Reading FHA Loan Rates, Closing Costs & Stats

READING, PA

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Reading's 112 lenders originated 1,066 FHA loans during 2024. The total origination value was $255,710,000, with an average FHA loan value of $239,878.

Reading FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Reading averaged 6.49% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

Reading's average FHA mortgage closing costs are $8,039.

The average rate for the prior week (2025-03-28) was 6.79% and one month ago for the week of 2025-02-28, the average rate was 6.68%.

The average rate one year ago was 7%.

For refis of the same type during the week of 2025-04-04, the average rate was 6.18%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Reading FHA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Reading level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
CROSSCOUNTRY MORTGAGE, LLC 97 6.64% $11,819
QUICKEN LOANS, LLC 91 6.34% $11,607
Mortgage America, Inc. 57 6.38% $9,862
UNITED WHOLESALE MORTGAGE, LLC 54 6.07% $14,857
PENNYMAC LOAN SERVICES, LLC 48 6.18% $12,291
CMG MORTGAGE, INC. 38 6.35% $12,963
Customers Bank 38 6.26% $7,691
MOVEMENT MORTGAGE, LLC 34 6.70% $10,213
Flanagan State Bank 32 6.67% $13,032
BROKER SOLUTIONS, INC. 28 6.65% $13,527
FREEDOM MORTGAGE CORPORATION 27 6.41% $13,942
Univest Bank and Trust Co. 22 5.97% $9,759
PLAZA HOME MORTGAGE, INC. 21 6.50% $9,205
LOANDEPOT.COM, LLC 18 6.21% $13,830
Fulton Bank 15 6.43% $8,886
East Coast Capital Corp. 15 6.67% $17,237
Paramount Residential Mortgage Group, Inc. 14 6.46% $12,642
SUCCESS MORTGAGE PARTNERS, INC. 14 6.59% $12,537
CONTOUR MORTGAGE CORPORATION 13 6.83% $10,965
GUARANTEED RATE, INC. 13 6.50% $12,468
Carrington Mortgage Services, LLC 11 6.10% $15,272
Homesale Mortgage, LLC 11 6.77% $9,439
AmeriHome Mortgage Company, LLC 10 6.50% $12,214
M&T Bank 10 6.24% $8,749
GUARANTEED RATE AFFINITY, LLC 9 6.40% $11,223
Equity Prime Mortgage LLC 9 6.19% $14,831
Flagstar Bank, FSB 9 6.25% $11,533
LOANPAL, LLC 7 5.78% $12,224
UNION HOME MORTGAGE CORP. 7 6.82% $11,504
Mr. Cooper ( Nationstar Mortgage ) 7 6.54% $11,895
AMERISAVE MORTGAGE CORPORATION 7 6.25% $12,178
GUILD MORTGAGE COMPANY 7 6.45% $12,216
ALLIED MORTGAGE GROUP, INC. 6 6.06% $11,048
RELIANCE FIRST CAPITAL, LLC 6 6.21% $15,823
Prosperity Home Mortgage, LLC 6 6.27% $12,826
NEWREZ LLC 6 6.58% $10,587
FIRST COMMUNITY MORTGAGE, INC. 6 6.33% $13,792
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 6.68% $10,077
Citizens Bank 5 6.43% $7,816
Truist 4 6.78% $10,321
First National Bank of Pennsylvania 4 6.03% $9,776
MUTUAL OF OMAHA MORTGAGE, INC. 4 6.13% $15,254
PLANET HOME LENDING, LLC 4 6.25% $12,136
MORTGAGE SOLUTIONS OF COLORADO, LLC 4 7.00% $11,794
AMERICAN FINANCING CORPORATION 4 5.81% $14,361
