FHA and VA appraisal requirements kill more Georgia deals over fixable items than over value, and almost nobody sees it coming. The buyer is approved. The price is agreed. Then the appraisal comes back “subject to repairs” over peeling paint and a missing handrail, and suddenly a seller who never wanted an FHA offer feels vindicated for the wrong reason.
Here is the reframe, and it is the distinction that resolves most of the confusion. These appraisals do two separate jobs. One is establishing value, which is the same job every appraisal does. The other is verifying the property meets minimum condition standards for safety, soundness, and sanitation. A low value is a price negotiation. A condition failure is a repair list, and the two get conflated constantly by people who should know better.
Nicole France previously owned a mortgage company and has closed more than 600 transactions across Northwest Atlanta. Here are the eight conditions that most often stop these loans, and what both sides should do about them.
1. Peeling Paint on a Pre-1978 Home
This is the single most common condition on both programs, and it is entirely about lead.
Any peeling, chipping, or flaking paint on a home built before 1978 triggers a mandatory remediation requirement, on interior or exterior surfaces, walls, doors, ceilings, and window frames. The fix is stabilization: scraping loose paint, priming, and repainting using lead-safe practices, with the EPA’s Renovation, Repair, and Painting rule governing the work.
The same paint on a 1995 home is generally a cosmetic issue that does not need correcting. That is why the build year matters more than the paint does. Older housing stock in downtown Acworth, Cartersville, and parts of Woodstock is exactly where this shows up, and it is the easiest failure to prevent.
2. Missing or Loose Handrails
Described by one lender as probably the most common failure point, and among the cheapest to fix.
Any staircase with three or more steps, interior or exterior, must have a handrail. Loose, damaged, or missing rails at stairs and elevated surfaces all get flagged, along with broken steps.
Note that this one does not qualify for a waiver. It is a safety item, and safety items get corrected before the loan closes. A seller who spends an afternoon installing a rail on the deck steps has eliminated a condition that would otherwise delay closing by a week.
3. The Roof Does Not Have Enough Life Left
Roofing is cited repeatedly as the most common single source of conditions, and it is the most expensive item on this list.
Appraisers look for active leaks, missing or deteriorated shingles, damage visible from ground level or inside the attic, and evidence of prior leaks that were not properly repaired. FHA guidance commonly references a two-year minimum remaining life standard. Worth noting: at least one VA-focused source argues the frequently repeated “two to three years of remaining roof life” figure is not actually stated in the VA’s own requirements, while other sources cite it as a lender interpretation. Treat the specific number as a lender-by-lender question rather than a settled rule.
Either way, the practical response is the same. If the roof is marginal, getting a roofer’s letter estimating remaining useful life before the appraisal can prevent a condition from being written at all.
4. Electrical Hazards
Exposed or damaged wiring, junction boxes without covers, non-functional outlets, and overloaded panels all generate conditions.
The standard here is safety rather than modernity. An older panel that functions safely is different from exposed wiring in a crawlspace. The VA also expects electrical systems to be up to code, which is a somewhat higher bar than a conventional appraisal applies.
This is a category where a general home inspection ordered before the appraisal earns its cost several times over, because an inspector will find these items while there is still time to negotiate who fixes them.
5. Systems That Do Not Work, or Are Turned Off
Heating, plumbing, and hot water must be functional, and the appraiser has to be able to verify it.
A non-functional furnace, an inadequate heat source, broken fixtures, active leaks, or a water heater missing a proper pressure relief valve all generate conditions. So do broken windows and exterior doors that will not lock securely.
Here is the avoidable version of this failure: utilities turned off at the time of appraisal. Appraisers are increasingly strict about systems being operational, and a furnace the appraiser cannot test is a furnace that gets flagged. On a vacant home, confirm power, gas, and water are on before the appraisal is scheduled. This is a phone call, and it prevents a re-inspection fee and a week of delay.
6. Structural Problems and Wet Crawlspaces
Two categories that matter more in Georgia than in most states, for the same underlying reason.
Appraisers examine the foundation for significant cracks, settlement, or water infiltration, and evaluate whether the foundation is serviceable for the life of the loan. Crawlspaces and basements must be accessible and free of excessive moisture, standing water, and pest damage, with adequate ventilation. Soft floors indicating subfloor damage get flagged as well.
Georgia’s expansive red clay and humidity make both of these common. A crawlspace with standing water or a torn vapor barrier is a routine finding here, and it is exactly the kind of item that reads as ordinary to a longtime owner and as a condition to an appraiser. Access matters too: a crawlspace or attic the appraiser cannot enter can itself generate a condition, so clear the access points.
