Purchasing your first home is an exciting milestone! As a veteran, you may be eligible for a VA home loan which makes buying a home more affordable. VA home loans don’t require a down payment or private mortgage insurance. But there are certain property requirements, known as MPRs, that must be met before your VA loan can be approved Read on to learn all about VA minimum property requirements
What Are VA Minimum Property Requirements?
The VA has established Minimum Property Requirements (MPRs) to protect veterans, lenders, servicers, and the VA itself Properties must meet MPRs before the VA will guarantee a VA home loan
MPRs ensure the property is structurally sound, safe, sanitary, and meets location and legal standards. There are over 40 different MPR topics ranging from utilities to potential environmental hazards.
While the VA appraiser will note any repairs needed in the appraisal, MPR inspections are more thorough than a standard home inspection. Cosmetic repairs like minor deferred maintenance or normal wear and tear generally aren’t required.
When Do MPR Inspections Occur?
For purchase loans, the appraisal is completed “subject to” completion of any repairs needed for MPR compliance. The value of repairs is included in the appraised value.
For refinances or non-IRRRL streamline refis, an as-is appraisal is completed but any existing MPR violations must still be corrected prior to closing.
MPR inspections are required:
- After the home is under contract but prior to loan closing
- For new construction, after the foundation is completed
- At various stages of construction for builders in the VA Builder Program
The buyer typically chooses their own inspector. The seller is responsible for paying for any required repairs.
The Complete List of VA Minimum Property Requirements
Below are the topics covered by MPRs, directly from VA Pamphlet 26-7:
1. Marketable Real Estate Entity
The property must be a single, readily marketable real estate entity. It may include multiple parcels or lots if contiguous and can be marketed together.
2. Space Requirements
Each living unit must have sufficient space for living, sleeping, cooking, dining, and sanitary facilities. Unique home styles like dome homes must meet local building codes.
3. Access
The property must have safe pedestrian or vehicular access from a public or private street. Private roads must be protected by a permanent easement and have maintenance agreements.
4. Encroachments
The appraiser must report any encroachments onto the property or by the property onto adjacent land.
5. Drainage and Topography
The site must have positive drainage away from the home and no ponding. Dangerous topographic conditions like mudslides must be reported.
6. Geological Hazards
The appraiser must report any readily observable geological hazards and analyze the effect on value. New construction in susceptible areas may require geological testing.
7. Flood Zones
Properties in FEMA Special Flood Hazard Areas must have flood insurance. Areas subject to regular flooding are ineligible.
8. Coastal Barrier Resources System
Properties in CBRS zones are ineligible. Appraisers near coastal areas must be familiar with CBRS boundaries.
9. Lava Flow Zones
Properties in Zones 1 and 2 are ineligible. The appraiser must report the zone and effect on value for properties in other zones.
10. Non-Residential Use
A property with both residential and business use may be eligible if primarily residential, the business does not impair residential character, and the property complies with zoning.
11. Zoning
The property must comply with all zoning ordinances or be accepted as a legal non-conforming use.
12. Local Housing Authority Code Enforcement
The appraiser must describe any specific property requirements enforced with the sale of homes. Repairs required for code compliance must be completed.
13. Utilities
Each unit must have electricity and independent utility shut-offs. Utilities serving one unit shall not run through another unit.
14. Water Supply and Sewage
The property must have hot and cold running water, sanitary facilities, and a safe sewage system. If public utilities are available and mandated, connection is required.
15. Individual Water Supply
Water quality must meet local health authority or EPA standards. Testing must be done by an approved third party within 90 days. Filtration systems require veteran acknowledgment of maintenance needs.
16. Individual Sewage Disposal
The appraiser must note any readily observable deficiencies and necessary repairs. New systems require health authority approval.
17. Shared Wells
Shared wells must have a maintenance agreement with recorded easements. No more than four living units may share a well.
18. Community Water/Sewer
Community systems must have appropriate permits and approved maintenance agreements and plans.
19. Hazards
The property must be free of all known hazards that may negatively affect the health and safety of occupants or the structural soundness of the improvements.
