What can fail a conventional appraisal?
Major structural defects (foundation, framing, water intrusion), safety hazards that the lender flags, properties with visible damage that affects collateral value, or values that come in materially below contract price. Conventional doesn't fail appraisals over cosmetic issues the way FHA might.
What this actually means.
Conventional appraisals are oriented toward value and acceptable collateral, not property-condition compliance. Items that can stop a conventional appraisal: visible structural damage, active leaks, foundation issues, fire damage, properties not legally permitted, properties with environmental hazards. Lenders may request repairs on safety issues even when not strictly required by the appraiser. Subject to lender overlays.
Where this can move.
Property condition, comparable sales availability, appraisal waiver eligibility, and Reconsideration of Value can change the appraised value.
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More conventional questions on Appraisal.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.