The Department of Veterans Affairs utilizes a series of Minimum Property Requirements (MPRs) that a home must meet to qualify for a VA loan. These property requirements help ensure that Veterans and military families have a safe, structurally sound and sanitary place to call home.
Before approving the mortgage, your VA lender will request an appraisal performed by an independent VA appraiser who will determine if the property satisfies these basic home requirements.
Purchasing a home is likely the biggest investment you’ll make in your lifetime That’s why it’s crucial to understand the minimum property requirements for VA loans when buying a home with VA financing.
As the #1 VA lender in the nation, we want to ensure your homebuying experience is smooth, stress-free, and secured with integrity. This comprehensive guide will walk you through everything you need to know about VA minimum property requirements.
An Overview of VA Loan Minimum Property Requirements
The Department of Veterans Affairs has established Minimum Property Requirements (MPRs) to protect the interests of veterans and lenders. These requirements ensure the home is a safe, structurally sound, and sanitary residence for the borrower.
Before approving a VA mortgage, the lender will request an appraisal by an independent VA appraiser The appraiser determines if the property satisfies the VA’s basic requirements
The MPRs cover factors like:
- Functioning electric, heating, and cooling systems
- Adequate roofing
- Sufficient living space
- Access to clean water and sanitation
- Accessibility from a public or private road
- Proper ventilation in attics and crawlspaces
Essentially, the MPRs aim to confirm the home is habitable and structurally sound. The full list contains over 40 requirements spanning site, structural, mechanical, and environmental factors.
While comprehensive, the MPRs are not the same as a professional home inspection. VA appraisers mainly visually assess the property’s condition. They don’t perform exhaustive tests on systems and components. As such, it’s smart for buyers to get an independent inspection as well.
If the appraiser finds issues, they can make the appraisal contingent on completing repairs. Ultimately, the property must comply with MPRs before closing on a VA loan.
Now let’s explore the complete list of VA minimum property requirements.
The Complete List of VA Loan Minimum Property Requirements
When assigned to appraise a property, the VA appraiser checks the home’s value and compliance with all VA loan appraisal requirements. This determines if the property is eligible for VA financing.
Once the appraisal is complete, the borrower receives a Notice of Value (NOV) valid for six months. The NOV will recommend getting an independent inspection if desired.
Below we break down the full list of minimum property requirements for VA loans:
Marketable Real Estate
To satisfy MPRs, the home must be a residential property up to four units in size. It should appeal to most buyers in the area.
There’s no limit on acreage. The property can include multiple parcels, but the appraisal is based on placing them on a single deed.
The home can be divided by a road or waterway as long as it doesn’t hurt utility or marketability.
Space Requirements
While the VA doesn’t mandate minimum square footage, the home must offer enough space for living, sleeping, cooking, hygiene, etc. Unique properties are fine if they follow codes and don’t reduce marketability.
Access
The property must be accessible year-round via a public or private road suited for all weather. For private roads, access rights must be protected by a recorded easement.
Encroachments
Encroachments on the property line must be resolved before loan approval.
Drainage and Topography
The property must have proper drainage, with no ponding or threats from mudslides, falling rocks, etc.
Geological Instability
The appraiser notes any potential instability like cracks, sinkholes, or foundation damage. Repairs may be required prior to closing.
Flood Hazard Area
Homes in FEMA flood zones or known flood areas don’t meet MPRs. Flood insurance is required if located in a Special Flood Hazard Area.
Coastal Barrier Resource System
Properties in Coastal Barrier Resource System zones don’t satisfy MPRs. These areas are protected from coastal storms.
Non-Residential Use
VA loans are for primary residences. Homes with one commercial unit may qualify if used mostly as a residence per zoning laws.
Zoning
The home must comply with zoning laws. Non-conforming “grandfathered” properties may be eligible if marketability isn’t impacted.
Code Enforcement
If repairs are needed to meet local codes once sold, the appraisal is contingent on completing them.
Utilities
All units must have access to electricity, gas, sewer, and safe drinking water.
Water Supply and Sanitation
All units need a continuous supply of potable water for drinking and sanitation. Sewage disposal must be safe.
Individual Water Supply
Homes with individual wells, cisterns, or hauled water may qualify if the supply is sufficient and safe, with filtration as needed.
Individual Sewage Disposal
Individual septic systems are acceptable if adequate and not a health risk. Outhouses must follow health authority guidance.
Shared Wells and Sewage
Shared water and sewage systems can satisfy MPRs with proper maintenance agreements and water supply.
Hazards
The home must be free of hazards that could affect health/safety or limit enjoyment of the property.
Defective Conditions
Issues like structural damage, pest infestation, or leakage must be repaired.
Mechanical Systems
Systems must appear safe to operate and protected from elements. The appraiser may require repairs for obvious damage.
Heating
The home should maintain 50°F in all plumbed areas. No A/C is required. Rules apply for fireplaces and non-vented heaters.
Leased Equipment
Leased mechanical equipment like tanks isn’t included in the appraisal. Adverse impacts of removal are considered.
Alternative Energy Equipment
Non-leased alternative energy systems are valued in the appraisal if marketable.
Roof Covering
Roofs must offer reasonable utility and economy of maintenance. Evidence of defects or moisture is unacceptable.
Attics
Attics must be checked for issues if readily accessible.
Crawl Spaces
Crawl spaces should be checked for moisture and ventilation but may not require entry.