7. Wood-Destroying Insects
Georgia sits in a high-pressure termite region, which makes this more than a formality.
Active infestation, fungal damage, or dry rot in required inspection zones generate conditions. The VA requires a termite or wood-destroying insect report in states where infestation probability is moderate to heavy. FHA appraisers examine the foundation, attic, and walls for evidence and can require a full inspection from a licensed exterminator if they suspect activity.
Since a termite letter is conventional practice in Georgia transactions anyway, the practical advice is to have it in hand early rather than scrambling after an appraiser writes a condition.
8. No Legal Access, and the 2026 VA Changes
Access is the condition that most often cannot be fixed, which puts it in a different category from everything above.
The property must have legal road access via a public road or a permanent recorded easement. On acreage in North Paulding and Bartow, where shared driveways and unrecorded gravel roads are common, this is a real risk and a reason to confirm access during due diligence rather than at appraisal.
One important update: the VA issued Change 46 to VA Pamphlet 26-7, effective for appraisals ordered on or after May 1, 2026, which modified several MPR provisions in ways reported as beneficial to buyers, particularly on rural properties and on certain detached structure and post-1978 exterior paint issues. The rule that applies depends on when the appraisal was ordered, not when the inspection happens. If you are buying an older or rural property with a VA loan, ask your lender which version governs your file.
What Buyers and Sellers Need to Know
The most useful thing to understand is what these standards do not cover. Cosmetics are not MPR violations. Dated kitchens, worn carpet, ugly wallpaper, old countertops, and a lack of modern amenities do not fail an appraisal. The appraiser is asking whether the home is safe, sound, and sanitary, not whether it is attractive. Sellers who reject FHA and VA offers assuming their dated home will fail are usually wrong about what fails.
When a condition is written, there are three paths. The seller repairs it, which is most common. The buyer pays for it, sometimes with a credit negotiated elsewhere, which means paying to fix a house you do not own yet. Or in limited cases funds are held in escrow at closing for work completed afterward. Most conditions are fixable, but they cost time, and a roof certification or lead paint remediation can add one to three weeks to a closing.
The prevention is the same on both sides. Get a general home inspection before the appraisal, because an inspector finds what an appraiser will flag while there is still room to negotiate. Sellers listing an older home across Acworth, Kennesaw, Dallas, Cartersville, and Woodstock should walk the property with this list in hand: handrails, peeling paint on pre-1978 surfaces, crawlspace access and moisture, working systems, and secure windows and doors. Half of these cost a weekend and a trip to the hardware store.
Frequently Asked Questions
Should I refuse an FHA or VA offer because of the appraisal?
Usually not, and doing so narrows your buyer pool for the wrong reason. These appraisals enforce safety and habitability standards, not aesthetics, and most homes pass. In a market with rising inventory and longer market times, dismissing these buyers reflexively costs sellers more than the occasional repair condition does.
Who pays for repairs the appraiser requires?
It is negotiable. The seller most often handles them, since the work must be completed before the loan closes. A buyer can pay if the seller refuses, sometimes offset by a credit elsewhere, and in limited situations funds can be held in escrow for work completed after closing. Discuss the options with your lender before agreeing to anything, because escrow holdbacks have program-specific rules.
Is an FHA appraisal the same as a home inspection?
No, and this trips up buyers constantly. An appraiser checks a defined list of safety and soundness items and establishes value. A home inspector examines the condition of the house in far more depth and works for you. FHA does not require a separate inspection, and you should still get one. Passing an appraisal tells you the home met a minimum standard, not that it has no problems.
Buying or Selling With FHA or VA Financing?
Most of these conditions are preventable with one walkthrough and a few hundred dollars, and they are far cheaper to handle before the appraiser arrives than after. If you want an agent who flags them at the listing appointment, reach out.
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Listing an older home? Start with a home value estimate, or learn more about Nicole’s background.
Sources: the FHA on minimum property requirements, an overview of VA MPRs and the 2026 Change 46 update, and HUD Handbook 4000.1 property standards including lead paint protocols.
This post is general information, not lending or inspection advice. Nicole France is a REALTOR® and is not currently acting as a lender, appraiser, or inspector. Program requirements change, lender interpretations vary, and the VA updated its MPR guidance effective May 1, 2026. Confirm current requirements with your lender for your specific file.
Nicole France is a REALTOR® with RE/MAX Center serving buyers and sellers across Acworth, Kennesaw, Dallas, Cartersville, and Woodstock. Client Focused · Results Driven.