Getting Fannie Mae to fix a minor issue

6 Replies

Hello all:

So, my wife and I have just started escrow on a Fannie Mae home. We are finacing this purchase through FHA. Everything has been going well so far (The only hiccup so far has been the two week wait for Fannie Mae to get us the signed contract back so we could actually move forward)

Had the home inspection yesterday and the only issue in the house was we could not get the hot water to run. The home has a tank less water heater and the inspector could not get the unit to turn on. Our realtor said that will be an FHA issue that must be addressed. I understand Fannie Mae sells properties As Is and will not do any sort of repairs, but this is a minor issue and the only thing that will hold us back from getting FHA approval.

What are the chances we can get Fannie Mae to address this issue? Its not a major issue like a roof needing replacing. I will be more than happy to put the money up to fix it myself. I know there are options such as arepair escrow or the FHA 203k loan. Does anyone have any experience with Fannie Mae on getting them to fix a small issue such as this.

Hi Randy,

I would imagine you're going to have a hard time getting them to fix something like that. Typically they will only perform repairs for items that are considered "health and safety" issues, and not being able to take a hot shower isn't considered a "health" issue. :) 

It doesn't hurt to ask, and maybe tell them you'll have to cancel the contract because you won't be able to get the financing you need if it's not fixed. Just remember, Fannie is a government agency basically. While the government loves spending money they don't have, I think you're going to fight an uphill battle with this one.

Again, I would ask because the worst they can do is say no.

Best of luck!


A "repair escrow" is not for a 203k, it's for a regular FHA, and could be used if FNMA agrees. . Ask the listing agent for the easiest solution, as they handle the FNMA listings. A second inspection with a plumber who "gets it to work" May be the easiest, even though you are not allowed to "do any repairs" to the property before owning it.

Should Randy continue with the contract and let the bank decide if they require the hot water issue to be fixed before approving the loan?

We are continuing with the contract.  Home inspection came out great and the house appraised for $40000 more than what we are buying it for.  Our realtor has had experience with Fannie Mae and feels like we have a good chance of getting this  fixed.  If not,  I will pay for it through escrow once we know our loan will go through.  Not losing the chance of buying this house.

I bought a Homepath property 7 months ago. After seeing the appraisal report, the bank demanded for some repairs ($3000 worth) or they will not finance. Fannie Mae refused but extended my contract so I could find a different lender that offered Homepath loan. A week later, F.M. decided they would do the repair so I could close with the initial lender.

This was in December, maybe they needed to close quickly.

They know we are using FHA so since the water heater issue came out on the appraisal, is raised the likelihood of it getting fixed. Hoping for the best

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