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Here's what the guidelines say about missing floor covering: We need to recognize that bare floors without carpeting, vinyl, wood, or tile represent a meaningful deficiency. If a property is being appraised as-is with missing floor coverings in multiple rooms, that property gets rated C5 (meaning it has significant issues but the structure still works). However, if the appraisal is conditioned on the buyer installing flooring before closing, then it could be rated C4 instead. Fannie Mae specifically lists severely worn, damaged, or missing floor coverings as an example of C5-level problems—the kind that need to be fixed. FHA also requires that any damaged or missing floor finishes be addressed, with holes patched or surfaces repaired, though they don't require the lender to replace the finishes once removed.

Straight from UAD 3.6 / URAR (FNMA), Fannie Mae Selling Guide, and HUD/FHA Single Family Handbook 4000.1 — nothing added.

Read the actual documents:

→ Selling Guide Supplement: UAD 3.6 Policy (official agency copy)

→ Handbook 4000.1 - Defective Paint Section (official agency copy)

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📖 Want the complete reference, not just this passage? See the full UAD 3.6 Appendix F-1: URAR Reference Guide (full reference guide) →

© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

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2026 VA Minimum Property Requirements — missing handrails flagged as common MPR failures

Guidance on current VA MPRs identifies missing handrails among the deficiencies most frequently flagged by VA appraisers, requiring correction before closing.

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#1 UAD 3.6 / URAR (FNMA) Page 17

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17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages,…

UAD 3.6 / URAR (FNMA) · uad-lessons-learned-job-aid.pdf · Page 17 · View at official source (fanniemae.com/uad) →

17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages, and Deficiencies (Unit Interior) table, but indicated that the recommended actions were None. By definition as seen in Appendix F-1: URAR Reference Guide, missing floor coverings should result in a C5 rating: • If this is intended to be an as-is appraisal due to the missing floor coverings, by definition this would be a C5. • If the appraisal was intended to be made subject to the installation of the floor coverings, then it could be made a C4.

#2 UAD 3.6 / URAR (FNMA) Page 140

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Unit Interior Appendix F-1: URAR Reference Guide Page 140 of 375 Version 1.3 Flooring Condition Status (Choose one for each Flooring Type) Allowable Answer Definition / Additional…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 140 · View at official source (fanniemae.com/uad) →

Unit Interior Appendix F-1: URAR Reference Guide Page 140 of 375 Version 1.3 Flooring Condition Status (Choose one for each Flooring Type) Allowable Answer Definition / Additional Guidance No Finish The flooring is missing its final finish. Note: When Flooring Type is Subflooring Only, select this answer and indicate the location of the missing flooring in Condition Comment (10.048). Walls and Ceiling The appraiser must provide information about the walls and ceilings in the unit. The Walls and Ceiling row always displays in the Interior Features table. The information in this row applies to all walls and ceilings in the unit. Unit Interior - Interior Features: Walls and Ceiling Report Field ID Report Label When to Include Allowable Answers /

#3 Fannie Mae Selling Guide Page 101

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Fannie Mae September 2026 Page 101 of structural integrity are sufficient to support occupancy. Some components may be missing or near the end of their useful life, but major…

Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 101 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-09-30

Fannie Mae September 2026 Page 101 of structural integrity are sufficient to support occupancy. Some components may be missing or near the end of their useful life, but major components are still functional. Examples include, but are not limited to: • Roofing that is significantly worn, cupped, or curled but with no apparent active leaks • Severely worn, damaged, or missing floor coverings • Functional kitchen or bathroom that may be in disrepair (e.g., damaged or missing cabinets or countertops). C6 The dwelling features an extreme lack of maintenance, resulting in severe damages, deficiencies, or defects that impact the soundness or structural integrity, and the dwelling is not suitable for occupancy. There are major components that may be missing, no

#4 HUD/FHA Single Family Handbook 4000.1 Page 772

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as follows: • any floor finishes, including carpeting, sheet vinyl, wood, laminate, ceramic or vinyl tiles, and all tack strips and fittings that are damaged, loose, or otherwise…

