What does a VA appraiser look for?

Any home financed with the VA loan benefit must meet set of criteria established by the Department of Veterans Affairs called the ‘minimum property requirements” (MPRs). In order to determine if a home meets the VA MPRs, borrowers are required to get an appraisal done by someone approved by the VA.

Essentially, the appraiser must ensure that the property is safe, livable, sanitary, and marketable. An appraiser also makes sure that the property is actually worth the price agreed on in the contract. If the property does not meet the VA MPRs, any repairs needed to get the property approved must be completed before the loan can close. The VA has typically stricter appraisal requirements than other types of loans because they want to ensure that the Veteran and their family are living in a safe home. 

What exactly are the minimum property requirements that an appraiser looks for? Well remember, the goal of the VA is to get veterans and their families into safe, livable homes. They determine the quality of the home based on the following criteria: 

1. The property is primarily residential in nature 

Because the VA home loan program is designed to increase homeownership among Veterans, the purpose of the property must be primarily for residential living.  

2. There must be enough space for the veteran (and their family) to live, cook, and sleep. 

3. The property must have clean drinking water, a water heater, and working sewage systems 

If the property has a cesspool or septic tank, it could still be approved. In this case, the cesspool/septic tank must be in good, working condition, and typical for the area.  

4. Typically the property must have a heating system capable of warming the interior to at least 50 degrees Fahrenheit 

Exceptions are made for certain warm climates, like Hawaii.  

5. All mechanical systems (like heating, cooling, electric, and water) must be in good, working condition 

This is why VA loans are not typically used for tear downs or renovation/”project” homes, as these types of properties lack functioning mechanical infrastructure.  

6. All architectural infrastructure must be in good condition and be expected to stay that way for the foreseeable future

The roof, the foundation, crawl spaces, basements, attics, and the like must all be structurally sound and free of mold or water damage.  

7. The property must be accessible from the street.  

This may seem like a given, but things like a damaged driveway that impede your ability to access the home can stall an approval. 

8. The property must pass a pest inspection. 

Just like the VA does not want you in a structurally unsound home, they do not want you in a home infested with termites or any other damaging pests. If there is termite damage (or termites) found, repairs or treatment will be required before the property can be approved. 

The VA minimum property requirements ensure that the Veteran is investing in a sound, safe home. But it is important to note that the VA appraisal is not the same as a home inspection. While there is some overlap in the areas of the property that are assessed and language used. An appraiser does not necessarily need to be an expert in plumbing, heating, or electrical systems. They will usually only assess what is readily observable. For this reason, it is still in your best interest to hire a qualified home inspector to assess the quality of the property.