GSF Mortgage Corporation 4 7.22% $15,475
EMBRACE HOME LOANS, INC. 3 6.83% $12,643
Keystone Funding, Inc. 3 6.79% $10,721
Mortgage Research Center, LLC 3 7.08% $5,935
LENDING CAPITAL GROUP Inc 3 6.96% $11,392
TOWNE MORTGAGE COMPANY 3 5.41% $16,140
Northpointe Bank 3 6.50% $8,816
HOMESIDE FINANCIAL, LLC 3 6.71% $16,254
SUN WEST MORTGAGE COMPANY, INC. 3 5.96% $12,965
EMM LOANS LLC 3 6.29% $19,191
Meridian Bank Corporation 3 6.58% $11,484
Wells Fargo Bank 3 6.38% $11,357
CARDINAL FINANCIAL 3 6.63% $18,949
MILEND, INC. 3 6.25% $13,982
ZILLOW HOME LOANS, LLC 2 6.25% $9,645
VILLAGE CAPITAL MORTGAGE 2 6.25% $6,752
US MORTGAGE CORPORATION 2 6.00% $12,163
U.S. Bank 2 6.63% $6,678
Franklin Loan Corporation 2 6.19% $10,516
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 5.75% $14,215
Capital Bank 2 7.13% $13,630
TOP FLITE FINANCIAL, INC. 2 6.69% $17,246
American Mortgage & Equity Consultants, Inc. 2 6.75% $13,233
Lakeview Community Capital, LLC 2 6.37% $11,959
LAKEVIEW LOAN SERVICING, LLC 2 7.00% $10,228
T2 FINANCIAL LLC 2 7.00% $10,531
Century Mortgage Company DBA Century Lending Company 2 6.00% $6,239
Advisors Mortgage Group, L.L.C. 2 6.81% $11,726
NFM, INC. 2 5.94% $18,759
TJC Mortgage, Inc. 1 5.75% $11,301
Acre Mortgage and Financial Inc 1 6.25% $7,086
AMERICAN FINANCIAL NETWORK, INC. 1 7.63% $19,660
AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.13% $6,814
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.13% $8,314
Arvest Bank 1 5.88% $14,149
AXIA FINANCIAL, LLC 1 6.75% $13,584
BAY EQUITY LLC 1 6.13% $8,756
BAYSHORE MORTGAGE FUNDING, LLC 1 6.63% $19,290
BETTER MORTGAGE CORPORATION 1 7.13% $8,017
DEVELOPER'S MORTGAGE COMPANY 1 7.00% $6,589
DIRECT MORTGAGE LOANS, LLC 1 8.25% $8,468
EQUITY RESOURCES, INC. 1 6.75% $7,374
EVERETT FINANCIAL, INC. 1 6.75% $6,548
FIRST ALLIANCE HOME MORTGAGE, LLC 1 5.62% $8,909
First Citizens Community Bank 1 6.63% $7,763
FIRST COLONY MORTGAGE CORPORATION 1 5.25% $20,063
First Federal Bank 1 5.50% $17,789
Gateway First Bank 1 6.75% $11,594
JMAC LENDING, INC. 1 6.00% $11,860
LAND HOME FINANCIAL SERVICES, INC. 1 8.50% $10,565
MICHIGAN MUTUAL, INC. 1 6.25% $11,635
Mid Penn Bank 1 6.00% $16,492
MORTGAGE ACCESS CORP. 1 6.25% $10,073
NATION ONE MORTGAGE CORPORATION 1 5.25% $9,425
NATIONS DIRECT MORTGAGE, LLC 1 8.25% $10,975
Nations Lending Corporation 1 6.75% $15,613
NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $20,270
PENTAGON FEDERAL CREDIT UNION 1 5.88% $10,872
POLARIS HOME FUNDING CORP. 1 6.75% $9,335
Quaint Oak Mortgage, LLC 1 6.25% $7,934
RADIUS FINANCIAL GROUP INC. 1 6.25% $9,197
TD Bank 1 6.50% $6,070
The Loan Store, Inc. 1 6.88% $11,417
ABSOLUTE HOME MORTGAGE CORPORATION 1 6.25% $11,065
UNITED MORTGAGE CORP 1 6.75% $13,630
UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 7.50% $8,229
York Traditions Bank 1 6.75% $9,191

