Getting Ready for FHA & VA Buyers:
What sellers need to know

In most cases, yes — and in this market, being open to government-backed buyers can meaningfully expand your buyer pool. FHA and VA buyers are often highly motivated, well-qualified within their loan parameters, and well-supported by their lenders.

The hesitation sellers sometimes feel comes from concerns about appraisal conditions and repair requirements. But many of those concerns are manageable — especially if you address known issues before listing rather than after you're under contract.

All appraisals establish market value. But FHA and VA appraisals go further — the appraiser is also required to assess the home's condition against minimum property standards set by HUD (for FHA) or the VA. If the home doesn't meet those standards, the appraiser issues conditions that must be resolved before the loan can close.

A conventional appraisal focuses primarily on value. It may note condition issues, but the bar for required repairs is lower. This is the key distinction: with FHA and VA, the appraiser functions as a value estimator and a property condition reviewer.

This is negotiable — but in practice, the seller usually addresses appraiser conditions, because the loan can't fund until they're resolved and the buyer typically can't pay for repairs on a home they don't yet own.

There are a few options: the seller completes and pays for the repairs, the parties negotiate a price reduction to account for them, or — in limited cases — the buyer and seller agree to an escrow holdback arrangement. Your agent can walk you through the options based on your specific situation.

They're similar but not identical. Both programs require the home to be safe, structurally sound, and sanitary — but the VA has a few additional requirements that go beyond FHA, particularly around pest inspections, well water testing, and drainage.

The practical overlap is significant: a home that's ready for an FHA buyer is usually close to ready for a VA buyer, with a few extra steps to confirm depending on the property's characteristics.

In Washington State, VA loans require a pest inspection — specifically a Wood Destroying Organism (WDO) report — completed by a licensed pest inspector. The report must show no active infestation and no significant damage from wood-destroying organisms before the VA will guarantee the loan.

If the report comes back with findings, the damage must be treated and repaired. For VA loans, the seller is traditionally required to pay for the pest inspection — though this is sometimes negotiated in the purchase contract.

The VA appraisal establishes a Notice of Value (NOV) — the maximum amount the VA will guarantee for that property. If the appraised value comes in below the purchase price, the buyer cannot finance the difference through their VA loan.

If you believe the appraisal is inaccurate, there is a process to request reconsideration of value (ROV) by submitting comparable sales data that may not have been considered. Your buyer's lender can initiate this. It's not always successful, but it's worth pursuing if you have solid data to support a higher value.

Only if the condo project is approved. FHA and VA each maintain lists of approved condominium projects. If your condo isn't on the approved list, buyers using those loan types generally can't purchase in your building — regardless of their individual qualifications.

FHA does offer a spot approval process in some cases, but it adds complexity. VA has a similar individual unit approval process. If you're selling a condo and want to attract FHA or VA buyers, check your project's approval status early and talk with your agent about options.

It's one of the best investments a seller can make, and I recommend it for most listings — not just those expecting government-backed buyers. A pre-listing inspection lets you find issues on your timeline, address them at your cost with contractors of your choice, and market the home with documentation that it's been cared for.

Without one, you're relying on the buyer's inspector and the appraiser to surface issues — at which point you're negotiating repairs under pressure, often with less favorable terms.

It depends on the nature and extent of the deferred maintenance. Minor cosmetic issues — dated finishes, worn carpet, older appliances — generally won't create FHA or VA appraisal conditions. Safety and structural issues will.

The honest answer: if your home has significant deferred maintenance, the right approach is to triage it before listing. Address the items most likely to create appraiser conditions, price the home to reflect its condition, and be upfront in disclosures. Trying to avoid government-backed buyers entirely is rarely the solution — it narrows your market without fixing the underlying issue.

Ideally, 60 to 90 days before your target list date. That gives you time to get a pre-listing inspection, gather contractor bids, complete repairs without rushing, and still have time for staging, photography, and marketing prep.

Sellers who try to compress all of this into two weeks before listing often end up choosing between delaying their list date, cutting corners on repairs, or going to market with known issues they haven't addressed.