What Are Bank-Required Repairs?

When purchasing a home, potential buyers may apply for lending (mortgage) from various banks. In order to verify the loan, banks will require different levels of inspections in accordance with the type of loan. For instance, if the buyer is taking out a conventional loan, only major structural issues — falling roof, foundational cracks, etc. — may be required. On the other hand, FHA loans will require far more minor repairs to be addressed: exposed wiring, paint, broken gutters. 

In addition, it’s always best to consult your local municipality as there may be specific Use and Occupancy requirements such as chimney or sewer scope. No doubt, your real estate agent should be familiar with the local township and necessary requirements to help guide you through the process. 

Considerations: Article has been modified and adapted from Nerdwallet.com, Rocket Mortgage, Zillow, and Investopedia.