VA loan inspection requirements: A quick guide

The Department of Veterans Affairs (VA) issues VA loans to make homeownership easier for veterans, service members, and surviving spouses. Before borrowers can secure one, they need to meet a specific set of requirements. 

One of these is a thorough home appraisal to confirm the house’s value and verify whether property has livable amenities, including potable water and solid wiring.

There are no VA loan inspection requirements — these mortgages only need appraisals. These evaluations work in your favor, but won’t uncover the same details as a conventional review, like outdated water heaters or the roof’s remaining lifespan.

Understanding these two similar terms lets you confirm your home’s value and meet your chosen loan’s criteria. Discover the difference between VA home appraisals and inspections and the benefits of ordering both.

Home inspections vs. VA home appraisals

Borrowers often mix up conventional home inspections, an optional practice, with appraisals, an essential step in the VA loan process. There are no VA-required inspections — they’re an independent service buyers can order to examine a home. 

Here’s a quick summary:

— VA appraisals: These evaluations reassure the VA that the home is a worthwhile investment and habitable for borrowers. Appraisals are high level, ensuring the property is at a fair market value and meets minimum property requirements (MPR), such as having usable sewer systems and street access.

— Typical home inspections: Buyers schedule these assessments to discover valuation and potential hazards for themselves. These are typically more in depth, identifying specific areas of improvement, like outdated water heaters or furnaces that need an upgrade.

Buyers typically pay for these services, though they can negotiate with sellers to cover the cost. Both types of assessments are comparable in price, ranging from $200–$500. However, VA appraisals can be more expensive, sometimes going up to about $1,000.

What are the VA minimum property requirements?

During the appraisal, a VA-licensed professional checks the home against the MPR to certify the property meets health and safety standards. Requirements change across states, so it’s best to check your local regulations. Here are a few categories that appraisers typically check:

— Safety and access: The property needs safe entry and exit points, usable locks and handrails where applicable, and street access from a private or public road. It must have no obvious hazards, such as broken stair treads or uneven carpet, which can both cause tripping.

— Structure and roof: Homes need solid foundations, walls, and roofs without any significant cracks or leaks.

— Utilities: Appraisers check heating, ventilation, and air conditioning (HVAC), as well as plumbing and electrical. They ensure these features are protected from the elements and appear to work adequately but won’t perform a full operational test.

— Sanitation: The property needs safe drinking water, a functional water heater, and proper sewage disposal.

— Environmental: There must be no signs of hazardous conditions, such as mold, pest infestation, and lead-based paint (typically found in older dwellings). Appraisers will also check if the property is in a flooding area.

— Adequate space: The home needs to be large enough to accommodate all occupants comfortably. There’s no set size requirement — the appraiser will use their best judgment depending on your family and situation.

Does a VA loan require an inspection?

Conventional inspections aren’t required, but they’re highly recommended. Once a property passes the appraisal stage, there’s still a chance it has issues. An appraisal only checks the home’s value and structural state and won’t dig into specifics. Home inspections, on the other hand, help you discover details like the quality of the furnace or if the roof will need a replacement in the next two years. 

Home inspection checklist requirements

When securing a VA mortgage, inspection checklists help you understand the process and ask your inspector targeted questions. Here are some elements to include in your list before jumping into your first home tour:

— Home structure: Ask about signs of wear or visible damage throughout the house, including on the roof, floor, and load-bearing walls.

— Foundation and basement: Find out whether inspectors have uncovered cracks, water leaks, or strange smells in the foundation. These issues are often an indication of larger issues.

— HVAC: Ask if inspectors have thoroughly reviewed HVAC functionality, such as conducting a visual assessment and operational test. This might include checking the thermostat, checking electrical connections, and confirming smooth airflow.

— Electrical: Find out if the workers examined light switches and service panels to ensure they operate safely and have no signs of wear.

— Plumbing: Confirm that inspectors checked for nonstandard water pressure and potential leaks. They also usually review the purchase date of the water heater and sump pump to ensure they’re recent.

— Interior and exterior: Ask about anomalies like stains or damaged finishes, as they can be a sign of larger concerns like a damp environment and mold growth.

Benefits of home inspections

To secure all the advantages of a VA home loan, inspections aren’t required. However, these assessments provide a clearer understanding of the property’s value. This helps you plan repairs, make informed decisions, and negotiate fairly. Here are a few benefits of a home inspection:

— Provides transparency about the home’s value so buyers can plan their budgets.

— Increases buyer confidence and helps them close the deal with less stress.

— Uncovers repair and maintenance needs so buyers can negotiate for fixes or credits before the sale is final.

Is an inspection a good idea?

While they aren’t required by the VA, home inspections are definitely worthwhile. Inspections are crucial for older homes due to the likelihood of features that aren’t compliant with modern codes. However, newly built houses also benefit. For instance, a construction oversight might cause improper drainage, which could lead to flooding during rainy months.

Inspections reveal issues that VA appraisals don’t investigate. Discovering these concerns early makes it easier to assess additional costs and confirm the home aligns with your financial goals. If you’re unsure whether you need an inspection, ask your real estate agent.

Smoothly manage the VA loan process with Better

While an appraisal shows you basic value and quality, it’s primarily a loan qualifier and won’t replace a conventional inspection. Both of these assessments are important steps in the VA home buying journey. Though the process seems a little daunting, you can move through it confidently with Better.

Better helps VA-eligible buyers clearly navigate home shopping, from mortgage approvals to closing costs. This platform offers a lightning-fast process and expert guidance on VA loan rules — all from a fully digital dashboard.

Apply for a VA loan in as little as three minutes, secure favorable rates, and find your dream home with Better.

...in as little as 3 minutes – no credit impact

FAQ

What are the appraisal requirements for a VA home loan?

VA appraisals check various parts of a home for value and safety. This assessment includes confirming usable utilities, street access, and potable water. Exact requirements may vary by state. For example, some areas require a termite inspection regardless of evidence of infestation, while others need proof, such as wood damage or live insects.

Is a home inspection required for a VA loan?

No, VA guidelines don’t require inspections. VA loans mandate a high-level appraisal to determine the home’s value and ensure it meets safety standards but not an in-depth house inspection. However, many buyers order both for a comprehensive review of their potential new property.