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.
Buying a home is likely one of the biggest purchases you’ll ever make. As a veteran exploring your VA loan benefits, you want to make sure your new home is safe, livable, and a solid investment. This is where home inspections come in.
I know – home inspections sound boring. But trust me, they can save you from making the mistake of your life!
In this guide, we’ll cover everything you need to know about home inspections for VA loans. Here’s what we’ll discuss:
- What is a home inspection?
- Do VA loans require a home inspection?
- What are the VA’s Minimum Property Requirements?
- Should you get a home inspection with a VA loan?
- How much does a home inspection cost?
- What happens if a home fails inspection?
- Tips for finding a great home inspector
Let’s get started!
What is a Home Inspection?
A home inspection is when a professional home inspector comes to the property you want to buy. They inspect the home top to bottom inside and out to look for any issues or defects.
The inspector will check important systems and features like
- Roof
- Attic
- Walls, floors, foundation
- Electrical, plumbing, and HVAC systems
- Kitchen appliances
- Basement, crawlspace, and attic
- Pools, patios, and outbuildings
After the inspection, you’ll get a detailed report summarizing the home’s condition. The report will call out any repairs needed and give recommendations.
Home inspections help buyers understand the true condition of a home before purchase. They can uncover hidden defects that could cost you down the road.
Do VA Loans Require a Home Inspection?
The VA does not require buyers to get a traditional home inspection. But the VA does have its own set of home standards that properties must meet.
These are called the VA Minimum Property Requirements, or MPRs. They are a set of basic requirements related to:
- Safety
- Livability
- Structural soundness
When you apply for a VA loan, the property will be appraised by a VA-approved appraiser. The appraiser ensures the home meets all the VA’s Minimum Property Requirements.
So in short – the VA does not require a regular home inspection. But they do require the appraisal, which checks for major issues.
Overview of the VA’s Minimum Property Requirements
The VA’s Minimum Property Requirements aim to protect the safety and health of the veteran homebuyer.
Here are some key systems and standards the MPRs cover:
Utilities: The home must have electricity, heating, water and sewage. All must be safe, functioning, and meet local codes.
Access: The property must be accessible via an all-weather road.
Structural: The home’s roof, walls, foundation and structure must be sound. No major defects.
Pests: The home must be free of termites, wood-boring insects, mold and fungus.
Bedrooms: Bedrooms must have adequate light, ventilation, and egress.
Safety: The home must have smoke detectors, handrails on stairs, and other safety features.
Zoning: The home must comply with all zoning laws and restrictions.
Environmental: The home must be free of environmental hazards like flood zones, noise pollution, and more.
The full list contains over 40 requirements spanning 12 pages! The VA appraiser will check the home against each one.
Now you understand the purpose of the VA’s Minimum Property Requirements. But should you also get a home inspection?
Should You Get a Home Inspection with a VA Loan?
I always recommend buyers get a professional home inspection, even when using a VA loan. Here are some key reasons why:
1. Added protection for you. VA appraisals focus on safety and function. A home inspection provides a comprehensive, unbiased report on the home’s physical condition. This gives you extra peace of mind before investing in a property.
2. The MPRs have gaps. While extensive, the VA’s requirements cannot catch every single issue. For example, they do not require testing appliances, HVAC systems, pools, or many other features. You want the reassurance everything works properly and efficiently.
3. Inspections uncover minor defects. The MPRs aim to find major safety hazards and defects. But an inspector will also spot smaller issues, like an aging water heater, faulty outlet, or shoddy DIY work. These minor issues can turn into costly repairs down the road. It’s best to know about them now.
4. Negotiating power. The inspection report gives you evidence to negotiate credits or repairs with the seller. You can make your VA loan offer contingent on certain fixes being made.
5. Peace of mind. Perhaps most importantly, a home inspection gives you peace of mind about the biggest purchase of your life. You’ll know your new home’s true condition before moving your family into it.
I always tell buyers: think of a home inspection like getting a mechanic’s opinion when buying a used car. You wouldn’t buy a used car without having a mechanic look under the hood first, right? Your home is an even bigger investment – protect yourself with an inspection.
