Before you can buy a home with a VA loan, it must meet what’s referred to as Minimum Property Requirements (MPRs). In case you’re unfamiliar with the guidelines, this guide provides an overview of what to expect during the inspection. It also provides guidance on how to move forward if the property you wish to purchase does not check all the boxes.
Overview of VA Loan Inspection Requirements
VA loan inspections, which are part of the VA appraisal, are completed to confirm the home is:
- Free of health and safety hazards
- Free of pest infestations or mold
- Structurally sounds with a strong foundation, roof and walls
You’ll spend between $300 and $500 to have it completed.
The Importance of Inspection in VA Loans
Borrowers deserve homes that are safe, livable and worth the investment. That’s why the VA doesn’t stop at the standard home appraisal used to assess the property’s market value. Instead, the VA appraiser must also confirm the home adheres to the VA’s minimum property requirements to help safeguard your health and financial investment.
How Does a VA Loan Inspection Differ from Other Loan Inspections?
When you apply for a traditional mortgage, an appraisal is required, but it’s only done to assess the property’s market value. Lenders generally don’t require a home inspection, though, so you’ll have to request one on your own to determine if the property’s condition is satisfactory.
However, as previously mentioned, the VA’s appraisal process is a bit more involved. The appraiser must review the home and create a detailed report indicating that it meets the MPRs and that the property is safe, sanitary, and structurally sound.
What to Expect During the Inspection Process
A licensed VA-assigned appraiser will show up to the property and evaluate it to ensure it meets the MPR. Here’s a step-by-step breakdown of what to expect during the VA appraisal process:
- Step 1: Your lender will order a home appraisal through the VA’s online system.
- Step 2: During the appraisal, the VA-approved appraiser assesses the home to determine its fair market value and ensure it meets the MPRs.
- Step 3: Once the appraisal is complete, you will receive a detailed report indicating whether the home meets VA standards.
- Step 4: If the report notates issues with the home, they must be rectified before the lender will approve the mortgage.
How Long Does the VA Loan Appraisal Usually Take?
The appraisal process generally takes one to two weeks to complete. Again, it’s different from the standard home inspection, but the VA-approved appraiser doesn’t inspect the home to determine if it meets the MPRs.
Appraisal vs. Inspection
An appraisal determines the property’s market value and certifies that it meets MPRs. By contrast, a home inspection provides a more in-depth review of the property’s condition. VA loans require a professional appraisal, while home inspections are suggested but not mandatory.
Detailed Aspects of VA Loan Appraisals: 2024 Checklist
Below is a closer look at what VA-approved appraisers are looking for:
Mechanical Systems
Home mechanical systems, such as heating, plumbing and electrical systems, must be safe, sound and fully operational. This ensures that the house is habitable and meets the occupants’ basic needs. Any issues with these systems must be addressed before the property can be approved.
Heating
The home must have an adequate heating system that is capable of maintaining a comfortable temperature during cold weather. This is crucial for the safety and comfort of the residents. The system should be in good working order and compliant with local building codes.
Water Supply
A safe and potable water supply is essential for any home. The property must have a reliable source of water that is free from contaminants. This requirement ensures that the occupants have access to clean water for drinking, cooking and bathing.
Sanitary Facilities
The home must be equipped with an acceptable sewage disposal system, whether connected to a municipal sewer or a private septic system. Proper sanitation facilities are a key component of a livable home, and they are important for maintaining hygiene and preventing health hazards.
Roofing
The home’s roof must be free of leaks and in good condition. A structurally sound roof protects the home’s interior from water damage and other weather-related issues. Any necessary repairs must be made to ensure the roof is watertight.
Crawl Spaces and Basements
Crawl spaces and basements should be dry and free from water intrusion. Proper drainage and ventilation are necessary to prevent mold and structural damage. These areas should be inspected, and any issues should be rectified to meet VA standards.
Ventilation
Adequate ventilation is required throughout the home to ensure a healthy living environment. Proper ventilation helps to control moisture levels and reduce the risk of mold growth. It also contributes to overall air quality within the home.
Electrical Systems
The electrical systems in the home must be safe and adequate for modern use. This includes having sufficient outlets, proper wiring, and operational circuit breakers. Confirming the electrical system is up to code helps prevent potential fire hazards.
Lead-Based Paint
It is essential to ensure that homes built before 1978 are free from lead-based paint hazards. Lead exposure can be harmful, especially to children, so any lead paint must be properly managed or removed. This requirement helps protect the health of the occupants.
Access and Encroachments
The property must provide safe and adequate access for the occupants. This includes confirming that there are no encroachments or legal issues that could impede access to the home. Clear and unobstructed pathways are essential for both daily living and emergency situations.
Property Location
The property’s location must be free from hazards or adverse conditions that could affect the safety and well-being of the occupants. This includes being situated away from flood zones, landslide areas, and other environmental risks. The location should also be conducive to a healthy living environment.
Hazards and Defective Conditions
The property must be free from any hazards or major defective conditions that could pose a risk to the occupants. This includes structural issues, pest infestations, and other safety concerns.
Non-Residential Use
The property must be primarily intended for residential use. While some properties may have mixed-use zoning, the primary purpose should be to provide occupants with a safe and comfortable living space. Non-residential elements should not dominate the property.
Space Requirements
The home must provide adequate living space for the occupants. This includes sufficient bedrooms, bathrooms, and common areas to comfortably accommodate the household. Adequate space is essential for ensuring a good quality of life and meeting the residents’ needs.
Health and Safety
The property must meet all health and safety standards to ensure a safe living environment. This includes compliance with local building codes and regulations. A fundamental requirement for VA loan approval is ensuring that the home is free from health and safety hazards.
Common Challenges and How to Overcome Them
If there are deficiencies, you must address them, or the VA may not approve the loan. Here are some options:
Negotiating Repairs
Contact the seller and tell them about the repairs that must be completed before the loan can be approved. Be sure to have the appraisal report handy as evidence, and share which items on the list are a priority.
To keep the lending process moving, the seller may agree to make the repairs, offer a credit towards the repair costs or reduce the sale price. Otherwise, you can walk away without penalty.
Re-inspection Process
If the seller agrees to make the necessary repairs, a re-inspection is required to confirm they are correctly completed. The VA requires a re-inspection to help prevent future disputes if repairs aren’t done properly, and in this case, the buyer can possibly request additional compensation.
The re-inspection process is the final step to confirm that all agreed-upon repairs have been completed satisfactorily. After the seller has addressed the deficiencies, a re-inspection is conducted to verify the quality and completeness of the repairs.
Frequently Asked Questions (FAQs) About VA Loan Inspection Requirements
No, VA loans do not require an inspection, but an appraisal by a VA-approved appraiser is mandatory. It’s done to determine the market value of the property and to confirm that it’s safe, sanitary and structurally sound.
Properties must meet MPRs to qualify for funding. Any issues or failures are noted in the appraiser’s report and must be addressed (through repairs or compensation) before the loan can close.
Again, the VA does not require an inspection, but the cost of the appraisal is covered by the buyer.
