What Lender-Required Repairs Commonly Show Up in Georgia Home Inspections

When buying or selling a home in Atlanta or the surrounding suburbs—Marietta, Smyrna, Roswell, Kennesaw, Sandy Springs—one phrase that often causes tension is “lender-required repairs.” If you’re financing your home purchase with an FHA, VA, or USDA loan, your lender isn’t just looking at your credit score and income. They also care about the condition of the property itself. That’s where the home inspection becomes more than just a buyer’s due diligence—it can directly impact whether the loan closes at all.

As a Certified Master Inspector serving the Atlanta metro area, I’ve seen countless deals where the bank or lender flagged issues after a home inspection. Some repairs are non-negotiable, while others depend on the specific loan program. Let’s break down the most common lender-required repairs in Georgia home inspections, why they matter, and how buyers and sellers can prepare for them.

Why Do Lenders Care About Repairs?

Lenders don’t want to finance a property that could present a safety risk or lose value quickly. Programs like FHA, VA, and USDA are particularly strict because they’re designed to protect homebuyers who may not have large down payments or reserves for costly repairs.

While conventional loans may allow more flexibility, certain issues—especially safety hazards and structural concerns—will almost always need to be addressed before the deal closes.

Think of it this way: the lender is your financial partner in the home, and they want assurance that the property is livable, safe, and sound.

The Most Common Lender-Required Repairs in Georgia

Based on years of inspections across Atlanta and surrounding suburbs, here are the issues that most often trigger lender-required repairs:

1.

Roofing Problems

• Missing shingles, damaged flashing, or roofs near the end of their life often raise red flags.

• Lenders want assurance that the roof can protect the home from leaks and water intrusion.

• FHA guidelines, for example, require the roof to have at least two years of remaining life.

2.

Peeling or Chipped Paint (Pre-1978 Homes)

• Homes built before 1978 must comply with federal lead paint regulations.

• Any peeling, chipping, or deteriorated paint must be scraped, repainted, and sealed.

• This is one of the most common issues I flag in older Marietta and Decatur homes.

3.

Wood Rot and Termite Damage

• Rotten wood around windows, doors, siding, or decks is a lender dealbreaker.

• Active termite infestations or structural wood damage almost always require repair and reinspection.

• In Georgia’s humid climate, this issue comes up frequently.

4.

Electrical Hazards

• Missing outlet covers, double-tapped breakers, exposed wiring, or unsafe panels are red flags.

• Lenders want assurance the home is electrically safe for occupancy.

• GFCI outlets in kitchens, bathrooms, basements, and exteriors are a common repair requirement.

5.

Plumbing Leaks and Water Damage

• Active leaks, slow drains, or damaged water heaters often need correction.

• Stains or soft spots on ceilings and floors suggest prior or ongoing water intrusion.

• FHA inspectors pay close attention to the plumbing system’s functionality and safety.

6.

Heating and Cooling Systems

• Homes must have a permanently installed, functional heating system.

• Portable space heaters don’t qualify.

• If the AC isn’t working during a hot Georgia summer inspection, lenders may require it to be repaired.

7.

Foundation and Structural Issues

• Significant cracks, moisture intrusion, or shifting foundations can be deal-stoppers.

• FHA/VA loans will not approve a home with unresolved structural concerns.

8.

Safety Concerns

• Missing handrails, broken steps, unsecured decks, or blocked egress windows are all lender concerns.

• Homes must provide safe access and exit in case of emergencies.

How Sellers Can Prepare for Lender-Required Repairs

If you’re selling a home in Atlanta, it’s wise to get ahead of these issues. Consider a pre-listing inspection to uncover potential lender-required repairs before buyers come in. Fixing peeling paint, replacing missing outlet covers, and addressing roof leaks early can save you from delays later.

How Buyers Can Navigate Lender-Required Repairs

As a buyer, understand that if you’re using FHA, VA, or USDA financing, you may not have much choice about these repairs. Here’s what you can do:

• Build repair expectations into negotiations. Ask the seller to address known issues.

• Use a HUD 203(k) loan if you’re buying a fixer-upper. This program rolls repair costs into your mortgage.

• Work with a qualified home inspector who understands Georgia lender requirements and can identify issues upfront.

Local Example: A Marietta FHA Deal That Almost Fell Apart

Recently, I inspected a 1965 ranch home in Marietta. The buyer was using an FHA loan. The inspection revealed peeling paint around the exterior windows, exposed wiring in the attic, and wood rot on the deck stairs. Initially, the seller resisted repairs, thinking the issues were minor. But once the FHA appraiser flagged the same items, the seller had no choice but to address them. After a quick round of repairs and reinspection, the deal went through. Without those corrections, the financing would have been denied.

FAQs About Lender-Required Repairs in Georgia

Q: Do conventional loans require repairs after a home inspection?

A: Sometimes. While conventional loans are more flexible than FHA or VA, major safety hazards, structural issues, or active leaks often still need correction before closing.

Q: What happens if the seller refuses to make lender-required repairs?

A: The loan may not be approved. Buyers can either negotiate further, switch to a renovation loan, or walk away.

Q: Who pays for lender-required repairs in Georgia?

A: It depends on negotiations, but typically sellers cover them because buyers can’t close without the repairs.

Q: Can buyers do the repairs themselves before closing?

A: Usually not. Lenders require licensed contractors for certain types of repairs, especially structural, electrical, and roofing.

Q: How do I avoid surprises with lender-required repairs?

A: Hire a qualified Atlanta home inspector early in the process. Catching issues upfront helps you prepare for negotiations.

Final Thoughts

When it comes to lender-required repairs in Georgia home inspections, the key is preparation. These issues aren’t meant to complicate your real estate deal—they’re designed to protect both you and the lender from costly problems down the road.

If you’re buying or selling in Atlanta, Marietta, Roswell, or surrounding areas, a thorough inspection can make all the difference.

👉 Ready to schedule your home inspection? Contact Reynolds Home and Property Solutions today and get the expertise you need to navigate Georgia’s home buying process with confidence.