How Much Does a Home Inspection Cost?
Home inspection costs range from $300-$500 on average. They rarely exceed $500 unless it’s a uniquely large or complex property.
The exact price depends on factors like:
- Home size
- Home age and type
- Located in an urban or rural area
- Which features are inspected (pool, outbuildings, etc)
Some key things to keep in mind about the cost:
-
Inspection fees are paid separately by the buyer. They don’t come out of your VA loan proceeds.
-
In most cases, inspection costs are a few hundred dollars. Compare that to buying a money pit riddled with problems! A few hundred bucks is worth it for the peace of mind.
-
Some inspectors offer discounts and deals for veterans and first-time buyers. Ask about this when booking.
-
Build the estimated cost into your homebuying budget early on. This ensures you have funds set aside when it’s time to inspect properties.
If you’re worried about the costs, remember that a home inspection is an investment that can save you much larger expenses in the future.
What Happens If the Home Fails Inspection?
There are two scenarios here:
1. The home fails to meet the VA Minimum Property Requirements
If this happens, you have a few options:
-
Ask the seller to make repairs so the home passes the VA appraisal. After repairs, the home must be re-inspected to confirm it now meets the MPRs.
-
Apply for a “waiver” of the failed requirement. These are granted on a case-by-case basis. The home still must meet basic safety and livability standards.
-
Walk away from the purchase if repairs aren’t possible or the VA won’t provide a waiver. Then you’d restart the homebuying process.
2. The inspector finds issues during your elective home inspection.
If an issue arises during your own inspection, you can:
-
Ask the seller to make repairs before closing. Get repair estimates to support your request.
-
Negotiate credits or a lower sales price to offset future repair costs.
-
Walk away if the issues are severe or too expensive to take on
-
Waive the defects and buy the home “as-is” if defects are minor. This is fairly common.
The right choice depends on the type and severity of issues uncovered. Have an open conversation with your agent and lender about the best options.
Pro tip: Make your VA purchase offer “contingent” on a home inspection. This gives you an out if major issues arise. You can always remove the contingency later after a clean inspection.
6 Tips for Finding a Great Home Inspector
If you opt to get an inspection, make sure to pick the right inspector. Here are my tips:
1. Check licensing: In most states, home inspectors must hold a license. Verify yours is licensed in your state.
2. Look for experience: Choose an inspector with at least 5 years of experience and hundreds of inspections completed. They’ve seen everything!
3. Read online reviews: Check Google, Yelp and other sites. Look for consistently positive feedback.
4. Ask for a sample report: Quality can vary greatly. Review a sample report to get a feel for the inspector’s thoroughness.
5. Consider specialties: Some inspectors specialize in older homes, green homes, or those with unique systems. Match specialties to your property type.
6. Trust your gut: You want an inspector who is detailed, patient and takes time to explain things. Make sure your personalities click!
Taking the time to find the right inspector is key to getting a thorough, quality inspection report. Don’t just go with the cheapest option – go with someone
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.
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.
VA loan inspection requirements | Is it as bad as they say?
Is a home inspection required for VA loans?
VA loans do not require a home inspection, but they do require an appraisal to ensure the property is livable.
What is the cost of a VA Home Inspection?
The cost for a VA home inspection is typically anywhere from $300 to $500. A VA-assigned appraiser checks the property’s compliance with the long list of VA loan appraisal requirements, which determines the property’s eligibility for a VA loan. The property value is also assessed during this inspection.
Does a VA home appraiser inspect a home before a loan closes?
A VA home appraiser will inspect the property before your loan closes as part of the VA appraisal process to ensure it meets minimum requirements. The VA appraisal inspects the property’s value, not its condition, and it doesn’t replace a standard home inspection.
What is a VA home inspection and a VA appraisal?
VA loans are designed to help eligible veterans, active-duty service members and surviving spouses achieve homeownership. When taking out a VA loan, you’ll likely come across the terms “VA home inspection” and “VA appraisal”. While the two assessments sound similar, they have some differences.