A VA appraisal is a critical step in the homebuying process for those using a VA loan to purchase a home. The primary goal of a VA appraisal is to ensure that the property meets the VA’s minimum property requirements (MPRs) and is safe, structurally sound, and sanitary for occupancy. The VA appraisal protects both the borrower and the lender by verifying that the property meets these standards.
What are the minimum property requirements (MPRs) for a VA appraisal?
The MPRs cover a range of factors including safety, structural integrity, sanitation, and more. Some common requirements include functioning heating and cooling systems, a reliable water supply, and adequate living space.
What is the difference between a home inspection and a VA appraisal?
While a home inspection is a detailed examination of the property’s condition and systems, a VA appraisal focuses on meeting the VA’s specific property requirements. The VA appraisal is required for VA loans, whereas a home inspection is optional but recommended for all homebuyers.
Will a VA appraisal point out cosmetic issues?
While a VA appraisal focuses on the property meeting the MPRs, cosmetic issues are generally not a concern unless they pose a safety hazard or affect the property’s value. However, it is possible for an appraiser to note major cosmetic issues that could impact the property’s value.
How can a seller prepare for a VA appraisal?
Sellers can prepare for a VA appraisal by ensuring the property meets the MPRs, addressing any safety hazards or structural issues, and providing access to all areas of the property for the appraiser’s inspection.
What happens if the property does not meet the VA’s minimum property requirements?
If the property does not meet the MPRs, the buyer and seller can negotiate repairs or corrections to bring the property up to standard. In some cases, the VA may require certain repairs to be completed before the loan can be approved.
Can a buyer appeal a VA appraisal decision?
Buyers can appeal a VA appraisal decision if they believe there was an error in the appraisal process or if they have additional information that may impact the property’s value. The appeal process typically involves providing documentation or evidence to support the appeal.
How long is a VA appraisal valid?
A VA appraisal is typically valid for up to six months, but the lender may require a new appraisal if the transaction does not close within that timeframe. If significant changes occur to the property or market conditions, a new appraisal may also be required.
What are some common reasons for a property to fail a VA appraisal?
Common reasons for a property to fail a VA appraisal include structural issues, safety hazards, inadequate living space, and environmental hazards. Any issues that violate the MPRs could result in a failed appraisal.
Can a VA appraisal value the property higher than the purchase price?
While a VA appraisal aims to determine the property’s market value, it is possible for the appraised value to be higher or lower than the purchase price. If the appraised value is higher, it could benefit the buyer by potentially increasing their equity in the property.
Does the buyer need to be present for a VA appraisal?
The buyer does not need to be present for a VA appraisal, but they may choose to attend to ask questions or address any concerns. In most cases, the appraiser will coordinate directly with the lender and seller to schedule the appraisal.
Can a VA appraisal be transferred to a different lender?
A VA appraisal cannot be transferred to a different lender, as the appraisal is ordered by the lender specifically for that transaction. If the buyer chooses to change lenders, a new appraisal will need to be ordered by the new lender.
Is a VA appraisal required for a refinance?
A VA appraisal is typically required for a VA cash-out refinance to determine the property’s current market value. However, a VA streamline refinance may not require a new appraisal if certain criteria are met.