Everything You Need to Know About VA Loan Inspection Requirements

If you’re a veteran considering applying for a VA loan one key thing you’ll need to know about is the VA loan inspection requirements. VA loans come with certain standards that properties must meet in order to qualify for financing. Understanding these requirements ahead of time will help ensure a smooth loan process.

In this comprehensive guide. we’ll cover all the key details on VA property inspection requirements including

• The purpose of VA inspections
• When VA inspections happen
• Who conducts VA inspections
• VA minimum property requirements (MPRs)
• Common issues found in VA inspections
• How to address problems found during inspection
• Tips for preparing for a VA inspection

What is the Purpose of a VA Inspection?

A VA inspection is performed to ensure the property meets VA’s minimum property requirements These requirements are in place to protect the interests of veterans, lenders, servicers, and the VA

The inspection verifies that the home is safe, structurally sound, and sanitary. VA wants to avoid veterans being stuck with properties that have significant defects or pose health hazards.

While a VA inspection is not as in-depth as a home inspection, it helps identify any repairs needed to meet VA guidelines before the loan can be approved.

When Do VA Inspections Happen?

A VA inspection is typically performed as part of the home appraisal for purchase loans. VA appraisers are required to note any readily apparent repairs needed for MPR compliance.

For refinances, a VA inspection may be performed if requested by the lender or veteran. This is more common with cash-out refinances when the last inspection was many years ago.

The inspection results are valid for six months. So if closing is delayed beyond that, an updated inspection may be required.

Who Conducts the Inspection?

VA inspections are performed by VA fee appraisers assigned to inspect the property. Appraisers are chosen randomly and have no association with the seller or real estate agents.

It’s the appraiser’s responsibility to complete the inspection forms, noting any deficiencies, and provide photos of any problem areas.

Overview of VA Minimum Property Requirements (MPRs)

The VA guidelines establish minimum standards in several areas:

Structural Integrity

• Foundation must be sound and free of water damage or structural issues
• Roof must be free of leaks and provide adequate drainage
• No extensive cracking in walls or ceilings
• Adequate spacing between buildings for maintenance

Basic Amenities

• Proper electricity and utility hookups
• Adequate water supply and plumbing
• Heating source present

Safety

• No potential hazards such as unstable soil, sinkholes, or flooding
• No lead-based paint or other toxins
• Meets local building codes and zoning laws

Habitability

• Sufficient living area with proper room dimensions
• Proper access to the property
• Kitchen and bathrooms in working order

We’ll go over some of the most common MPR items VA appraisers look for next.

Common Issues Found During VA Inspections

While every property is different, there are some items VA appraisers routinely check for during the inspection process. Some common issues include:

• Cracked Foundations – Any visible cracks in the foundation walls or evidence of water intrusion need to be examined. Large cracks may require an engineer’s assessment.

• Roof Damage – Appraisers will look for broken or missing shingles, curling, and any signs of water leaks. Roof repairs may be required.

• Electrical Issues – Exposed wiring, broken fixtures, and insufficient amperage for home systems may prompt electrical repairs.

• Plumbing Leaks – Slow drains, dripping faucets, and signs of water damage around pipes could indicate plumbing repairs are needed.

• HVAC Issues – Problems with the furnace, central air, or heat pump may need to be addressed. Lack of adequate heating or cooling can also impact value.

• Pest Infestation – Rotted wood or holes in siding could signal a pest problem. An inspection and treatment may be required.

• Water/Well Issues – Contaminated or insufficient water sources will need to be corrected.

• Sewage Problems – Improper drainage, absent waste lines, or septic tank issues will need to be fixed.

• Hazardous Materials – This includes lead-based paint, asbestos insulation, or contaminated soil. Remediation may be required.

How to Address Problems Found During Inspection

If issues are identified during the inspection, the appraiser will condition the appraisal on completion of repairs for MPR compliance. There are a few potential scenarios for addressing problems:

• Ask the seller to complete repairs – This is ideal if repairs are minor. Get repair estimates and negotiate repairs with seller.

• Accept a credit for repairs – If seller won’t repair, ask for a credit to cover cost of repairs after closing.

• Withdraw offer – Walk away if repairs are too costly or seller won’t negotiate repairs/credit.

• Dispute issues – You can order a second inspection if you disagree with the appraiser’s findings.

Any required repairs must be completed before closing. A follow-up inspection may be required to confirm the repairs have been satisfactorily completed.

Tips for Preparing for a VA Appraisal

• Get a pre-inspection yourself so you can address issues upfront before the VA inspection.

• Thoroughly clean the home and make all areas accessible to the appraiser.

• Ensure all utilities are on and appliances/home systems are operational.

• Make any minor repairs needed ahead of time like dripping faucets, damaged screens/windows, or cracked outlet covers.

• Correct any issues the home inspection uncovers prior to the VA appraisal.

• Cut overgrown landscaping, trim trees/bushes touching home exterior.

• Declutter! Remove excess furniture and personal items to show off the home.

• Make sure the roof and attic are easily accessible for inspection.

Following these simple tips will help ensure your home presents in the best possible light for the VA appraiser.

The Bottom Line

Undergoing a property inspection is a key step when obtaining a VA loan. Being aware of the VA minimum property requirements and common inspection issues will help you prepare for this important part of the process.

Addressing any deficiencies found during the inspection will allow you to move forward with your VA home loan. With a smooth inspection process, you’ll be one step closer to purchasing your dream home.