If you are looking to learn about VA loan inspection requirements, you won’t find any. Truth be told, the VA loan system does not require home inspections before deciding whether you are eligible or not. They do, however, require appraisals, but that is a different kettle of fish. We will explain that later. What’s important to recognize is that the home inspection protects you, veterans or active-duty military members, as you hunt for a home. So don’t skip this step.
If the VA loan process does not have VA loan inspection requirements, why bother? Because the VA is only half of the equation of finding and qualifying for a mortgage for your new home. The other half of the equation is a VA-qualified lender, a private mortgage broker or bank, who actually lend you the money. The U.S. Department of Veterans Affairs only insures and guarantees the loan. We say “only” but that insurance is a pretty big deal.
Private lenders are going to request and require additional information about your life and your purchase in order to approve the mortgage. Credit scores, credit history, income history and loan history are things the private lender will likely require before finalizing a mortgage with you. VA loan inspection requirements may become part of the mortgage lenders expectations for you to qualify for a loan.
What they won’t require, when the VA insures your mortgage, is the down payment and private mortgage insurance (PMI), and those two elements will save you thousands of dollars up front and thousands more over the life of your mortgage when compared to a conventional loan. In addition, you will probably get a lower interest rate on your loan with the federal government VA guarantee, saving you money every month.
Purchasing a home is likely one of the biggest financial decisions you’ll make in your lifetime. As a veteran or active military member, you’ve earned benefits to make this process easier thanks to VA loans. VA loans help service members purchase a home with little to no down payment. But do VA loans require a home inspection like other types of mortgages?
The short answer is no. VA loans themselves don’t mandate a home inspection. However, VA lenders almost always recommend getting one before closing on a property. Let’s explore why home inspections matter and how they work with VA loans.
What Is A Home Inspection?
A home inspection is when a licensed professional thoroughly examines the condition of a home They check for any issues that may be undisclosed by the seller or not easily noticed by the naked eye
Home inspectors evaluate items like
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Roof, attic and exterior
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Electrical, heating and plumbing systems
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Foundation and basement
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Potential safety hazards like mold, asbestos and lead
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Functionality of appliances, garage doors, windows and more
After the inspection, you receive a detailed report summarizing any detected problems or maintenance needs. Inspections help uncover expensive repairs so you can negotiate with the seller before closing. They also alert you to any immediate safety issues.
Why Get A Home Inspection With A VA Loan?
VA lenders don’t require a home inspection because the VA appraisal process checks for basic safety and soundness. VA appraisers ensure properties meet the VA’s Minimum Property Requirements (MPRs).
MPRs cover things like:
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Adequate roof, foundation and utilities
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Lack of health hazards like lead-based paint
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Working electric, heating and plumbing systems
So in theory, you could close on a VA loan without ever getting a home inspection. But just because you can doesn’t mean you should. Here are four key reasons to get an inspection with a VA loan:
1. More comprehensive than an appraisal
VA appraisals focus mainly on safety and structural integrity. A home inspection dives deeper into functionality and maintenance needs. Inspectors can catch issues appraisers easily overlook.
2. Provides peace of mind
Even if the VA appraisal goes smoothly, inspections add an extra layer of protection. Knowing the full condition of your future home brings peace of mind.
3. Opportunity to negotiate repairs
If an inspection uncovers problems, you can request the seller make repairs before closing. This potentially saves you thousands in future maintenance costs.
4. Potentially avoids nasty surprises
Say the inspection flags urgent repairs the seller refuses to make. This gives you the chance to walk away and avoid inheriting those headaches.
For these reasons, home inspections provide immense value with VA loans despite not being required. They’re highly recommended by most lenders.
How Much Does A Home Inspection Cost?
Home inspection costs range from $300-$500 on average, according to the U.S. Department of Housing and Urban Development (HUD). The exact rate depends on your location, inspector and size of the home. VA loans don’t cover this fee, so you’ll pay out of pocket. But consider it a wise investment in your new property.
Some key factors that influence the cost of home inspections:
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Location: Urban and coastal areas tend to have higher rates compared to rural regions.
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Square footage: Larger homes naturally take more time and effort to inspect.
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Age of home: Inspectors charge more for older homes since they require extra scrutiny.
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Specialized tests: Optional add-ons like radon, mold and water quality tests add to the base cost.
