VA loan appraisal requirements

When an appraiser looks at a property for VA loan eligibility, they do so based on strict minimum property requirements.

These MPRs must be met before the loan is guaranteed as they are established by the VA to protect the interests of veterans, lenders, servicers and the VA itself.

• To be eligible for a VA loan, a home must meet the following standards: Footnote⁵Opens overlay
• Roofing in good condition
• Functioning HVAC and electrical systems
• Accessibility from a private or public street
• Proper ventilation throughout the home, including in basements, crawl spaces and attics
• Adequate space for daily living activities, including sleeping, eating, dining, etc.
• Continuous access to water, sewage disposal and sanitation facilities
• No lead-based paint defects
• No wood with dry rot, fungus or wood-destroying insects (like termites)

What will fail a VA appraisal?

A VA appraisal can’t technically “fail,” since there’s no passing or failing involved in this process.

However, it can result in a low valuation if issues are present. This low valuation can cause a deal to fall through or require borrowers to come up with alternative solutions for moving forward, which we’ll discuss in more detail below.

Here are some common issues that result in low VA appraisals (or ones that don’t meet the MPRs):

• Safety hazards: Exposed wiring, broken stairs, missing handrails or other safety concerns
• Structural problems: Damage from water, damage on roof, cracks in foundation
• Pest infestation: Evidence of termites or other pests that destroy wood
• Inadequate heating: Non-functional or insufficient heating systems
• Non-functional utilities: Issues with plumbing, electricity or water systems
• Peeling paint: The potential for lead paint is particularly possible if the home was built before 1978.
• Improper ventilation: Lack of ventilation in attics, crawl spaces or other areas
• Water damage or mold: Visible signs of leaks, mold or mildew
• Non-operational appliances: Built-in appliances that are broken or missing
• Unpermitted additions: Rooms or structures added without proper permits
• Access issues: Inadequate access to the property, such as shared driveways without easements
• Non-compliance with zoning: Property use that doesn’t align with local zoning laws
• Unfinished construction: Incomplete renovations or unfinished areas of the home
• Health hazards: Presence of asbestos, radon or other environmental hazards