A property inspection can help you detect problems with a house before you buy it. Discovering problems in advance can help you secure a discount or know to walk away from the deal. The Department of Veterans Affairs has high standards for any home that uses VA financing, and you’ll need someone to give the property a look. This guide will cover what you need to know about VA loan inspection requirements.
Overview of VA Loans
VA home loans let people buy properties with 15-30-year terms. VA-approved lenders can offer these government-backed loans to eligible service members, veterans, and spouses. These loans are quite competitive, featuring lower APRs than most types of loans, zero down payment requirements, and no private mortgage insurance.
What are the Eligibility Requirements for a VA Loan?
The Department of Veterans Affairs outlines the service requirements for veterans and service members. If you served long enough, you can qualify for a VA loan. Borrowers must present a Certificate of Eligibility (COE) to receive a VA loan.
If you determine that you meet these eligibility requirements and just want to explore your options further, The Federal Savings Bank is here to assist you. Their team of professionals is well-versed in the nuances of VA loans and can guide you through each step of the process.
Whether you’re purchasing your first home, refinancing, or considering a manufactured home, their dedicated team is prepared to provide personalized support tailored to your unique situation. Don’t miss out on the opportunity to leverage your VA benefits for homeownership—fill out this form by answering a few simple questions, and someone from their team will get in touch with you.
Do You Need a Home Inspection for a VA Loan?
You technically do not need a home inspection for a VA loan. That’s because the VA appraiser determines if the property fulfills the VA’s benchmarks. However, a home inspection can reveal additional issues and give you a better idea of whether the property is worth it or not.
Why VA Loan Inspections are Important
VA loan inspections are advantageous for aspiring homeowners. These are some of the perks.
Ensuring Property Condition
Property inspections ensure that the property is structurally sound and fulfills the other requirements of being a good home. VA loan requirements are geared toward helping people buy move-in ready homes instead of fixer-upper properties.
Protecting Veterans’ Interests
VA inspections can detect issues and make veterans feel more confident about the homes they buy. Knowing a home has passed the VA’s rigorous standards can put home buyers at ease.
Loan Approval Process
A VA appraisal and certain inspections are required for approval. The property must pass inspections before you can buy it with a VA loan.
What are the Inspection Requirements for a VA Loan?
Home buyers who want to use VA loans should prepare for these inspections.
VA Appraisal
Every mortgage lender will have you appraise the property to determine its fair market value. However, a VA-approved appraiser offers more comprehensive services. The appraiser isn’t only assessing value, but this individual also looks for potential problems that can make the property ineligible for a VA loan.
Termite Inspection
The VA requires termite inspections in areas that have a higher likelihood of termite infestation problems. The VA uses the Termite Infestation Probability Map to determine if the property in your area needs this type of inspection.
Home Inspection (Not Mandatory But Recommended)
A regular home inspection is not required for a VA loan or any other property. However, it’s strongly encouraged since it can reveal problems that may be overlooked during the appraisal process. You can save money with a home inspection and feel more confident about your purchase if you close on the property.
Well and Septic Inspections
The VA requires well and septic inspections to ensure that the property is sanitary. This inspection indicates if the property is safe or needs changes to be VA eligible.
VA Minimum Property Requirements (MPRs)
The Department of Veterans Affairs has several requirements for each property. These are the requirements to keep in mind.
Safety Standards
Each home must be a structurally sound, safe, and sanitary place to be eligible for a VA loan. These safety standards are reasonable for a primary residence, but they don’t offer much flexibility for people who want to fix properties that need substantial help.
Structural Integrity
A property must have a strong foundation and structural integrity to fulfill the VA’s minimum property requirements. The home must be free of wood-destroying insects and lead-based paint. It must also be accessible from an all-weather public or private street.
Sanitary Conditions
The VA will run a well and septic inspection to ensure the property has good sanitary conditions. This inspection checks the property’s cleanliness.
Detailed Requirements for VA Loan Inspections
The Department of Veterans Affairs has basic requirements, but it’s also good to know these advanced requirements.
