Lender Required Repairs on Conventional?

[Matt Brown]

We're currently under contract to purchase a property for $65k.  We're using a conventional loan on it so we're putting down 20%.  No issues so far.

The appraisal came back at $75k with a few "lender required repairs" listed such as flooring and mold/mildew.  Both of these things we've already planned on fixing and budgeted in our rehab.

Has anyone seen lender required repairs on a conventional loan before? I've seen it on VA/FHA, but not conventional.

Our options at this point are for the seller to remedy the issues, us to remedy the issues (before we even close because we can't close until the repairs are made), or back out of the contract (we do have a clause in there that covers this). We don't want to back out as we were planning on doing the repairs anyways, but I still have a natural hesitation on completing repairs on a house I don't own because we haven't closed yet.

[Wayne Brooks]

Yes, conventional have minimum condition standards just like fha, only not as strict.....common knowledge for any experienced agent.