, CFPB