Interior Requirements
A home must be at least 400 square feet and have a ceiling that’s 6’8” or higher. The property must also have an attic, crawl space, and basement. The interior cannot have lead paint. Inspectors will also check the floors and ceilings.
Exterior Requirements
Inspectors will check the property’s roof, gutters, walkways, siding, decks, patios, and other exterior elements.
Utilities and Appliances
Inspectors will review the property’s HVAC, insulation, plumbing, and electrical to ensure that they all work. The property must have smoke and carbon monoxide detectors.
Environmental Hazards
The VA checks for any environmental hazards like pests, termites, and mold that can make the property unsafe. Environmental hazards must be addressed before a VA loan can be approved.
The Role of the VA Appraiser
A VA appraiser plays an important part in every home buyer’s journey that is seeking VA financing. Here’s what you should know about a VA appraiser’s responsibilities.
The VA Inspection and Appraisal Process
The VA appraiser will assess the property to determine its value and make sure it’s eligible for a VA loan. The Department of Veteran Affairs may require additional inspections depending on the area, such as a termite inspection.
Responsibilities of the Appraiser
The appraiser will take pictures of the property and make measurements. It’s the appraiser’s responsibility to determine the property’s value and ensure it fulfills the VA’s minimum property requirements.
What are the Red Flags for VA Appraisal?
Any structural damage, unsanitary rooms, dangerous wiring, and other issues that do not fulfill the minimum property requirements are red flags. If the house feels unsafe or hazardous, it probably won’t get approved for a VA loan.
Common Inspection Issues and How to Address Them
An inspection can reveal issues within a property that make homebuyers think twice. In the case of a VA loan, some issues can disqualify a property from consideration. These are some of the common inspection issues that may come up.
Pest Infestations
Any damage must be repaired before the deal can be finalized. The seller should contact a professional exterminator and have them remove the pests. Then, a re-inspection will confirm whether the pests are gone or not. If the re-inspection goes well, you can close on the property.
Structural Problems
You’ll need the seller to fix structural problems before the deal can proceed. If you really want the property as is, and the seller will not fix structural issues, you may have to use a conventional mortgage instead.
Plumbing and Electrical Issues
The seller must fix plumbing and electrical issues before the VA will approve your loan request. Then, the property will be re-inspected to ensure it fulfills VA guidelines. If the seller does not want to make changes, you will have to use another type of home loan to buy the property.
Other Tips for a Smooth Inspection Process
Knowing what to expect increases the likelihood of a smooth inspection process. You’ll have to work with a VA appraiser to see if the property is eligible for a VA loan. The best way to have a smooth inspection process is to look for homes that are move-in ready. You don’t want to go through the effort of a VA appraisal and inspection for a property that looks like it is in desperate need of some TLC.
Attending a home showing can give you a better idea of whether it would fulfill the VA’s standards. While some issues are hidden beyond the surface, if you find any easily detectable issues with plumbing, electrical, the structure, and other details outlined in the minimum property requirements, you may want to walk away from that property.
If the property looks like it is in good condition, you may want to proceed with a VA appraisal and the necessary inspections. If an issue comes up, you can notify the seller. While the seller is not obligated to improve the property, doing so can make their listing more attractive to non-VA borrowers. It’s also important to know when to walk away from a deal instead of hoping that hope alone can change the outcome.
FAQs About VA Loan Inspection Requirements
Yes. VA loan inspections are stricter than other inspections, and the Department of Veterans Affairs will not allow loans to go through if the basic requirements aren’t met.
You cannot waive the VA appraisal and inspection requirements. While a home inspection is optional but strongly encouraged, a VA appraiser and the necessary inspectors must be part of the process.
If a home does not meet VA loan inspection standards, then you cannot buy the house. You can ask the seller to make the necessary changes so the property is eligible for a VA loan. If you want the property and the seller will not make changes, you may have to take out a traditional mortgage instead.