HUD/FHA Single Family Handbook 4000.1 · Handbook_4000.1_-_Defective_Paint_Section.pdf · Page 772 · View at official source (HUD.gov — SFH Handbook 4000.1) → · Last verified: 2026-10-11

as follows: • any floor finishes, including carpeting, sheet vinyl, wood, laminate, ceramic or vinyl tiles, and all tack strips and fittings that are damaged, loose, or otherwise hazardous, must be removed. The Mortgagee is not required to replace these finishes once removed; and • holes or openings in interior walking surfaces must be patched, replaced, or repaired. Weak or spongy flooring must be inspected and, if needed, repaired to address hazardous conditions with an approved over-allowable. The Mortgagee must repair damaged or missing handrails or stair treads on elevated exterior porches, patios, decks, and balconies where the distance from the finished floor to the ground surface is greater than 18 inches. If repair is not feasible, the Mortgagee must

#5 HUD/FHA Single Family Handbook 4000.1 Page 520

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must be based on lump sum and lineal footage projections. 22. Closets. Describe closet work to be performed, such as: install new shelves, clothing rods; etc. Most estimates must…

HUD/FHA Single Family Handbook 4000.1 · Handbook_4000.1_-_Defective_Paint_Section.pdf · Page 520 · View at official source (HUD.gov — SFH Handbook 4000.1) → · Last verified: 2026-10-11

must be based on lump sum and lineal footage projections. 22. Closets. Describe closet work to be performed, such as: install new shelves, clothing rods; etc. Most estimates must be based on lineal footage projections. 23. Wood Floors. Describe wood floor work to be performed, such as: replace all defective flooring, holes in floors, etc., with wood flooring to match existing floors; sand, fill and refinish wood floors; install new hardwood floors at (____); etc. Most estimates must be based on square footage projections. 24. Finish Floors. Describe finish floor work to be performed, such as: install vinyl tile or sheet goods with 1/4" underlayment at (____); install carpet and pad at (____); etc. Specify nonstandard type flooring to justify

#6 VA Lenders Handbook (Pamphlet 26-7) Page 446

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Minimum Property Requirements 12-35 28. Crawl Space Change Date March 28, 2019 • This chapter has been revised in its entirety. a. Appraiser Expectation Fee appraisers are…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 446 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Minimum Property Requirements 12-35 28. Crawl Space Change Date March 28, 2019 • This chapter has been revised in its entirety. a. Appraiser Expectation Fee appraisers are required to view, but not enter, the crawl space. b. Requirements The crawl space must: • have adequate access, • be clear of debris, and • be properly vented. c. Floor Joists The floor joists must be sufficiently above the highest level of the ground to provide access for maintenance and repair of ductwork and plumbing. d. Dampness Any excessive dampness or ponding of water must be corrected. e. Vacant Area Beneath House Not all houses with a vacant area beneath the flooring are considered to have a crawl space particularly if no

#7 VA Lenders Handbook (Pamphlet 26-7) Page 496

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Construction Inspections Change 3 14.05 Delayed Installation of Appliances and Finished Floor Covering What is Required With the exception of floor covering in bathrooms and wood…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 496 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Construction Inspections Change 3 14.05 Delayed Installation of Appliances and Finished Floor Covering What is Required With the exception of floor covering in bathrooms and wood finish flooring, installation of appliances and finished floor covering may be delayed until as late as just prior to loan closing, provided the third-stage inspection report includes the following: • In Section 1, a description of all appliances and finish floor covering to be installed as identified in the specifications, for example, carpet manufacturer’s name and carpet quality code number, and the living area(s) involved, if not obvious. • In Section 6, check “Prefinal Report Approved,” and “Certification is required that lender’s inspection prior to loan closing reveals satisfactory installation of specified appliances and

#8 Fannie Mae Selling Guide Page 95

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Fannie Mae September 2026 Page 95 of The square footage of any nonstandard finished area(s) (NSFA) such as finished area(s) with direct interior access from within the dwelling…

Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 95 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-09-30

Fannie Mae September 2026 Page 95 of The square footage of any nonstandard finished area(s) (NSFA) such as finished area(s) with direct interior access from within the dwelling not conforming to the ANSI ceiling height requirements or accessed through unfinished area(s) (e.g., an unfinished hallway, a room, or staircase, etc.) must be calculated and reported separately in accordance with the ANSI standard. Additionally, the appraiser must provide the reason(s) this area does not comply with the ANSI standard and also acknowledge any contribution of the additional square footage. Fannie Mae considers a level to be below-grade if any portion of it is below-grade, regardless of the quality of its finish or the window area of any room. Therefore, a walk-out

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