VA Loan House Inspection Requirements: A Comprehensive Guide for Homebuyers

Purchasing a home is likely one of the biggest financial decisions you’ll make in your lifetime. When getting a mortgage, it’s crucial to understand all the requirements and processes involved before signing on the dotted line. This is especially true for VA loans, which have specific standards that properties must meet.

In this comprehensive guide, we’ll walk through the house inspection requirements for VA loans. Whether you’re a first-time homebuyer or looking to take advantage of your VA benefits, this information will ensure you make an informed decision

Overview of VA Loans

VA loans are mortgage loans guaranteed by the Department of Veterans Affairs and issued by private lenders. They allow eligible borrowers to purchase a home with little to no down payment.

Some key benefits of VA loans include:

• Requires 0% down payment for qualified buyers
• No monthly mortgage insurance
• Competitive interest rates
• Flexible credit guidelines
• Can be used multiple times to purchase additional homes

To qualify, you must be an active duty or reserve service member, veteran, or qualifying military spouse. VA loans can only be used to purchase or refinance a primary residence.

VA Minimum Property Requirements (MPRs)

Unlike conventional loans, VA loans have Minimum Property Requirements that each home must meet before the loan can be approved. VA established these standards to protect the interests of borrowers and ensure the home is a safe, sound investment.

The MPRs cover various aspects of the property including:

• Structural integrity
• Safety
• Functionality
• Sanitation
• Environmental factors

It’s the VA appraiser’s job to inspect the property and confirm it meets all the requirements. Any issues that don’t comply with the MPRs must be repaired before closing.

Overview of the VA Appraisal Process

As part of the loan application, the lender will order a VA appraisal. This is performed by an independent, VA-approved appraiser and involves two key components:

1. Valuation – The appraiser will assess the home’s value based on comparable sales and current market data. This determines the amount of the loan.

2. MPR Compliance – The appraiser will thoroughly inspect the property to ensure it meets the VA’s minimum standards.

Keep in mind the appraisal is different from a home inspection, which is more comprehensive. The VA doesn’t require buyers to get an inspection, but it can provide added protection by identifying issues the appraiser may miss.

Once complete, the borrower will receive a Notice of Value (NOV) outlining the appraised value and any required MPR repairs. The NOV is valid for 6 months.

Complete List of VA MPRs

The VA guidelines provide detailed criteria covering dozens of different property aspects. While not exhaustive, here is an overview of some key VA house inspection requirements:

Structural

• Foundation – Must be sound and free of cracks or evidence of significant settling.
• Framing – Walls, floors, and roof must be solid without compromised structural integrity.
• Roof – Must be free of leaks and provide reasonable future utility. Minimum 12 months remaining life.
• Attic/Crawl Space – Must be properly vented and free of moisture.

Safety

• Electrical – All wiring must be safe and functioning properly.
• Plumbing – No major leaks or evidence of contamination in water supply.
• Heating – Home must be able to maintain temperature of 50°F in areas with plumbing.
• Environmental – No excessive noise, smoke, or other hazards from nearby properties.

Functionality

• Living Area – Home must offer minimum living space relative to number of bedrooms.
• Kitchen – Must have space for food prep and storage. Stove/oven required.
• Bathroom(s) – Fully functioning toilet, sink, and bath/shower required.
• Electricity – Must have functioning electric service panel.
• Water/Sewer – Home must have potable water source and sanitary sewage system.

Sanitation

• Mold – No visible mold or moisture that could lead to mold growth.
• Pests – No active infestations or damage from wood destroying insects.
• Lead-Based Paint – No deteriorated paint on homes built before 1978.

Other Requirements

• Easements – Home should not encroach on neighbor’s property or utility easements.
• Zoning – Home must comply with all zoning laws and restrictions.
• Access – Property must be accessible from public or private road.
• Flood Zone – Homes in high risk flood zones require flood insurance.

This list provides a general overview, but the full VA guidelines contain additional details and exceptions. Speaking with a lender is the best way to understand how the requirements apply to your specific property.

4 Key Areas the VA Inspects

While appraisers check all aspects of the home, there are 4 areas the VA pays particularly close attention to:

1. Structural Integrity

The VA wants to ensure the home is structurally sound and built to last. This includes inspecting:

• Foundation – Should be free of large cracks or uneven surfaces indicating shifting.
• Walls and floors – No major cracks or sagging which could signal structural issues.
• Roof – Should be in generally good condition with no curling, worn shingles, or evidence of leakage.

Any major defects like severe cracking or settling must be repaired prior to closing.

2. Mechanical Systems

Functioning electric, heating, cooling, and plumbing systems are critical for home safety and livability. The appraiser will:

• Turn on all faucets, flush toilets, and check for leaks.
• Verify water heater is properly installed and vented.
• Check AC/heating system for damage and test operation.
• Inspect electrical panel and wiring for deficiencies.

Malfunctioning or damaged systems may require repair or replacement.

3. Pests and Mold

Pests and mold can lead to thousands in repairs if left unchecked. Appraisers will look for:

• Rotting wood and other signs of termites, ants, or other pests.
• Water damage and high moisture areas susceptible to mold growth.

A pest inspection is required in some regions. Mold issues must be remediated.

4. Lead-Based Paint

Lead paint becomes a hazard when deteriorating, so appraisers look for:

• Chipping, flaking, or peeling paint on homes built before 1978.
• Bare wood surfaces indicating lead paint was removed unsafely.

Any chipping paint must be stabilized before closing.

What if the Property Fails Inspection?

If the appraisal uncovers MPR issues, there are a few possible outcomes:

• The seller can complete repairs so the home passes re-inspection.
• The buyer can negotiate with the seller to get a repair credit.
• The buyer can withdraw the offer if repairs are too costly.
• The buyer can request a waiver of repairs from the VA.

Getting the home to meet MPR standards is usually the preferred route. But less serious issues may be candidates for a waiver, allowing the loan to proceed without completing repairs.

Tips for Passing the VA Appraisal

Here are some pro tips for giving your home the best shot at passing the VA inspection on the first try:

• Do pre-inspections – Conduct both a home inspection and pest inspection upfront so you can negotiate repairs with the seller early on.

• Check big items – Thoroughly inspect the roof, foundation, electrical, plumbing, and HVAC to catch any red flags.

• Clean thoroughly – A deep clean can help minimize small issues that may turn up.

• Curb appeal – Trimming bushes, painting shutters, and other exterior upgrades can give appraisers a positive first impression.

• Declutter – Remove excess furniture and personal items so the appraiser can easily access all rooms and systems.

• Make minor repairs – Don’t ignore minor issues like dripping faucets, cracked caulking, or squeaky hinges.

Following these tips and having a clear understanding of the VA’s house inspection requirements can help ensure your home purchase goes smoothly. Speak with a knowledgeable VA lender if you have any additional questions.