20. Defective Conditions
The appraiser must require repair of any defective conditions that pose a safety hazard.
21. Mechanical Systems
Mechanical systems must be safe to operate, protected from destructive elements, and provide adequate service.
22. Heating
The property must have permanently installed heating able to provide at least 68 degrees F to all rooms used for living.
23. Leased Equipment
Leased mechanical systems must have endorsements transferring any remaining warranty.
24. Alternative Energy
Solar, wind, or geothermal systems must meet industry standards. Veterans must acknowledge maintenance requirements.
25. Swimming Pools
In-ground pools must have adequate fencing and safety barriers. Above-ground pools must have non-climbable sidewalls and appropriate barriers.
26. Roof Covering
Defective or leaking roofs must be repaired. Asphalt shingles have a minimum 15 year life expectancy.
27. Attics
Attics must be properly vented and have adequate access.
28. Crawl Spaces
Crawl spaces must be properly vented and free ofexcess moisture. Dirt floors in crawl spaces should be covered with vapor barriers.
29. Basements
Basements must be free of dampness or wetness. Sump pumps should have back up power.
30. Burglar Bars
Quick release mechanisms are required on sleeping room burglar bars and windows opening to fire escapes or exterior stairs.
31. Wood Destroying Insects/Organisms
Current wood destroying insect infestation and fungal growth must be treated. The appraiser must report any visible damage.
32. Radon Gas
New construction in Zone 1 radon areas requires radon resistant features.
33. Potential Environmental Hazards
The property must not be subject to any known environmental hazards like methane gas, lead paint, unsafe water supply, etc.
34. Stationary Storage Tanks
The appraiser must report any leaking or abandoned tanks and analyze the effect on value.
35. Lead-Based Paint
For homes built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure and the opportunity to have the home inspected.
36. Airport Noise and Hazards
The appraiser must review airport noise zone maps and report any effect on value.
37. Gas and Hazardous Liquid Pipelines
The appraiser must report any safety issues and proximity to pipelines and analyze the effect on value.
38. Manufactured Housing
Manufactured homes classified as real estate must be on a permanent foundation and comply with MPRs.
39. Modular Housing
Modular homes must be built to local and state building codes.
40. Energy Conservation and Sustainability
Homes must comply with VA energy conservation and sustainability standards. Veterans must acknowledge maintenance requirements for alternative energy equipment.
41. Waivers
The VA may provide a waiver for properties that do not precisely meet an MPR if the defect does not present a health or safety issue and is not structural in nature.
As you can see, MPRs thoroughly cover all aspects of the property to ensure veterans aren’t saddled with unsafe, unsanitary, or structurally deficient homes. While the list seems long, many MPR items are common sense safety and function requirements that any home should meet.
Now that you know what to expect, you can shop for your new home with confidence! Just be sure to pay close attention during showings and inspections to identify any areas that may require repairs for VA approval. With a VA home loan, you’ll soon be on your way to enjoying the benefits of homeownership.
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FAQ
What inspection is needed for a VA loan?
What will VA fail an inspection for?
What does the VA look for in an inspection?
What will not pass a VA appraisal?
What are VA loan inspection requirements?
VA loan inspection requirements are often conflated with VA loan appraisals, which carry specific requirements not typical of an appraisal for a conventional loan. These additional requirements can often be perceived as a con of VA loans, but they don’t have to be.
Does a VA inspection require a home?
VA loan requirements include buying a home that meets the VA’s Minimum Property Requirements (MPRs). A home that does not meet these requirements, which you can read here, will not pass the VA appraisal process’s inspection. How strict is a VA inspection?
What are the requirements of a VA loan appraisal?
The requirements of a VA loan appraisal are unique from the requirements of a typical appraisal. Like a traditional home appraisal, the home must appraise for the purchase price or more. Unlike a traditional home appraisal, a VA loan appraisal must also meet the minimum property requirements.
Is a home inspection a required part of the VA loan approval process?
In contrast, a home inspection is not a required part of the VA loan approval process. This inspection gives detailed insight into a house’s condition, and homebuyers using a VA home loan can benefit by getting a home inspection in addition to their VA appraisal.