A claim by itself does not bar a loan. What matters is whether the damage was repaired, whether the home can be insured and what the appraisal shows. Unrepaired damage that affects safety or soundness can make a property ineligible until it is fixed. Ask for repair records and claim history early.
Fannie Mae requires the appraiser to rate the property's condition. A rating of C6, which describes substantial damage or deferred maintenance affecting safety, soundness or structural integrity, makes the loan ineligible for sale to Fannie Mae until the issues are resolved.
So the question for a lender is not whether a claim exists, but whether the home has unrepaired damage and whether it meets condition and insurance requirements.
If you are the buyer, ask for the claim history and the repair records, including permits and contractor invoices. If you are the owner refinancing, finish repairs and keep the documentation. In both cases, confirm with an insurance agent that the property can be insured on acceptable terms.
Claim situations and what a lender looks for
| Situation | What gets reviewed |
|---|---|
| Open claim, repairs not finished | Appraiser condition findings and whether repairs must be completed first |
| Claim paid, repairs complete | Proof of completed work such as invoices, permits and inspection |
| Past claim, insurer reluctant to write | Whether acceptable insurance can be bound before closing |
General guidance. Each lender and insurer applies its own checklist.
What to do
- Ask the seller for claim history and repair documents.
- Get an insurance quote before the inspection period ends.
- Ask the lender if the appraiser's condition findings require repairs.
- Keep every invoice, permit and photo of completed work.
General information, not legal or tax advice. Confirm with your title company or attorney.
Sources
- Fannie Mae Selling Guide, B4-1.3-06, Property Condition and Quality of Construction. C6 condition rating loans are not eligible for sale to Fannie Mae. Source type: Official. Checked October 17, 2026.
- Fannie Mae Selling Guide, Subpart B7, Insurance. Property and flood insurance requirements. Source type: Official. Checked October 17, 2026.