As long as you hire a licensed pro, home inspections deliver immense value for the price. Shop around for the best rate, but don’t sacrifice quality by hiring the cheapest inspector you can find. Reviews, certifications and experience all matter.
When To Get A Home Inspection With A VA Loan
Ideally, you should get an inspection as soon as possible once your VA loan offer is accepted. Two key times during the home buying process for inspections are:
After the home appraisal: VA lenders order an appraisal after your offer is approved. If the home passes the VA Minimum Property Requirements, move forward with a home inspection for further due diligence.
During the option period: Many home purchase contracts allow an inspection during the option period, which is usually 5-10 days after mutual acceptance. This gives you the option to renegotiate or walk away based on inspection results.
Aim to get an inspection within two weeks of the accepted offer at the latest. This ensures ample time to address any concerns before closing day.
5 Tips For A Smooth Home Inspection
Follow these tips to get the most out of your VA loan home inspection:
1. Thoroughly vet inspectors
Carefully research licenses, experience, reviews and certifications when choosing an inspector. Look for ones familiar with local building codes.
2. Be present during the inspection
This allows you to ask questions in real time and learn about the home’s systems. If unable to attend, request permission to have a family member or friend present.
3. Keep an open mind
No home is perfect. Focus on major red flags versus nitpicking minor flaws.
4. Request sewer scope
Sewer line inspections aren’t always standard. Request a sewer scope to check this expensive system.
5. Ask about warranties
Some inspectors provide repair warranties for items they miss. This adds extra financial protection.
Home inspections require an extra upfront expense with VA loans. But identifying problems before move-in can potentially save thousands in future headaches. Work with your lender to make sure you schedule a thorough inspection at the ideal time during the buying process.
The Bottom Line
VA loans themselves don’t mandate home inspections like many other mortgage programs. However, you should absolutely plan to get one for maximum protection. Home inspections provide immense peace of mind and allow you to enter a purchase with total confidence. They help ensure your VA loan delivers the dream home you deserve.
It’s Just a Regular Inspection
Chances are your private lender you work with is going to require a home inspection of the property you want to buy, so don’t worry too much about missing this step. What kinds of things are involved in a typical, traditional inspection? There we turn to the International Association of Certified Home Inspectors (InterNACHI). They have two lists.
The first list is an overview of the major elements a home inspector will be looking at. It includes things such as:
- Heating system inspection
- Cooling systems and air conditioning inspection
- Home Energy inspection
- Mold and dry rot inspection
- Pool and spa inspection
- Radon inspection
- Sewer inspection
- Pest inspection (including wood-destroying insects)
- Electrical systems inspection
- Appliance inspection
- Fireplace and chimney inspection
- Plumbing and water heater inspection
The second list is more involved. It’s a comprehensive checklist from InterNACHI that goes for 31 pages listing all of the things an inspector checks.
There is also our own list of things you should ask your inspectors before, during and after the inspection happens.
No VA Loan Inspection Requirements, But an Appraisal Is
Finding information about VA home loan inspection requirements can be confusing because a lot of folks think a home inspection is the same as a home property appraisal. It’s easy to do. There is a lot of overlap between what a home inspector looks for when he or she is evaluating your property and what a home appraiser is looking for. But the differences are important.
The first fact to remember is that the VA loan program requirements do include an appraisal. You need to hire and pay for a VA appraisal process. Its requirements can be found on the VA appraisal checklist.
The second thing to remember is the difference between an appraisal and an inspection.
The appraiser is looking at the home you want to buy and evaluating it for the property’s value — it’s appraised value. They want to know what the house is worth in terms of dollars and cents. With that in mind, they will look at comparable similar homes, bedrooms, baths, square footage and everything that affects the value of the house. The appraiser is doing his job to protect the interests of the bank. They don’t want to lend you more money than the value of the property, for obvious reasons.
The inspector, on the other hand, is there to make sure your house is safe and up to local building codes. They typically dig deeper into the property and its structural issues. Inspectors are there to protect you from buying a money pit, a property that has so many hidden major issues that you will need to fix that it will create major financial and safety issues for you in the future.
Home appraisers protect the lender; while home inspectors protect you and your family.
So even though there are no VA loan home inspection requirements, it’s still a good idea to get one for your own protection.
It’s important to note that there will be some overlap in what appraisers and inspectors are looking for. For example, they will both look at the roof and any structural problems. Both will be concerned that the appliances are in good condition. Both will evaluate plumbing for potential problems. They will simply be looking at the property for different reasons.
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