Kyle Turpin
Supreme Lending · Sr. Loan OfficerNMLS #1506791
Home Financing
Start with a lender who can explain the full picture.
Loan choice affects cash needed, monthly payment, timing, and which property conditions may need attention before closing. Hannah’s preferred lenders can help compare the options.
Trusted lending partners
Get pre-approved before the search gets serious.
A preapproval should give you more than a price ceiling. Ask about cash-to-close, payment scenarios, program requirements, appraisal timing, and how quickly the lender can communicate during an offer.
Alex Turner
InterLinc Mortgage · KHC CertifiedNMLS #1768714
Dennie Dowell
Northpointe Bank · VA and KHC CertifiedNMLS #616027
Property pre-check
Will It Pass?
Use these tabs to spot conditions that commonly delay an appraisal or require another review. This is a preparation guide, not a pass/fail promise. The appraiser observes readily apparent conditions; the lender makes the final eligibility decision.
VA minimum property requirements
A VA appraisal checks value and whether the home appears safe, structurally sound, and sanitary. It does not replace a buyer’s private home inspection.
- Essential electrical, plumbing, water, sanitation, and heating systems must be available, functional, and safe to operate.
- The roof must protect the home from weather; active leaks or obvious failure can require repair.
- Foundation movement, serious settlement, rot, dampness, and structural deterioration must be resolved or evaluated.
- Access to the home and its living areas must be safe and adequate.
- Unsafe stairs, decks, porches, missing guards, or missing handrails may be called out when they create a readily observable hazard.
- Pre-1978 homes should be checked for defective paint on interior and exterior surfaces.
- Visible evidence of termites, wood-destroying insects, fungus, or dry rot can trigger treatment or further inspection.
- Private water and sewage systems must provide an acceptable, sanitary service and may require testing or documentation.
About the “19-inch rule”: VA guidance does not establish one universal 19-inch threshold for handrails. Stair and guard concerns depend on the actual hazard, applicable local code, and appraiser or lender judgment. Treat a missing or loose handrail as a likely pre-listing repair whenever a fall hazard is present.
USDA existing-home requirements
For an existing home, USDA Rural Development requires the property to meet HUD minimum property standards and be adequate, safe, and sanitary. The property must also be in an eligible rural area.
- The site must be in a USDA-eligible area and have dependable access from a road maintained to applicable standards.
- The dwelling must be primarily residential and suitable for year-round occupancy.
- Required utilities and mechanical systems must be present, functional, and free of obvious health or safety hazards.
- The structure, roof, foundation, and exterior should be free of conditions that threaten safety or continued marketability.
- Private wells require acceptable water-quality documentation; the test generally must be current at closing.
- Well and septic separation must meet HUD or the applicable state or local health-authority standard.
- Termite or pest inspection is required when the lender, appraiser, inspector, or state law calls for it.
- Repairs tied to health, safety, or continued marketability generally must be resolved before the loan can proceed.
The USDA appraisal is not the detailed home inspection. Buyers should still use a qualified inspector to evaluate the roof, foundation, electrical, plumbing, HVAC, drainage, appliances, and accessible structure.
Kentucky Housing Corporation loans
KHC is a housing-finance and assistance program, not a separate property-standard system. The underlying first mortgage may be conventional, FHA, VA, or RHS/USDA, and that program’s rules still apply.
- KHC requires a full appraisal for each loan, including KHC conventional loans; property-inspection waivers are not accepted.
- The home must be a one-unit primary residence in Kentucky and meet the eligibility rules for the selected first-mortgage product.
- Safety or livability repairs must be completed and inspected before closing.
- Some incomplete or weather-related items may be escrowed when KHC and the lender allow it.
- Manufactured homes require program-specific eligibility documents and conversion to real estate.
- For VA, USDA/RHS, or FHA financing through KHC, review that agency’s condition requirements rather than relying on the KHC tab alone.
Ask the lender two separate questions: “Which KHC assistance program fits me?” and “Which first-mortgage property standard will this house need to meet?”
Conventional appraisal concerns
Conventional financing usually does not use a single room-by-room repair checklist. The central question is whether a deficiency affects the home’s safety, soundness, structural integrity, value, or marketability.
- Active roof leaks, substantial roof failure, or water intrusion can make the appraisal subject to repair.
- Foundation settlement, major cracks, bowing walls, or other structural movement may require professional evaluation.
- Unsafe or inadequate electrical service and serious plumbing deficiencies may require correction.
- Infestation, dampness, mold indicators, or wood damage may require treatment or a qualified inspection.
- Major incomplete construction or renovation typically must be completed or addressed through an approved process.
- Normal wear and minor deferred maintenance may be accepted as-is when they do not affect safety, soundness, or structural integrity.
- A missing handrail can be treated as minor in one situation and as a safety issue in another; context and lender review matter.
- The appraiser reports observable deficiencies, while the lender decides whether repairs, documentation, or another inspection is required.
“Conventional” does not mean condition never matters. A home with major safety or structural deficiencies can still be ineligible until repaired.
Before the appraiser arrives
A practical seller and buyer pre-check.
Outside
- Repair active leaks and obvious rot
- Secure loose steps, handrails, guards, and decking
- Correct exposed wiring and unsafe exterior electrical items
- Address drainage that is visibly directing water into the structure
- Make crawl spaces, attics, utilities, and outbuildings accessible when applicable
Inside
- Confirm heat, water, plumbing, and electrical systems operate
- Repair broken fixtures that create safety or sanitation concerns
- Address active water intrusion, severe leaks, and visible structural damage
- Stabilize peeling paint on pre-1978 homes
- Gather permits, repair invoices, well/septic documents, and prior specialist reports
Make the loan fit the move
Compare the payment and the property rules.
Program eligibility, borrower qualifications, property type, appraisal results, and lender overlays can all change the answer. Confirm the final requirements with the lender handling the file.