The top Reading FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 97 FHA loans originated. Their average total fees are $11,819, which is $212 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Reading FHA lenders (with over 10 loans originated) are Customers Bank ($7,691), M&T Bank ($8,749), Fulton Bank ($8,886), PLAZA HOME MORTGAGE, INC. ($9,205) and Homesale Mortgage, LLC ($9,439).

The lowest rate Reading FHA lenders (with over 10 loans originated) are Univest Bank and Trust Co. (5.97%), UNITED WHOLESALE MORTGAGE, LLC (6.07%), Carrington Mortgage Services, LLC (6.10%), PENNYMAC LOAN SERVICES, LLC (6.18%) and LOANDEPOT.COM, LLC (6.21%).

Reading FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
READING, PA BERKS 2022 $420,680 $538,650 $651,050 $809,150
READING, PA BERKS 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Reading (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $171,945 (1.2%) $224,586 (3.4%) 0.64 1,241
2018-02-01 $174,950 (0.7%) $224,243 (0.6%) 0.64 1,159
2018-03-01 $179,900 (2.8%) $232,726 (4.0%) 0.63 1,103
2018-04-01 $186,875 (1.1%) $237,457 (3.7%) 0.63 1,159
2018-05-01 $199,900 (5.3%) $247,733 (6.8%) 0.67 1,191
2018-06-01 $209,945 (10.8%) $256,616 (9.7%) 0.70 1,253
2018-07-01 $209,050 (10.1%) $255,063 (7.8%) 0.70 1,253
2018-08-01 $210,500 (13.8%) $255,859 (9.0%) 0.71 1,253
2018-09-01 $209,900 (16.7%) $253,270 (9.3%) 0.71 1,255
2018-10-01 $209,950 (17.4%) $255,392 (10.2%) 0.71 1,246
2018-11-01 $209,900 (20.2%) $254,543 (12.6%) 0.71 1,239
2018-12-01 $204,990 (17.2%) $251,406 (9.4%) 0.71 1,176
2019-01-01 $199,948 (16.3%) $251,747 (12.1%) 0.69 1,071
2019-02-01 $199,945 (14.3%) $256,610 (14.4%) 0.68 1,009
2019-03-01 $208,471 (15.9%) $261,668 (12.4%) 0.68 997
2019-04-01 $222,400 (19.0%) $268,807 (13.2%) 0.71 987
2019-05-01 $222,400 (11.3%) $269,733 (8.9%) 0.70 1,006
2019-06-01 $220,000 (4.8%) $268,946 (4.8%) 0.69 1,030
2019-07-01 $219,900 (5.2%) $265,874 (4.2%) 0.69 1,095
2019-08-01 $218,991 (4.0%) $269,232 (5.2%) 0.69 1,077
2019-09-01 $225,127 (7.3%) $273,995 (8.2%) 0.72 1,043
2019-10-01 $232,445 (10.7%) $278,665 (9.1%) 0.75 998
2019-11-01 $235,000 (12.0%) $280,092 (10.0%) 0.77 953
2019-12-01 $233,725 (14.0%) $281,449 (12.0%) 0.78 841
2020-01-01 $229,950 (15.0%) $282,298 (12.1%) 0.77 770
2020-02-01 $247,300 (23.7%) $287,164 (11.9%) 0.81 717
2020-03-01 $259,900 (24.7%) $297,749 (13.8%) 0.81 675
2020-04-01 $274,674 (23.5%) $313,591 (16.7%) 0.86 593
2020-05-01 $259,900 (16.9%) $303,032 (12.4%) 0.79 619
2020-06-01 $249,950 (13.6%) $306,374 (13.9%) 0.74 587
2020-07-01 $272,650 (24.0%) $326,195 (22.7%) 0.79 486
2020-08-01 $270,000 (23.3%) $322,004 (19.6%) 0.77 479
2020-09-01 $259,975 (15.5%) $317,546 (15.9%) 0.74 477
2020-10-01 $264,900 (14.0%) $325,747 (16.9%) 0.76 460
2020-11-01 $267,400 (13.8%) $315,962 (12.8%) 0.78 465
2020-12-01 $262,400 (12.3%) $311,155 (10.6%) 0.78 432
