Buying a home is likely one of the biggest financial decisions you’ll make in your life. When getting a mortgage, homebuyers have lots of options, including conventional, FHA, and VA loans. VA loans are mortgage options specifically for veterans, active-duty service members, and surviving spouses. They come with many benefits like no down payment and no mortgage insurance requirements. But do VA loans require a home inspection?
What is a VA Loan?
VA loans are mortgage products guaranteed by the U.S. Department of Veterans Affairs. Their purpose is to help eligible borrowers buy, build, repair, retain, or adapt a home for their own personal occupancy.
Some key features of VA loans include
- Available to veterans, active duty service members, and surviving spouses
- Requires no down payment
- No monthly mortgage insurance premiums
- Competitive interest rates
- Can be used for new construction and renovations
- Allows for seller contributions for closing costs
VA loans are provided by private lenders but guaranteed by the VA. This guarantees protects the lender from loss if the borrower defaults on the loan.
VA Loan Requirements
To be eligible for a VA loan, you must
- Be a veteran who served at least 90 days of active duty during wartime
- Be an active duty service member with at least 181 days of continuous service
- Be the surviving spouse of a veteran who died in service or from a service-connected disability
In addition to borrower eligibility requirements, the property itself must meet certain standards set by the VA. These are known as VA minimum property requirements (MPRs).
MPRs relate to:
- Basic safety and structural soundness
- Functionality of plumbing, electric, heating systems
- Proper zoning and legal compliance
So while the VA doesn’t require a home inspection, the property must meet all MPRs to be eligible for a VA loan.
The VA Appraisal
Instead of requiring a buyer-paid home inspection, the VA has appraisers inspect and evaluate the property. VA appraisers are specially trained to complete Minimum Property Requirements inspections.
As part of every VA loan, an appraisal must be completed by a VA-approved appraiser. The appraiser will
- Inspect the interior and exterior of the property
- Take photos to document condition
- Note any repairs needed to meet MPRs
- Provide an as-is market value estimate
VA appraisals are very comprehensive. In addition to verifying the home meets MPRs, the report will include:
- Square footage measurements
- Detailed description of rooms, bedrooms, baths
- List of features like pool, fireplace, patio
- Assessment of overall condition
The appraiser notes any deficiencies compared to MPRs. If repairs are required, the appraisal is made contingent or “subject to” completion of the repairs by a licensed contractor.
Are Home Inspections Recommended?
While the VA doesn’t require a home inspection, they are strongly recommended. The VA appraisal focuses on safety and soundness but isn’t as detailed as a typical home inspection.
A home inspection completed by a licensed home inspector can uncover issues that a VA appraiser may miss. For example, a home inspection may:
- Provide detailed reports on all home systems
- Include appliance testing
- Assess functionality of HVAC, electrical, plumbing
- Identify minor repairs needed
Many buyers choose to get both a VA appraisal and home inspection. The VA appraisal ensures MPRs are met while the inspection provides more comprehensive condition information.
Most lenders allow closing costs like home inspections to be financed into the loan amount. Home inspections usually cost $300-$500.
Key Takeaways
The VA doesn’t require home inspections for VA loans, but they are recommended. Key points:
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VA loans must meet Minimum Property Requirements
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A VA appraisal will identify any repairs needed to meet MPRs
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Home inspections are still recommended for more detailed analysis
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Common to get both VA appraisal and home inspection
Does A VA Loan Require A Home Inspection?
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VA Minimum Property Requirements
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FAQ
What will make a house fail VA inspection?
What will not pass a VA appraisal?
What does the VA look for in an inspection?
What are red flags for VA loans?
Is a VA appraisal the same as a home inspection?
Again, it’s important to understand that the VA appraisal isn’t the same thing as a home inspection. A home inspection is a more detailed and granular look at the property. Home inspections can uncover defects, problems and possible looming issues that appraisals might not.
Do VA loans require a home inspection?
In her spare time, Miranda enjoys traveling, actively engages in the entrepreneurial community, and savors a perfectly brewed cup of coffee. VA loans don’t require a home inspection, but they do require an appraisal to ensure a property is livable. Learn more about VA loan appraisal requirements.
How much does a VA Home Inspection Cost?
According to the U.S. Department of Housing and Urban Development, anywhere from $300 to $500 for a home inspection is typical. A VA-assigned appraiser checks the property value and its compliance with the long list of VA loan appraisal requirements, which determines the property’s eligibility for a VA loan.
Do VA Home Loans require an appraisal?
VA home loans, like most mortgage-loan transactions involving a new purchase loan, require an appraisal. The VA appraisal process is sometimes referred to as an inspection, which often misleads homebuyers. Here’s a look at the differences between a home inspection and a VA appraisal. » MORE: Service members and Veterans can buy a home with $0 down