Property condition, repairs & completion
Conventional appraisal standards are not FHA minimum-property standards, but the home still must be safe, sound, structurally secure and acceptable collateral.
Freddie baseline
Freddie requires the property to be safe, sound and structurally secure. Unacceptable collateral conditions can make the mortgage ineligible until properly addressed.
Fannie completion rule
Fannie generally requires improvements, alterations and repairs affecting eligibility to be completed before the loan is sold. Completion can be verified through the applicable completion documentation or other permitted alternatives.
Postponed improvements
Fannie does allow certain transactions to be delivered before some improvements are complete when the postponed-improvement requirements are met. This is an exception with conditions, not a blanket repair escrow rule.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Property eligibility, valuation method, appraisal findings, AUS messages and lender overlays all matter. The appraisal supports collateral eligibility; it does not replace underwriting.