2021-01-01 $259,000 (12.6%) $317,005 (12.3%) 0.77 367
2021-02-01 $284,900 (15.2%) $346,614 (20.7%) 0.83 284
2021-03-01 $288,450 (11.0%) $354,339 (19.0%) 0.82 274
2021-04-01 $279,075 (1.6%) $341,853 (9.0%) 0.76 285
2021-05-01 $274,900 (5.8%) $339,395 (12.0%) 0.73 313
2021-06-01 $237,748 (-4.9%) $314,874 (2.8%) 0.63 407
2021-07-01 $249,245 (-8.6%) $322,735 (-1.1%) 0.66 414
2021-08-01 $246,495 (-8.7%) $315,304 (-2.1%) 0.66 448
2021-09-01 $242,450 (-6.7%) $312,485 (-1.6%) 0.65 438
2021-10-01 $245,990 (-7.1%) $320,052 (-1.8%) 0.66 438
2021-11-01 $245,220 (-8.3%) $310,791 (-1.6%) 0.66 411
2021-12-01 $232,500 (-11.4%) $296,653 (-4.7%) 0.63 352
2022-01-01 $239,900 (-7.4%) $308,839 (-2.6%) 0.65 273
2022-02-01 $239,450 (-16.0%) $313,873 (-9.5%) 0.62 261
2022-03-01 $254,725 (-11.7%) $332,217 (-6.2%) 0.64 251
2022-04-01 $259,950 (-6.9%) $336,724 (-1.5%) 0.62 270
2022-05-01 $249,950 (-9.1%) $331,140 (-2.4%) 0.57 280
2022-06-01 $255,000 (7.3%) $345,783 (9.8%) 0.57 341
2022-07-01 $254,900 (2.3%) $341,887 (5.9%) 0.57 395
2022-08-01 $264,975 (7.5%) $338,426 (7.3%) 0.61 414
2022-09-01 $248,700 (2.6%) $329,147 (5.3%) 0.58 425
2022-10-01 $250,000 (1.6%) $334,888 (4.6%) 0.59 423
2022-11-01 $272,450 (11.1%) $344,724 (10.9%) 0.65 413
2022-12-01 $279,900 (20.4%) $337,642 (13.8%) 0.69 359
2023-01-01 $274,925 (14.6%) $347,775 (12.6%) 0.68 306
2023-02-01 $287,400 (20.0%) $357,876 (14.0%) 0.69 280
2023-03-01 $298,725 (17.3%) $382,152 (15.0%) 0.70 283
2023-04-01 $317,450 (22.1%) $386,628 (14.8%) 0.74 297
2023-05-01 $319,950 (28.0%) $398,014 (20.2%) 0.73 308
2023-06-01 $339,741 (33.2%) $415,642 (20.2%) 0.76 322
2023-07-01 $337,754 (32.5%) $423,547 (23.9%) 0.77 310
2023-08-01 $332,950 (25.7%) $404,337 (19.5%) 0.76 326
2023-09-01 $349,900 (40.7%) $407,398 (23.8%) 0.81 342
2023-10-01 $348,197 (39.3%) $406,877 (21.5%) 0.82 367
2023-11-01 $336,200 (23.4%) $395,412 (14.7%) 0.80 376
2023-12-01 $316,750 (13.2%) $371,887 (10.1%) 0.77 360
2024-01-01 $307,450 (11.8%) $369,204 (6.2%) 0.75 305
2024-02-01 $306,200 (6.5%) $365,293 (2.1%) 0.74 280
2024-03-01 $298,500 (-0.1%) $378,392 (-1.0%) 0.70 262
2024-04-01 $325,000 (2.4%) $397,227 (2.7%) 0.76 278
2024-05-01 $349,925 (9.4%) $419,082 (5.3%) 0.80 285
2024-06-01 $349,450 (2.9%) $428,576 (3.1%) 0.79 300
2024-07-01 $342,450 (1.4%) $414,621 (-2.1%) 0.78 359
2024-08-01 $339,900 (2.1%) $414,093 (2.4%) 0.79 388
2024-09-01 $344,900 (-1.4%) $417,700 (2.5%) 0.81 396
2024-10-01 $347,450 (-0.2%) $399,825 (-1.7%) 0.82 420
2024-11-01 $335,000 (-0.4%) $393,399 (-0.5%) 0.80 425
2024-12-01 $329,950 (4.2%) $388,851 (4.6%) 0.82 382
2025-01-01 $330,000 (7.3%) $388,060 (5.1%) 0.82 364
2025-02-01 $338,700 (10.6%) $385,473 (5.5%) 0.82 340
2025-03-01 $329,900 (10.5%) $401,729 (6.2%) 0.00 305
Reading's median listing price for 2025-03-01 was $329,900, a difference of $31,400 (10.5%) versus the prior year and $-8,800 versus the prior month.