Basements
Basements are checked for dampness, structural soundness, and working sump pumps.
Swimming Pools
Pool condition must be determined. If not viewable, it’s assumed functional. Issues require repairs.
Burglar Bars
Bars on windows must have quick-release mechanisms unless there’s an exterior door for bedroom egress.
Lead-Based Paint
Chipping exterior paint must be remediated before closing. Homes pre-1978 are presumed to contain lead paint.
Wood Destroying Pests
Evidence of termites, fungus, dry rot, etc. must be repaired. Termite inspection may be required.
Radon Gas
For new construction, radon-resistant techniques should be used per building codes.
Environmental Hazards
Potential issues like buried tanks must be corrected per regulations.
Stationary Tanks
Properties within 300 feet of 1,000+ gallon above/below ground flammable/explosive tanks require disclosure.
Mineral, Oil, and Gas Rights
Rights reservations and leases are reviewed for property encumbrances. Nearby activity may warrant disclosure.
High Voltage Lines
Homes can’t be located within power line easements. Other improvements in easements don’t contribute value. Proximity under 100 feet must be disclosed.
Pipelines
Homes within pipeline easements don’t meet MPRs. Improvements partially inside easements don’t add value. Proximity under 100 feet needs disclosure.
Airport Proximity
Nearby airports may negatively impact value. Comparable sales should be used. Buyers acknowledge hazards for homes in airport zones.
What Happens If a Home Fails VA Minimum Property Requirements?
The VA won’t approve loans for homes failing to meet MPRs. However, that doesn’t mean you must walk away from a home you love.
If the seller is willing to make repairs, they can fix MPR issues so the property complies and gets re-appraised for VA eligibility.
In certain cases, the VA may grant an MPR waiver.
MPR Waiver
Once the NOV is issued, borrowers can request the VA waive required repairs if the lender agrees. The home must still be safe, sound, and sanitary. Providing an inspection report supports the cause.
If approved, the waiver removes repairs from the NOV. However, the value reduction for unfinished repairs can impact the terms.
Sometimes repairs are finished after closing. The lender then holds funds in escrow until the work meets MPRs and the VA guarantees the loan.
Tips for Meeting VA Minimum Property Requirements
As a VA borrower, it’s smart to brush up on the MPR rules early when shopping for homes. Here are some tips for making sure properties meet requirements:
- Ask sellers to make repairs in advance – If
High-Pressure Gas and Liquid Petroleum Pipelines
Similarly, residential dwellings located within a high-pressure gas or liquid petroleum pipeline easement do not meet VA MPRs, and other improvements, even partially in the pipeline easement, cannot be considered in the appraisal valuation. Besides, if the property is within 100 feet of one of these easements, the appraiser must mention it in their report.
The proximity of an airport may affect the property negatively due to the noise and light pollution, as well as the increased possibility of a major accident, affecting the houses value. The appraiser should use comparable sales with the same airport influence whenever possible to evaluate its impact on the propertys marketability. In addition, the borrower must acknowledge in writing the location of the property in a Clear Zone (a.k.a. Runway Protection Zone) or an accident protection zone and its possible impact “upon the livability, safety, value, and marketability of the property” to obtain the NOV.
Property prices have increased rapidly in the past two years, making homeownership challenging to access for first-time home buyers and those on a limited income, even with the help of a no-down payment mortgage like a VA home loan. Therefore, many house hunters are considering alternative types of housing, such as manufactured homes (a.k.a. mobile homes) or modular homes, which may be more affordable than traditional properties.
These properties are typically considered the same way as conventionally built homes as long as they are secured on a permanent foundation and are subject to the same VA minimum property requirements listed above. They must be at least 400 sq. ft. for a single-wide and 700 sq. ft. for a double-wide manufactured home and be built in compliance with local codes and zoning requirements. In addition, the appraiser must use comparable sales which would appeal to the same buyer and may include modular homes, manufactured homes, but also conventionally built homes.
Geological or Soil Instability, Subsidence, and Sinkholes
Although some settlement is to be expected, the VA appraiser should report any signs of potential instability if they may affect the value or safety of the property, including cracks in the terrain, sinkholes, foundation damage, or settlement problems. In some cases, the appraisal may be made subject to repair by a licensed contractor (if there are foundation issues, for example.)
Minimum Property Requirements For VA Mortgage Loans
FAQ
What is the minimum square footage for a VA loan?
What makes a home eligible for a VA loan?
Why would a house not be VA approved?
What property cannot be financed with a VA loan?
What are VA loan minimum property requirements?
VA loan minimum property requirements are in place to ensure that Veterans and military service members have a safe, sanitary, and structurally secure home.
Does my property qualify for a VA loan?
The VA minimum property requirements for mortgages backed through the veterans benefits program can help determine whether the property you’re considering qualifies for a VA loan. Many veterans wonder whether the property they are eyeing qualifies for a VA loan. The VA Minimum Property Requirements or MPRs can help.
What are the minimum property requirements for a VA home?
For a VA home to meet the minimum property requirements, it must be in livable, safe, and sanitary condition, and be structurally sound. If you go under contract for the home, flooring will be required to be installed and reinspected by the VA Appraiser before final loan approval.
What is the minimum credit score for a VA loan?
Although the VA does not have a set minimum credit score requirement for its loan program, many lenders want to see a score of at least 580-620. Keep in mind, the VA loan program also has its own eligibility requirements and extensive property requirements that can be confusing for first-time home buyers.