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Loans on "As Is" Properties

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Aug 9, 2007
Professional Status
General Public
Do lending guidelines require cost to cure items to be "cured" prior to closing a loan? Just Federally insured loans? What about a normal bank loan, do the cost to cure issues have to be corrected prior to the loan closing? If the lender is going to package the loan, does cost to cure have to be performed?

Do cost to cure items involve just termite reports, what about home inspection reports and air quality reports?


Elite Member
Jan 22, 2002
Professional Status
Certified General Appraiser
Yes, no, maybe. I've seen lenders waive the issues. I've seen the lenders escrow for the repairs, and the funds released upon receipt of bills showing the work done.

If a loan is made "subject to" and it is sold on the secondary market, Fannie/Freddie requires a satisfactory completion certificate. Private label purchases each have their own guidelines.

I know this is not the clear and concise answer, so I repeat, yes, no, maybe.
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