$148.75 billion in VA loans were given out from the past 12 months up to the month of August. The loan is unique and you don’t have to pay any down payment with competitive interest rates. This is great for veterans and active service personnel to own a house.
There are some VA loan inspection requirements if you want to avail it. Since it is a government-backed loan the requirements are stricter. An appraiser will use VA loan inspection guidelines to ensure the home is safe and priced at the right market value.
The current mortgage rate stands at 6.38%, which has fallen from 7 in the past year. With the election results on the horizon, mortgage rates can go up or down. If you need help with your VA loan, then reAlpha can help you find vetted lenders.
The 8 VA Loan Inspection Requirements
To qualify for a VA loan, you need to meet the minimum property requirements. These VA loan requirements ensure that the home you want to purchase is safe and clean. Below listed are the VA loan criteria:
- Space requirements- The house should have adequate living space with living quarters, cooking, and bathrooms for your family. This doesn’t mean the house has to be large, just that it meets all your family's needs.
- Electrical, heating, and cooling systems- This is a key VA home loan eligibility criteria. Every house should have access to adequate utilities which include electrical, heating, and cooling systems.
- Roofing- The roofing of the house has to be in good condition and have at least 2 years of useful life. A standard appraisal only requires the roof to be in good condition.
- Hazards- VA loan guidelines state that the home should be free from any harmful hazards that can pose a health risk.
- Water supply and Drainage- The property must require year-round access to safe water. The area should also have a good drainage system so that there is no water damage to the property.
- Pest infestation, rot, and other signs of deterioration- A VA appraiser will check for any damage to the home due to pests or insects. Generally, home structures should be properly ventilated to prevent it.
- Pools- Pools are allowed for a VA loan. However, they must be in good condition to pass the VA inspection checklist.
- Proximity to airports- Another VA home inspection checklist that has to be ticked is to determine the distance to airports. If it's near airports the property has to comply with the noise and safety requirements needed to live near the airport.
These are VA home loan qualifications that can get you a loan easily.
VA Loan Inspection vs VA Home Appraisal
A VA loan inspection is like your regular home inspection. VA loan appraisal requirements include examining the condition of the plumbing, electrical, HVAC systems, and structural units. This is optional, but it can give buyers an insight into potential issues.
A VA appraisal is mandatory in all VA loans. Its major role is to determine the fair market value of the property. Further, it also helps to determine its compliance with VA’s minimum property requirements.
Difference Between a VA Appraisal vs. Home Inspection
You shouldn’t confuse a normal home inspection with a VA home appraisal. Let’s look at the difference between both of them.
| VA Appraisal | Home Inspection |
|---|---|
| It determines the fair market value and determines whether it aligns with the requested loan amount. | Accesses the conditions of the home and identifies problems in the property |
| It is one of the strict requirements for VA loan. | It is not mandated, but highly recommended to uncover any issues in the property |
| Identifies whether the house meets the VA minimum property requirements. | Gives a detailed report of the condition of the house. |
What Happens if a VA Home Appraisal Fails?
If the VA home loan requirements are not met, then there are three courses of action you can take.
1. Home Doesn’t Meet Minimum Property Requirements
In this case, you can ask the seller to undertake repairs, so it meets VA loans requirements. There will be a reinspection conducted once the repairs are done to ensure compliance.
If the house is deemed safe, you can ask for an MPR waiver. This requires approval from the VA and the mortgage lender. If it doesn’t work, you can look at other properties.
2. Appraisal Value is Lower
If the appraisal value is lower than the agreed-upon price, you can negotiate with the seller to lower the price. If they don’t agree, you can pay the difference in cash. However, this is something to be concerned about.
Another thing you can do is to incorporate tidewater that incorporates more data in the appraiser’s review. You can also ask for a Reconsideration of Value (ROV), which appeals to the low appraisal.
Should You Go for a VA Home Appraisal?
For a veteran, a VA home appraisal can help them to purchase their home. However, it is important to ensure that they understand VA appraisals and that they meet VA standards.
In case, the home fails appraisals, you can ask the seller to make repairs or get an MPR waiver. If the appraisal price is lower, you can negotiate or cover the difference. If you want a reliable lender, check reAlpha where you can get vetted lenders.
Frequently Asked Questions About VA Loan Inspection Requirements
What are the basic requirements for VA home loans?
To get a VA loan, you have to be a veteran or active-duty personnel. You need to get an eligibility certificate and get VA’s MPR to qualify for the loan.
Is a down payment required for a VA loan?
No, you don’t have to pay any down payment on a VA loan. Further, they have competitive interest rates.
What type of properties can be purchased with VA loans?
VA loans can be used to purchase basically a primary residence. This includes single-family homes, manufactured homes, and condos.
