VA appraisals are essential for determining the value and ensuring the safety and habitability of homes being financed with VA loans. The appraisal process ensures that the property meets the Minimum Property Requirements (MPRs) set forth by the Department of Veterans Affairs (VA), providing a safe, structurally sound, and sanitary home for veterans and military families.

What does the VA appraiser look for during this process?

The primary areas of inspection for VA appraisals include the property’s structure, safety, and habitability. Below are some of the key inspection points:

Structural Integrity

• Foundation: The foundation must be stable and without major cracks or defects.
• Roof: The roof should be in good condition with no active leaks and a reasonable remaining life expectancy.
• Walls and Floors: Walls and floors must be sound and free from significant damage.

Safety Standards

• Electrical System: The electrical system must be safe, with no exposed wiring or faulty connections.
• Heating System: The home must have a functioning and adequate heating system for the local climate.
• Water Supply and Sanitation: The property must have a safe water supply and proper sewage disposal systems.

Habitability Concerns

• Lead-Based Paint: For homes built before 1978, the appraiser will check for lead-based paint hazards. Any peeling or chipping paint must be corrected.
• Egress Windows: Bedrooms must have at least one window that provides egress in case of emergency.
• Ventilation: Proper ventilation is required in attics and crawl spaces to prevent moisture buildup.

VA Minimum Property Requirements at a Glance

• Working electric, heating, and cooling systems: These systems must be operational and safe.
• Adequate roofing: The roof should be expected to last for the foreseeable future without requiring major repairs.
• Sufficient size: The home must be large enough to accommodate basic living necessities.
• Clean, continuous water supply: The property must have a safe and sanitary water supply.
• Free of lead-based paint: There should be no peeling or chipping lead-based paint, especially in homes built before 1978.
• Free of wood-destroying insects, fungus, and dry rot: The property must be inspected for these hazards.
• Sanitary sewage disposal: Proper sewage disposal is necessary.
• All-weather access: The property must be accessible via a public or private street year-round.
• Accessible and vented attics and crawl spaces: These areas must be properly vented and accessible.

Home Inspections and the VA Appraisal

While the VA does not require homebuyers to get a home inspection, it is recommended as an added layer of protection. Home inspections assess the overall structure, including the roof, HVAC system, foundation, and more, against local building codes to uncover potential issues that the VA MPRs may miss.

Key Inspection Areas Required by VA

The VA’s primary concern is the safety and well-being of the veteran homebuyer. Therefore, the appraisal process includes thorough checks of various aspects of the property to ensure it meets the VA’s minimum property requirements.

• Lot Grading: The lot should be graded to allow water to drain away from the house, preventing moisture from entering the foundation.
• Handrails: All steps and stairways must have handrails for safety.
• Smoke and Carbon Monoxide Detectors: The home must have functioning smoke and carbon monoxide detectors in appropriate locations.

Additional Requirements and Considerations

• Geological or Soil Instability, Subsidence, and Sinkholes: The appraiser should report any signs of potential instability that may affect the value or safety of the property.
• Special Flood Hazard Area: Properties in flood-prone areas must have appropriate flood insurance and meet additional requirements.
• Encroachments: Any encroachments on the property must be resolved before loan approval.
• Utilities: The property must have access to safe drinking water, sewer, gas, and electricity.
• Mechanical Systems: These systems must be safe to operate and protected from the elements.
• Heating: The property must maintain a minimum temperature of 50°F in areas with plumbing. Air conditioning is not required but must be operational if installed.

What Happens if the Home Fails the MPRs

If a home does not meet the VA MPRs, the loan will not be approved until the issues are resolved. In some cases, the VA may consider waiving the MPR repairs if the property is deemed safe, structurally sound, and sanitary. Alternatively, the seller may agree to make necessary repairs before closing.

For More Information

For more detailed information on VA appraisals and requirements, you can visit the VA’s official website or contact a qualified appraiser.