A home inspection provides an in-depth look at a property to inform prospective buyers as much as possible before they commit to purchasing a home. Many real estate agents recommend getting a professional home inspection lined up as soon as youre under contract with a seller.
As a VA loan borrower, you may need clarification about the difference between a home inspection and a VA appraisal. A home inspection is much more granular and detailed than an appraisal. Unlike the appraisal, a home inspection isnt mandatory, but that doesnt mean you shouldnt get one.
A professional home inspection alerts you of any flaws before the deal is done and allows you to renegotiate or walk away from the purchase contract. Read on to learn how a home inspection can give you peace of mind during the VA homebuying process.
If you’re a veteran or active military looking to buy a home using a VA loan, it’s important to understand the home inspection requirements. While VA loans offer great benefits like no down payment and flexible credit guidelines, the Department of Veterans Affairs does have minimum property requirements (MPRs) to ensure veterans don’t end up with a substandard or unsafe home.
In this comprehensive guide, we’ll cover everything you need to know about VA home inspections, including:
- The difference between a VA inspection and appraisal
- A complete list of the VA minimum property requirements
- What happens if a home fails inspection
- Tips for ensuring your home passes the VA requirements
VA Inspection vs Appraisal: What’s the Difference?
First, it’s important to understand the difference between a VA inspection and a VA appraisal
A VA appraisal is required for every VA loan to establish the home’s value and condition The appraisal ensures the home meets the minimum property requirements,
A VA inspection goes above and beyond the appraisal to thoroughly examine all aspects of the home While not required, a home inspection is highly recommended to protect VA borrowers
So in short:
- VA appraisal – Required to value home and confirm MPRs are met
- VA inspection – Optional but recommended for in-depth analysis
Now let’s take a closer look at what exactly those minimum property requirements entail.
Complete List of VA Minimum Property Requirements
The VA MPRs cover everything from safety and structural soundness to water supply and sewer disposal. VA appraisers will check for compliance with the following key requirements:
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Heating: Home must be able to maintain a temperature of at least 50 degrees Fahrenheit during cold months.
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Electricity: All rooms must have proper electrical wiring and outlets.
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Plumbing: Functional water supply, drainage, and sanitary facilities throughout home.
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Ventilation: Attics and crawl spaces properly ventilated.
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Roofing: No visible defects or trapped moisture. Roof must have reasonable future utility.
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Foundation: No visible cracks or signs of instability. Basement free of dampness.
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Access: Home must be accessible from a public or private road.
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Environmental: No environmental threats like mudslides or underground fuel tanks nearby.
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Zoning: Home must comply with all zoning ordinances.
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Pests: No wood destroying insects, dry rot or fungus present.
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Lead paint: No chipping or peeling paint on homes built before 1978.
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Smoke detectors: Functional smoke detectors required on each floor.
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Egress: Bedrooms must have adequate emergency escape options in case of fire.
This covers the major requirements, but the full MPR guidelines contain over 30 criteria spanning 8 pages!
Suffice to say, the VA does not mess around when it comes to protecting veterans from buying substandard homes. Their requirements are strict for good reason.
What if a Home Fails VA Inspection?
Now you might be wondering – what if a home you want to buy fails the VA inspection? Is there any recourse?
The good news is there are options if your dream home doesn’t pass the MPRs. Here are a few:
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Request MPR waivers – The seller can formally request the VA waive certain repairs. This may be approved if issues are minor.
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Make repairs – Sellers can fix MPR deficiencies prior to closing and get the home re-inspected.
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Use escrow – Buyer can place repair funds in escrow and complete MPR repairs after closing.
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Switch loans – If repairs are too costly, buyer may need to explore conventional loan options.
While possible to buy a home needing repairs, it introduces hassle and uncertainty. Your best bet is finding a move-in ready home meeting VA guidelines upfront.
Tips for Ensuring Your Home Passes VA Inspection
As the buyer, there are several things you can do to set your VA loan up for inspection success:
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Get a pre-inspection – Hire an inspector to identify any issues before making an offer. Gives you power to negotiate repairs.
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Review disclosures – Read the seller’s disclosure form for any red flags they disclosed upfront.
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Ask about permits – Ensure the seller pulled permits for any renovations or room additions. Unpermitted work can cause VA denial.
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Research the area – Be aware of potential hazards like power lines, pipelines, flood zones, and other environmental issues.
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Leave a cushion – Don’t spend every last dollar of your VA entitlement, in case unexpected repairs are needed.
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Review condo docs – For condos, look at homeowners association records for insight on property condition.
While VA loans offer veterans incredible home financing options, their strict property guidelines are meant to protect buyers from unsafe or unstable homes. By selecting a property prudently and anticipating any areas of MPR concern, you can feel confident your next home will pass VA inspection with ease.
Frequency of Entities
VA appraisal: 14
VA inspection: 13
MPRs: 16
New Construction Home Inspection
Just because a home is newly constructed doesnt mean that everything has been built safely or correctly. Shortcuts may have been taken, safety measures may have been skipped or improper materials may have been used. A home is a significant investment, so taking the necessary precautions is essential.
See a Sample Home Inspection Report
A sample inspection can tell you a lot about an inspectors abilities. Is the report clear and thorough? Are s of deficiencies included? Does the report make recommendations for potential homebuyers? Failure to include any of these items is a warning sign. Youre responsible for the cost of a home inspection and want to ensure youre getting your moneys worth.
VA Home Loans : Minimum Property and Inspection Requirements
FAQ
What does a VA home inspection consist of?
What will fail a VA home inspection?
What will not pass a VA appraisal?
Do you need a home inspection for a VA loan?
The inspection that’s required by the VA appraisal process is based on the VA’s Minimum Property Requirements, or MPRs. MPRs make sure the home you’re buying provides safety, security, and space. This process isn’t as thorough as a private home inspection which you, or your Realtor, can arrange. When is a home inspection required for VA loans?
Does a VA home appraiser inspect a home before a loan closes?
To make sure your new home meets minimum requirements, a VA home appraiser will inspect the property before your loan closes as a part of the VA appraisal process. The VA appraisal does not replace a standard home inspection – there are many important differences between VA appraisals and home inspections and both are recommended.
What is a VA home inspection & 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 the same, they have some differences.
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.