When you purchase a home using the VA Home Loan, the VA uses what they call Minimum Property Requirements (MPR’s) to ensure the home qualifies. It is sometimes also referred to as VA Loan Inspection Requirements.
The VA’s goal by enforcing MPRs is to make sure military and Veterans have safe and functional homes to live in. This decreases the likelihood that a service member will be taken advantage of, especially since many active-duty military may not have the benefit of local real estate knowledge before their purchase.
A VA-assigned appraiser will check the property value and ensure it complies with the laundry list of VA loan appraisal requirements.
We’ve summarized them all for you below!
What is included on the VA Minimum Property Requirements (MPRs) list?
Topic Name | Simple Breakdown |
Marketable Real Estate | Must be a residential dwelling that would appeal to most buyers |
Space Requirements | Must be big enough for occupants to use comfortably and includes all needed facilities |
Access | Must be safely accessible year-round by foot or vehicle in all-weather conditions |
Encroachments | Any encroachments on property line must be resolved before loan is approved |
Drainage & Topography | Waste and water must flow off without ponding, no risk of mudslides, falling rocks, or avalanches |
Geological or Soil Instability, Subsidence, and Sinkholes | Must report any potential instability like cracks, sinkholes, foundation damage, or settlement problems |
Special Flood Hazard Area | Properties in SFHA must be covered by flood insurance; properties that flood regularly are not eligible |
Coastal Barrier Resource System | Properties located in CBRS are not eligible |
Non-Residential Use | Home must be used as primary residence and comply with local zoning requirements |
Zoning | Must comply with all applicable zoning ordinances |
Local Housing & Planning Authority Code Enforcement | If repairs are needed to bring property up to code, appraisal must be made subject to these repairs. |
Utilities | Must be safe and move-in ready with access to safe drinking water, sewer, gas, and electricity |
Water Supply & Sanitary Facilities | Must have continuous supply of safe water for drinking and hot water for bathing |
Individual Water Supply | Must be sufficient and safe for human consumption |
Individual Sewage Disposal | Must be adequate and not endanger public health |
Shared Wells & Sewage Disposal | Even if shared by 2 or more properties, it must be safe for human consumption and supply all properties equally |
Community Water Supply & Sewage Disposal | Must report that property is on community water/sewage and water/sewage must be safe and adequately supply all properties |
Hazards | Must be free of hazards that would prevent occupant from enjoying their property |
Defective Conditions | Any damage or issue that could affect the property’s value must be remediated before the VA loan is approved |
Mechanical Systems | Must be safe and in good working condition |
Heating | Must be able to maintain a temperature of at least 50 degrees in all areas with plumbing |
Leased Mechanical Systems & Equipment | Any leased equipment such as fuel storage, solar panels, wind systems, etc. must be included in the appraisal report, but will not affect the home value |
As long as equipment is not leased, their value and marketability are included in the VA appraisal report | |
Roof | Must be prevent entrance of moisture with no visible defects from the inside such as noticeable leaks |
Attics | If readily accessible, condition must be reported |
Crawl Space | Must contain adequate ventilation and an absence of excess moisture. |
Basements | Must inspect the basement for any signs of dampness or structural issues that may affect the health and safety of the occupants |
Swimming Pool | Must determine its condition and effect on property value. Damages will be subject to repairs. |
Burglar Bars | Must be equipped with quick-release mechanisms on at least one window per room unless there is an exterior door from the bedroom |
Lead-Based Paint | Any chipping paint on the exterior of the house must be remediated. If built before 1978, lead-based paint guidelines must be followed. |
Wood Destroying Insects/Fungus/Dry Rot | Any evidence of issues must be reported and any damage must be fixed; in areas with termites, a termite inspection is required |
Radon Gas | Builder must certify that radon-resistant construction techniques were used according to local codes for new construction properties |
Potential Environmental Problems | Any possible sources of contamination on the property must follow all local regulations and requirements |
Stationary Storage Tanks | Appraiser must report presence of any 1000+ gallon storage tanks containing flammable or explosive material if located within 300-feet of the property and determine possible effect on property value |
Mineral, Oil, and Gas Reservations & Leases | Must consider any property rights and adverse influence on neighboring properties |
High Voltage Electric Transmission Lines | No part of the residential dwelling may be located within a high-voltage electric transmission line easement |
High-Pressure Gas & Liquid Petroleum Pipelines | No part of the residential dwelling may be located within high-pressure gas or liquid petroleum pipeline easement |
Properties Near Airport | Appraiser must evaluate the impact of noise and light pollution on the property’s value. Borrower must acknowledge location of the property if in a Clear Zone or accident protection zone |
Are you looking for a detailed explanation of the VA’s minimum property requirements? Read the full list of VA MPRs here.
You’re still reading? Good. That list can seem a bit overwhelming. Don’t worry though, the VA appraisal is a good thing – it’s helping you determine whether or not the home will be a blessing in the long-run.
What happens if the home does not meet the VA requirements?
The VA will not approve a loan on a property that does not comply with the VA MPRs.
However, if the Seller agrees to repairs, the home can be appraised again to verify that it now meets requirements. Once the repairs are made, an appraisal can be rescheduled.
Difference between a VA Appraisal and a Home Inspection
Home inspections are not the same as appraisals. An appraisal is verifying value, while an inspection is verifying the condition of the home.
The VA Appraisal IS NOT a replacement for a whole home inspection. Although it is more extensive than a traditional appraisal, it is not in-depth enough to cover all of the issues that a home might contain.
The VA does not require homebuyers to get an inspection, however, the last thing you want is to decline the inspection thinking the appraisal covered it all, only to find out later that a latent or hidden structural issue is going to cost you $50,000+ to fix.
We highly recommend that you don’t skip the inspection, the $300-$500 you spend is worth the extra security blanket.
Short Appraisal Remedies: Tidewater and Reconsideration of Value
One more note on VA appraisals – if the purchase price is in question or the property under appraises, the appraiser has the option to speak to your lender to find support for the home’s value. This is a major benefit that only the VA program offers!
This can be done through two methods:
To learn more about both of these, check out our two-part series on VA Short Appraisals.
Still have questions? Let’s discuss! Give us a call at 316-669-5272 or email at loans@wevett.com
