Clearing FHA and VA Minimum Property Requirement Repair Conditions
FHA and VA appraisals sometimes identify property condition issues that must be repaired before closing.
What Is This Condition?
- MPR conditions are noted in the FHA or VA appraisal when the appraiser identifies health, safety, or structural issues that must be corrected for the loan to close.
MPR conditions are noted in the FHA or VA appraisal when the appraiser identifies health, safety, or structural issues that must be corrected for the loan to close.
How to Clear This Condition
- 01Review appraiser MPR notes
- 02Identify required repairs
- 03Get contractor estimate
- 04Coordinate seller or buyer repair completion
- 05Order appraisal re-inspection (1004D)
Documents Required to Clear This Condition
- Contractor bid or invoice for required repairs
- Proof of repair completion (photos, contractor completion statement, permits if required)
- 1004D Appraisal Update/Completion Certificate from original appraiser
- Lender approval of repair escrow if repairs done after closing
How CTC Handles This Condition
MPR conditions are time-sensitive — every day spent waiting for repairs extends the closing timeline. CTC identifies MPR issues the day the appraisal arrives and immediately notifies the LO to begin repair coordination.
Frequently Asked Questions
What are the most common FHA MPR issues?
Peeling paint (especially pre-1978 homes), roof with under 3 years remaining life, inoperative mechanical systems, safety hazards, and broken windows or doors.
Who pays for MPR repairs?
FHA: typically negotiated between buyer and seller. VA: seller required to pay for appraiser-required repairs — the veteran cannot pay for these. Either party can pay negotiated repairs beyond VA requirements.
Can repairs be done after closing in an escrow?
Sometimes — some lenders allow a repair escrow for minor repairs. VA is stricter and prefers completion before closing. CTC identifies escrow availability with the specific lender.