VA Loan Home Inspection Requirements: What Every Veteran Needs to Know

Purchasing a home is likely one of the biggest financial decisions you’ll ever make When using a VA loan, there are specific property requirements and inspections that help ensure the home is safe, structurally sound, and a good investment. Understanding these VA loan home inspection requirements is crucial for veterans navigating the home buying process

An Overview of VA Loan Requirements

The Department of Veterans Affairs (VA) has established Minimum Property Requirements (MPRs) that homes must meet in order to be eligible for a VA-backed loan. These requirements help protect the interests of veterans, lenders servicers and the VA.

The overall purpose of the MPRs is to ensure that VA-financed properties are:

• Safe
• Structurally sound
• Sanitary

The requirements also address issues related to the location of the property and any legal considerations.

VA Appraisals vs Home Inspections

An important distinction regarding VA loan requirements is the difference between a VA appraisal and a professional home inspection.

A VA appraisal is performed by a VA-assigned fee appraiser to determine the market value of the home. The appraiser will note any repairs needed for the home to meet MPRs and include the value of those repairs in the final valuation. However, VA appraisers do not conduct comprehensive testing of systems and components like a home inspector does.

Once a veteran receives the VA Notice of Value (NOV) based on the appraisal, the VA includes a recommendation that the veteran consider obtaining a professional home inspection. This allows the buyer to gain a deeper understanding of the condition of the home prior to closing on the loan.

Minimum Property Requirements (MPRs)

The VA’s MPR document lists the minimum standards needed to meet requirements in order for a loan to be eligible for the VA home loan guaranty. Let’s take a look at some key requirements on the list:

Marketable Real Estate Entity

• The property must be a single, readily marketable real estate entity. Separate parcels must be placed on one deed.

Access

• Each property must have safe pedestrian or vehicular access from a public or private street. Shared maintenance agreements are required for private roads.

Zoning

• The property must comply with all applicable zoning ordinances. If zoning is legal non-conforming, it must be accepted by local authorities.

Space Requirements

• Each living unit must have adequate space for living, sleeping, cooking, dining, and sanitary facilities.

Encroachments

• The appraiser must report any encroachments onto adjacent properties or easements.

Utilities

• Each unit must have electricity and access to continuous water supply and sewage disposal.

Environmental Requirements

• Issues such as soil stability, potential flooding, coastal barriers, and lava zones are covered.

Mechanical Systems

• Heating, plumbing, and electrical systems must be safe and functioning.

Hazards and Defective Conditions

• Homes with conditions that pose a hazard are not eligible until repaired.

As you can see, the MPRs run the gamut from site-specific items to living conditions and access. The full list contains over 40 different requirements.

The Appraisal Process

The VA appraiser will visually inspect the home to look for any repairs needed to meet MPRs. The appraiser does not conduct exhaustive testing of systems like a home inspector does.

If repairs are required, the appraiser will condition the appraisal on completion of MPR repairs. Any upgrades needed for cosmetic or maintenance items are noted separately and not subject to repair requirements.

The appraiser provides the list of required repairs to the lender. The lender can then issue the Notice of Value to the veteran buyer once they are satisfied with the appraisal and repair requirements.

Considerations for Specific Property Types

In addition to the standard MPRs, there may be specific requirements or restrictions based on certain property types:

• Condos – Must be VA-approved, with individual utility shutoffs for each unit.

• New Construction – Requires soil stability testing and termite treatment certification.

• Manufactured Housing – Must be classified as real estate and meet MPRs for permanent foundations.

• Farms and Hobby Farms – Requirement for livable dwelling, no agricultural value assigned.

• Mixed-Use Properties – The property must be primarily residential in use and zoning.

The Home Inspection Process

While the VA appraisal examines MPR-related items, we strongly recommend buyers take advantage of the option to get a professional home inspection. This allows examination of all the home’s systems and components.

Home inspections typically include:

• Interior rooms, exterior siding, roof, attic, basement, crawlspaces

• Electrical, cooling, heating, and plumbing systems

• Appliances included in the purchase

• Pest/termite detection

• Radon testing

• Well/septic testing if applicable

The inspector will provide a detailed report on the condition of the home. This allows buyers to make an informed decision on how to proceed. In cases where significant issues are found, buyers may be able to re-negotiate the sale price or ask sellers to address repairs.

Tips for Veterans on VA Home Inspections

Here are some key tips for veterans regarding VA loan inspection requirements:

• Review the full MPR list early in the buying process so you know what the VA appraiser will be looking for.

• Do not hesitate to get a home inspection in addition to the VA appraisal. This provides valuable information the appraiser does not cover.

• If buying a condo, ensure it has been approved by VA standards. Check on utility shutoff requirements.

• For new construction, ask the builder for soil and termite treatment documentation ahead of time.

• Carefully review the appraiser’s list of required repairs and clarify any questions with your lender.

• Determine which repairs are critical to address before closing and which may be deferred.

• Keep all inspection documentation for future reference if issues arise.

Following VA guidelines and getting a home inspection sets up veterans for success. Buying a home is an exciting time, and understanding the home inspection requirements in advance can give you greater confidence.