What Inspections Are Required for a VA Loan? A Complete Guide

When getting a VA loan to purchase a home, there are certain property requirements and inspections that must be met to ensure the home is safe, structurally sound, and a good investment. While a regular home inspection is recommended, the VA does not require it. However, the VA does have mandatory guidelines called Minimum Property Requirements (MPRs) that properties must meet before the loan can be approved

VA Appraisal Is Not the Same As a Home Inspection

It’s important to understand that the VA appraisal is different from a home inspection The appraiser will estimate the property’s value and note any repairs needed based on a visual inspection But they will not do an operational check of systems and appliances like a home inspector does,

The appraisal ensures there is adequate value to secure the loan amount. A home inspection looks for defects and evaluates the condition of the home more comprehensively. VA recommends buyers get a home inspection but it is not required.

Key VA Loan Appraisal Requirements

While a full home inspection is not required, there are 10 key areas the VA appraiser will evaluate to ensure the property meets MPRs:

1. Space Requirements

The home must have adequate space for living, sleeping, cooking, dining, and sanitary facilities. Unique house styles like dome homes must meet local building codes.

2. Access and Encroachments

The home must have safe pedestrian or vehicular access from a public or private street. Private roads must have permanent easements. The appraiser checks for encroachments onto adjacent properties or easements.

3. Hazards

The property must be free of hazards like mudslides, falling rocks, and avalanches. Issues like sinkholes or subsidence that affect safety make a property ineligible.

4. Water Supply, Sanitary Facilities and Sewage Disposal

The home must have a continuous supply of safe drinking water, hot water, and a safe sewage disposal method. Individual well and septic requirements apply.

5. Gas, Electricity and Other Utilities

Each unit must have electricity and utility services. Frayed electrical wires must be repaired. Utilities must be independent for each unit except in 2-4 unit properties.

6. Home Structure

The home must be structurally sound and free of defects like cracking or settling foundations. VA minimum square footage requirements apply.

7. Pest Inspection, Dry Rot and Other Signs of Deterioration

The appraiser will check for infestation, fungus, dry rot, and other deterioration issues. A pest inspection may be required if signs of wood destroying insects are found.

8. Proper Drainage

The property must have positive drainage away from the perimeter of the home to prevent ponding and moisture damage.

9. Zoning and Code Compliance

The home must comply with zoning ordinances and local housing authority codes. Non-conforming properties may require special approval.

10. Lead-Based Paint

For homes built before 1978, the appraiser will look for defective paint surfaces and require repair if found. A lead-based paint inspection is not required.

Key Details on 4 Important VA Appraisal Requirements

Let’s go over more specifics on four key areas VA appraisers scrutinize closely: water supply, well/septic, termites, and lead-based paint.

Water Supply

The home must have safe drinking water from a municipality, community well, or private well. If water purity is in question, an inspection may be required. Filtration systems may be needed on some properties.

With private wells, the local health authority’s requirements apply. Testing must be done by an independent third party. The buyer acknowledges risks in writing if the water supply is from a well, cistern, spring, lake, etc.

Individual Well and Septic

Private well water must meet local health authority or EPA standards for water quality. Septic systems must be free of evidence of failure. An inspection by a licensed septic professional may be required if there are signs of failure.

Termite/Pest Inspection

The appraiser will look for visible evidence of wood destroying insect infestation, fungus growth, dry rot, and pest infestation. Fumigation or treatment may be required if damage is found. A pest inspection by a qualified specialist is advisable if the appraiser notes signs of infestation.

Lead-Based Paint

For homes built before 1978, the appraiser will conduct a visual assessment for defective paint surfaces. Friction surfaces subject to abrasion and impact points like doors and windows are checked closely. If defective paint is found, repair will be required to stabilize the surfaces.

Key Takeaways

While the VA does not require a whole home inspection, their appraisal guidelines focus on safety and structural integrity to protect veterans. Key requirements cover water supply, septic/well, drainage, ground stability, zoning, termites, lead-based paint risks, and more. Understanding these requirements helps buyers know what to expect during the VA loan process.