Short answer
Only repairs needed for safety, security and soundness, to protect the occupants' health, or to keep the home marketable. HUD's Handbook 4000.1 says cosmetic items, like holes in screens, cracked window glass or a dripping faucet, aren't required. Common required items in older NH homes include peeling paint on homes built before 1978, a roof near the end of its life, and heating, plumbing or electrical systems that don't work safely.
What's the rule for required repairs?
Under HUD's Repair Requirements, the appraiser limits required repairs to those needed to maintain the safety, security and soundness of the home, preserve its marketability, and protect the occupants' health and safety. The lender, not the appraiser, makes the final call on which repairs are required. HUD also says an appraiser shouldn't call for replacing something just because it's old if it's still working well.
What counts as cosmetic?
HUD lists examples of cosmetic or minor items that don't have to be fixed: missing handrails that don't pose a safety threat, holes in window screens, cracked window glass, worn interior paint in homes built after 1978, minor plumbing leaks like a dripping faucet, and other worn items that don't affect health or safety. The appraiser still notes them and considers them in the home's condition and value.
Items that often come up in NH homes
- Peeling paint, pre-1978 homes: the appraiser checks inside and out, including porches, railings, windows, garages and sheds, and defective paint must be repaired following HUD and EPA rules. See lead paint disclosure.
- Peeling paint, 1978 and newer: exterior paint must be fixed only where it exposes the surface underneath to the weather.
- Roof: it must keep moisture out and have at least two years of remaining life. If not, the appraisal can be made subject to inspection by a professional roofer.
- Heat, plumbing and electrical: the appraiser runs the systems, and ones that are damaged or don't work properly need repair or further inspection.
- Attic and foundation: signs like water stains or poor ventilation can lead to an inspection or repair.
What if the home is vacant and winterized?
Many NH homes for sale in winter have the water drained and utilities off. HUD says the appraiser should ask to have utilities turned on. If that isn't possible, the appraisal is completed subject to a second visit once utilities are restored, and that visit can add repair requirements. Ask the listing agent early about de-winterizing. See buying a home in winter.
Who pays, and what are my options?
Repairs are usually negotiated with the seller and finished before closing. In some cases a lender can set up a repair escrow for work that can't be done before closing, as long as the home is safe to live in. For bigger projects, an FHA 203(k) loan can finance the work. See renovation loans and if the appraisal comes in low.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.