Reading's median listing price comes in at 0% of the national average.

Reading's average listing price for 2025-03-01 was $401,729, a difference of $23,337 (6.2%) versus the prior year and $16,256 versus the prior month.

For the 2025-03-01 period, Reading had 305 MLS listings, a difference of -35 listings (-10%) versus the prior month and 43 listings (16%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Reading (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 92 days 1,742 sqft
2018-02-01 90 days 1,767 sqft
2018-03-01 65 days 1,791 sqft
2018-04-01 52 days 1,812 sqft
2018-05-01 52 days 1,862 sqft
2018-06-01 53 days 1,917 sqft
2018-07-01 58 days 1,884 sqft
2018-08-01 60 days 1,887 sqft
2018-09-01 64 days 1,900 sqft
2018-10-01 67 days 1,899 sqft
2018-11-01 67 days 1,881 sqft
2018-12-01 73 days 1,856 sqft
2019-01-01 85 days 1,856 sqft
2019-02-01 87 days 1,881 sqft
2019-03-01 69 days 1,938 sqft
2019-04-01 47 days 1,998 sqft
2019-05-01 39 days 1,985 sqft
2019-06-01 40 days 1,952 sqft
2019-07-01 44 days 1,947 sqft
2019-08-01 48 days 1,960 sqft
2019-09-01 53 days 1,992 sqft
2019-10-01 58 days 2,023 sqft
2019-11-01 58 days 2,036 sqft
2019-12-01 70 days 2,010 sqft
2020-01-01 77 days 2,025 sqft
2020-02-01 66 days 2,048 sqft
2020-03-01 44 days 2,080 sqft
2020-04-01 66 days 2,134 sqft
2020-05-01 74 days 2,034 sqft
2020-06-01 40 days 2,047 sqft
2020-07-01 34 days 2,109 sqft
2020-08-01 28 days 2,144 sqft
2020-09-01 25 days 2,030 sqft
2020-10-01 41 days 2,052 sqft
2020-11-01 42 days 2,010 sqft
2020-12-01 47 days 1,963 sqft
2021-01-01 57 days 1,934 sqft
2021-02-01 62 days 2,100 sqft
2021-03-01 45 days 1,986 sqft
2021-04-01 30 days 1,949 sqft
2021-05-01 25 days 1,889 sqft
2021-06-01 31 days 1,810 sqft
2021-07-01 38 days 1,831 sqft
2021-08-01 39 days 1,810 sqft
2021-09-01 39 days 1,784 sqft
2021-10-01 43 days 1,792 sqft
2021-11-01 45 days 1,784 sqft
2021-12-01 48 days 1,754 sqft
2022-01-01 50 days 1,692 sqft
2022-02-01 42 days 1,739 sqft
2022-03-01 28 days 1,765 sqft
2022-04-01 27 days 1,805 sqft
2022-05-01 22 days 1,768 sqft
2022-06-01 23 days 1,776 sqft
2022-07-01 29 days 1,780 sqft
2022-08-01 32 days 1,794 sqft
2022-09-01 40 days 1,774 sqft
2022-10-01 39 days 1,790 sqft
2022-11-01 42 days 1,853 sqft
2022-12-01 56 days 1,841 sqft
2023-01-01 62 days 1,824 sqft
2023-02-01 50 days 1,905 sqft
2023-03-01 37 days 1,979 sqft
2023-04-01 33 days 1,960 sqft
2023-05-01 33 days 1,982 sqft
2023-06-01 37 days 1,970 sqft
2023-07-01 38 days 1,979 sqft
2023-08-01 35 days 1,930 sqft
2023-09-01 41 days 1,969 sqft
2023-10-01 38 days 1,981 sqft
2023-11-01 38 days 1,880 sqft
2023-12-01 45 days 1,848 sqft
2024-01-01 52 days 1,822 sqft
2024-02-01 38 days 1,807 sqft
2024-03-01 36 days 1,702 sqft
2024-04-01 29 days 1,821 sqft
2024-05-01 26 days 1,934 sqft
2024-06-01 27 days 1,986 sqft
2024-07-01 29 days 1,957 sqft
2024-08-01 34 days 1,966 sqft
2024-09-01 35 days 1,950 sqft
2024-10-01 34 days 1,959 sqft
2024-11-01 38 days 1,885 sqft
2024-12-01 43 days 1,881 sqft
2025-01-01 50 days 1,893 sqft
2025-02-01 37 days 1,820 sqft
2025-03-01 0 days 1,808 sqft
Reading's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

Reading's median square footage for active listings during the 2025-03-01 period was 1,808 sqft. One year prior, the average listing was 1,702 sqft.

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).