What Fails A Home Inspection (And What Doesn't)

There is no fail grade on a home inspection. Inspectors document conditions. HomeScore does not publish a measured fail rate.

The Pass/Fail Myth

Home inspections are not pass/fail tests. Inspectors document conditions; they don't issue grades. What buyers sometimes mean by 'fail' is one of three things: (1) findings that make the deal unfinanceable, (2) findings the seller declines to fix or credit, or (3) findings whose repair cost exceeds the buyer's budget. HomeScore does not publish a measured rate for any of those outcomes.

Findings That Kill Financing

FHA, VA, and USDA loans require the home to meet minimum property standards. If the inspection or appraisal flags any of the conditions below, the loan won't close until they're fixed — and most sellers won't pay to fix them on a contingent buyer's behalf.

Active roof leaks or roof at end of life: FHA requires 2+ years of remaining life. Replacement: $9,000–$25,000.
Peeling paint on pre-1978 homes (lead hazard): FHA/HUD blocker. Encapsulation or stabilization: $1,000–$5,000.
Missing handrails on stairs of 3+ risers: Code/safety requirement. Install: $200–$800.
Exposed wiring, missing outlet covers, double-tapped breakers: Electrician fix: $300–$1,500.
Major plumbing leaks or non-functional water heater: Required to be operational at closing. Repair: $200–$3,500.
Broken windows or missing screens (FHA): Window repair: $150–$600 per opening.

Findings that often need a specialist quote

These do not by themselves block financing. If one appears in a report, get a written specialist scope before assigning a budget or a credit request.

Foundation movement (horizontal cracks, stair-step cracks): Engineer evaluation $400–$800 first. Repair: $5,000–$40,000.
Polybutylene plumbing or galvanized supply lines: Insurance carriers exclude these. Re-pipe: $4,000–$10,000.
Federal Pacific, Zinsco, or Pushmatic electrical panels: Documented fire-hazard brands. Replacement: $2,500–$5,000.
Underground oil tank (active or abandoned): Removal $1,500–$3,000. Soil remediation if leaking: $15,000–$100,000+.
Active mold colonies (50+ sq ft): Remediation: $2,000–$15,000. Source repair separate.
Failed or missing sewer lateral: Replacement: $3,000–$15,000. Get a sewer scope before signing.

Findings Buyers Think Are Bad (But Usually Aren't)

Many of the items that concern first-time buyers are normal aging or cosmetic notes. Treat them as maintenance context, and keep the conversation on safety, structure, and systems with a written scope.

Hairline cracks in drywall and plaster: Normal seasonal movement. No action needed.
Old (but functional) furnace or AC: Budget for replacement; not a dealbreaker.
Dated electrical (3-prong outlets, fuse panel in older homes): Updateable for $500–$3,000. Not unsafe by itself.
Original windows in good condition: Functional original windows often outperform cheap replacements.
Cosmetic mold on bathroom caulk: $15 caulk gun fix. Not a remediation event.
Minor settlement cracks in concrete: Normal. Monitor; don't repair unless growing.

How To Respond Without Losing The Deal

When a serious condition appears, use a simple sequence: (1) order specialty diagnostics promptly (engineer, sewer scope, or mold sample) so the conversation is grounded in a written scope; (2) request a credit at closing rather than seller-completed repair so you control quality and timing; (3) anchor the credit to two written contractor estimates; (4) decide with your agent using the contract deadline and the documented scope.

Cost range

Typical cost of dealbreaker findings: $1,000–$50,000