Fannie Mae C5 and C6 Condition Ratings: Which Repairs Are Mandatory to Close?
Complete compliance and contractor execution playbook for upgrading c5/c6 deficiencies to c4 standard under Fannie Mae B4-1.3-06. Typical cost: $500–$2,200, turnaround: 2–4d, with full Form 1004D verification steps.
Why Upgrading C5/C6 Deficiencies to C4 Standard Triggers "Subject To" Appraisal Conditions
When a residential mortgage appraisal is completed under Fannie Mae B4-1.3-06, any deficiency involving upgrading c5/c6 deficiencies to c4 standard shifts the report from "As-Is" to "Subject To" repair or inspection. Unlike general home inspection negotiation items, an appraisal condition tied to upgrading c5/c6 deficiencies to c4 standard is a hard underwriting gate that must be resolved and verified—typically via Fannie Mae Form 1004D / Freddie Mac Form 442—before the lender issues Clear to Close (CTC).
Regulatory Standard & Underwriting Benchmark (Fannie Mae B4-1.3-06)
- Governing Guideline: Fannie Mae B4-1.3-06 requires the component to be safe, structurally sound, weather-tight, and fully operational at the time of loan closing.
- Typical Repair Cost: $500–$2,200 depending on material access and regional labor rates.
- Expected Field Turnaround: 2–4d from dispatch to completion photos.
Step-by-Step Field Remediation Playbook
1. Pre-Work Scope Matching & Geotagged Before Photos
Before altering the area, match the exact sentence on the appraisal addendum to the physical condition on site. Capture a wide-angle context shot and a close-up Before Photo from the same vantage point the appraiser used.
2. Trade Execution Specification
Resolve structural, roof, or mechanical failure items that caused a C5 or C6 rating so the appraisal can be recertified on Form 1004D.
Ensure all replacement materials are permanent, code-compliant, primed, painted, or sealed to match adjacent finishes, and that all construction debris or paint flakes are completely removed from the site.
3. Underwriting Evidence & Form 1004D Verification
| Verification Layer | Appraiser / Underwriter Requirement | Common Kickback Cause | | :--- | :--- | :--- | | Matched After Photos | Wide context + close-up showing completed finish | Cropped photo with no room/elevation context | | Itemized Invoice | Line item explicitly naming "Upgrading C5/C6 Deficiencies to C4 Standard" | Vague invoice reading "General handyman labor" | | Workmanlike Finish | Painted, caulked, flush, and permanent | Unpainted wood, raw drywall mud, or temporary patch |
Fast-Track Coordination with AppraisalFix
AppraisalFix connects loan officers, processors, homeowners, and real estate agents with vetted local handymen and licensed trades who specialize in mortgage appraisal repairs and Form 1004D clearance.
Frequently Asked Questions
How fast can upgrading c5/c6 deficiencies to c4 standard be cleared for a 1004D re-inspection?
Most upgrading c5/c6 deficiencies to c4 standard callouts are completed within 2–4d of quote approval, allowing the loan processor to order the Form 1004D re-inspection immediately with pre-audited completion photos.
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have appraisal repairs holding up a closing?
Get a qualified handyman on-site in 24–48 hours and a re-certified 1004D in days, not weeks.