Lender requiring repairs before closing

[Chris Mackinlay]

Hey BP.

Have a weird situation I think and I would like some thoughts on understanding it.

I have a house under contract that needs some work: exterior paint and some plumbing issues addressed. It's ugly, that's why I wanted to buy it.

It was appraised today and the appraiser brought those things to the lender. Lender is requiring I put funds into escrow to pay for these repairs. I had planned on completing these repairs myself. So I'll be out about $3k.

Frustrating part is it's a conventional loan on a HUD house. Nobody to negotiate with, and it's not as strict as the FHA.

After getting this news, the lender basically blamed the appraisal.

I don't have much recourse here. The house still makes sense to buy and is a huge blessing, it's just irritating that a week before closing, this happens.

Any insights to offer?