VA Appraisal and Minimum Property Requirements
A VA appraisal confirms two things: the home is worth the contract price, and it meets the VA's Minimum Property Requirements (MPRs), meaning it is safe, structurally sound and sanitary. Your lender orders it through the VA. The result is a Notice of Value, and required repairs must be finished before closing.
Key Takeaways
- The VA assigns the appraiser. You cannot choose one.
- The appraisal checks value and condition against Minimum Property Requirements. It is not a home inspection.
- The Notice of Value sets the value the VA will guarantee against.
- Required repairs must be completed and verified before closing. A termite inspection may also be required on VA purchases, depending on the area and what the appraiser finds.
- If the value comes in low, you can renegotiate, bring cash, or request a reconsideration of value.
How does the VA appraisal work?
After your offer is accepted, we request the appraisal through the VA's system. The VA assigns an appraiser from its panel. The appraiser visits the home, takes measurements and photos, compares recent nearby sales, and reports a value and any required repairs. The VA issues the Notice of Value, and the loan amount cannot exceed what that value supports, except for the funding fee that may be financed.
The appraisal fee is a normal closing cost. The buyer may pay it, or a seller may agree to cover it within allowed concessions.
What are Minimum Property Requirements?
MPRs are the VA's baseline for a home it will help guarantee. The goal is a home that a family can safely live in today. The appraiser looks at:
- Safety. No hazards that threaten health or safety, such as exposed wiring, a missing handrail or unsafe stairs.
- Sanitation. Safe drinking water, working sewage or septic, and adequate heating.
- Structure. A sound roof, foundation, walls and floors, with no active leaks or serious damage.
- Access. Safe, permanent access to a public or approved private street.
- Utilities and systems. Operating electrical, plumbing and heating systems.
- Condition of finishes. Peeling paint on older homes can require repair because of lead-based paint concerns.
What kinds of repairs commonly come up?
| Issue | Why it gets flagged | Usual fix |
|---|---|---|
| Peeling or chipped paint | Health and safety, especially on older homes | Scrape, prime and repaint |
| Roof with limited remaining life or leaks | Weather protection | Repair, or a roofer's certification |
| Wood-destroying pests or damage | Structural soundness | Termite treatment and repair |
| Missing handrails or broken stairs | Safety | Install or repair |
| Non-working heater or water heater | Habitability | Repair or replace |
| Missing smoke or carbon monoxide alarms | Safety | Install |
The appraiser lists items the home must have fixed. A reinspection may be needed to confirm the work. Sellers often agree to handle these repairs, and you can write that into the purchase contract. See VA loans for home purchase and eligible property types.
What about the termite inspection?
A termite (wood-destroying pest) inspection may be required on VA purchase and cash-out loans, depending on the area and what the appraiser finds. It is not required on an IRRRL. If the inspector finds active infestation or damage, the work needs to be completed before closing. In California, sellers commonly provide a pest report, but VA rules about timing and who pays can vary, so ask your loan officer early.
What if the appraisal comes in low?
You have three main options:
- Renegotiate. Ask the seller to reduce the price to the appraised value.
- Bring cash. You can cover the gap with your own funds. The VA loan can only be based on the lower value.
- Request a Reconsideration of Value. Your lender can submit better comparable sales and an explanation. The appraiser must consider them, but there is no guarantee of a change.
You may also have a contract clause that lets you cancel. VA purchase contracts include an option clause tied to the appraised value. Talk to your agent about timing.
How is a VA appraisal different from an inspection?
A VA appraiser does not test every system or look in every corner. The report is for valuation and VA property standards. A licensed home inspector gives you a deeper look at roof, plumbing, electrical, HVAC and foundation. At Lendia, we recommend an inspection on every purchase. Read our guide to VA-eligible properties.
How can I keep the appraisal on schedule?
- Tell your agent at the start that you are using a VA loan.
- Make the home accessible, with utilities on, for the appraiser.
- Ask the listing agent for recent upgrades and permits.
- Build time in the contract for the appraisal and any repair reinspection.
- Respond right away to any condition request.
Related reading: VA purchase loan checklist.
At Lendia, we keep the appraisal on track
At Lendia, we order the appraisal early, watch it through to the Notice of Value, and help you decide what to do if the number or the repair list surprises you. Contact us or get a rate quote now.
Frequently Asked Questions
Can I choose the appraiser?
No. The VA assigns the appraiser from its panel.
Is a VA appraisal a home inspection?
No. It is not a substitute for a full inspection. We recommend getting one.
Who pays for required repairs?
It is negotiable. Sellers often agree to complete them. The buyer can also pay, as long as the work is done and verified before closing.
Can a VA loan buy a fixer-upper?
Only if the home meets MPRs at closing, or the required repairs are completed first. Ask your loan officer about renovation options.
How long is an appraisal valid?
The Notice of Value has a limited validity period. We track it so it does not expire before closing.
Rates and terms depend on your situation; approval requires qualification.
Talk to a Licensed Lendia California Loan Officer
At Lendia, we review your situation and show you the programs you qualify for.