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 When getting a mortgage, it pays to do your due diligence to ensure you are making a solid investment. This is especially true for VA loans, which are guaranteed by the government As a VA loan borrower, you want to be certain that the property you buy will serve as a safe and comfortable home for years to come. This raises an important question – do VA loans require inspections?
The short answer is no. VA loans do not mandate buyers get an inspection. However, they highly recommend you get one to protect your interests. Keep reading to better understand the inspection requirements and processes for VA loans.
VA Appraisals vs. Home Inspections
Before diving into whether VA loans need inspections, it’s important to understand the difference between a home inspection and a VA appraisal. These two assessments are often confused, but serve very distinct purposes.
A home inspection looks at the overall condition of the property. An inspector will evaluate things like the roof, foundation, electrical, HVAC and plumbing systems. They check that everything is in working order and meets local building codes. Home inspections help identify potential issues that may be deal breakers or need repair.
A VA appraisal primarily values the property to ensure it’s worth the loan amount. The appraiser will also make sure the home meets VA minimum property requirements (MPRs). MPRs establish basic health/safety standards. For example, having adequate water supply and sanitation facilities.
So while VA appraisals confirm eligibility, inspections deeply evaluate the home’s physical shape Let’s look closer at whether inspections are mandatory.
Are Inspections Required for VA Loans?
VA loans themselves do not require a home inspection. Again, they are optional for buyers. Some key points on VA loan inspection requirements:
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Inspections are recommended – Most lenders strongly suggest getting one, even though it’s not an official program rule. They want to protect your interests as the buyer.
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Appraisals don’t replace inspections – The VA appraisal is not as comprehensive. Opting out of an inspection leaves you more vulnerable.
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Buyers pay for inspections – Costs range from $300-$500+ depending on home size and location. This is out of pocket for the borrower.
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VA won’t guarantee unseen issues – If you skip the inspection and problems arise, the VA is not liable. The repair costs will fall on you.
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You can negotiate repairs – Inspections help you request fixes from the seller. This helps avoid future headaches.
Overall, a home inspection gives you greater peace of mind. It may seem like an unnecessary cost, but can save you money and stress later on. Be sure to factor inspection fees into your homebuying budget.
Can I Do a VA Appraisal Instead?
Some borrowers wonder whether they can use the VA appraisal in place of an inspection. However, this isn’t advisable for a few reasons:
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Appraisers aren’t inspectors – Their role is valuation, not evaluating physical conditions. They have much less training in this area.
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The scope is limited – Appraisers mainly check if the home meets minimum VA property standards. Inspections are far more thorough.
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Many issues can be missed – Home inspectors use specialized tools and methods to uncover problems. Appraisals are largely visual.
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Repairs usually aren’t mandated – Appraisers may note concerns but not require fixing them. Inspectors can negotiate repairs.
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There are no legal protections – If the appraiser misses something, you have little recourse. Home inspectors may be liable for negligence.
As you can see, relying solely on the VA appraisal leaves you quite exposed. The best bet is getting both the appraisal and inspection done.
What Do VA Appraisers Inspect For?
VA appraisers are primarily responsible for two things:
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Valuing the property
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Confirming it meets minimum VA property requirements
We already discussed valuation. As for MPRs, these ensure the home is safe, sanitary and structurally sound. Examples of items the VA appraiser will look for:
- Adequate roof and foundation
- Working electrical, heating and plumbing systems
- Access to clean water and sewer/septic facilities
- Absence of lead-based paint hazards
- No termite damage or wood rot
- Compliance with any zoning rules
If the appraiser finds issues with any MPRs, the seller will need to make repairs first. The VA won’t guarantee a loan on a home that doesn’t meet standards.
Beyond MPRs, appraisers may note any visible red flags. However, they likely won’t mandate fixes unless it impacts eligibility. This underscores the need for a separate inspection from a licensed home inspector.
Typical Home Inspection Process for VA Loans
If you decide to get a home inspection, here are some things to expect:
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Hire an inspector – Only use licensed professionals. Ask your real estate agent or lender for recommendations. Review credentials, certifications, online reviews and sample reports.
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Schedule it – Inspections are usually done toward the end of the buying process. Don’t have it done before there’s an accepted purchase agreement.
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Do a walkthrough – The inspector will evaluate interior and exterior components. Tag along so you understand any issues noted. This takes 2-3 hours on average.
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Get a report – The inspector provides a detailed writeup of findings, including photographs. Use this to request repairs from the seller.
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Negotiate fixes – Your real estate agent can facilitate negotiating corrections based on inspection results.
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Confirm repairs – Before closing, do a final walkthrough to verify any negotiated fixes were properly completed.
Home inspections provide invaluable insight into the property’s physical condition. For VA loans and any mortgage, they help ensure you make a sound, informed home purchase. Protect yourself and invest in this important step.
The Takeaway – Lean on VA Lender Guidance
At the end of the day, VA loans themselves don’t mandate inspections. Yet they remain vital to safeguard your interests as the buyer. Always lean on your lender’s guidance regarding inspections. Reputable VA lenders want to see you make wise choices.
While optional, inspections give you leverage to get issues corrected before closing. This prevents unplanned costs down the road. Don’t rely solely on the VA appraisal, as their focus is more limited. Spend the extra money upfront to avoid regrets later.
Purchasing a home is a big step. Make sure you have all the information needed to make a smart decision. Consult your lender, agent and inspector to understand the full picture before signing on the dotted line. Do your due diligence with VA loan requirements and beyond. This will lead to a smooth process and better long-term fulfillment in your new home.
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.
VA loan inspection requirements | Is it as bad as they say?
FAQ
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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.
What are the inspection requirements for a VA loan?
Inspection Requirements. In accordance with Title 38, Code of Federal Regulations (CFR), Section 36.4350(i), loan servicers are responsible for inspecting the property securing a VA-guaranteed loan immediately after becoming aware that its physical condition may be in jeopardy.
What are the benefits of a VA loan inspection?
The main benefit of a VA loan inspection – or any home inspection – is learning the ins and outs of your potential new home. An inspection helps you learn everything you can about the property and its systems. You can get a real, customizable mortgage solution based on your unique financial situation.
Can a VA loan be approved if a property is re-inspected?
The VA will only approve the loan on that property if the issues identified in the appraisal report are resolved. The property owner can agree to make the necessary repairs to bring the property up to the VA’s MPRs. Once the repairs are completed, a re-inspection will be conducted to ensure compliance.