Do VA Appraisals Cause Problems?

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I’m using a VA loan — or I’m a home seller and I’ve accepted a VA loan offer from the purchaser — what are things I should look out for in the appraisal process?

My name’s Evan Kaufman, your VA loan originator, here to help walk us through this.

From the Buyer’s Perspective

So first, we’re going to look at things you should know from a buyer’s perspective — what to be aware of when you have your appraisal done.

Then we’ll flip it and look at it as a seller — what are some things you need to be ready for?

First up, I want to make sure everyone understands something:
Sometimes people assume that the VA loan comes with some kind of VA inspection to make sure the home can appraise properly. That is not the case.

The VA does coordinate an appraisal, and there are specific VA appraisers.
But here’s the thing — they’re just regular appraisers. Most of the time, they’re doing other appraisals as well. They just happen to have a VA designation.

So when people say, “Oh no, we’ve got to bring in this certain person from somewhere,” — no, it’s usually just the general appraisal population, and they’ve been approved to do VA appraisals.

The VA sends them out, and they perform a standard appraisal.
But on top of that, they do something I like to call a habitability check, where they’re looking at some Minimum Property Requirements (MPRs).

We actually have a great blog post that outlines these minimum property requirements in detail — but know this: it’s not a home inspection.

So, if you’re a buyer, be aware:
A VA appraisal — even with the MPRs — is not a substitute for an actual home inspection.

Common Issues VA Appraisers Look For

What are they looking for?

Some of the most common items we see:

Peeling paint
Windows that don’t open properly
Random safety issues

As I always like to say: If there are no holes in the walls, you’re probably going to be okay.

Other things that get flagged often:

Exterior railings missing, especially on steps
Trip hazards or other obvious issues

If you’re buying a newer home, we rarely see anything called out.
In fact, most VA appraisals come back as “as-is,” meaning they’re good to go with no changes needed.

But remember — MPRs can vary based on the appraiser. They each follow a standard code, but how detailed they are can differ. So again, don’t skip your home inspection.

Now, Let’s Talk to Sellers

Let’s put our seller’s cap on.
You just accepted a contract, and it’s a VA loan. You might be thinking:

“Oh no, I was told there’s a VA inspection. What is that?”

Well, good news — it’s not a traditional home inspection.
In fact, it’s less of an issue and typically less of a burden than a buyer’s inspection.

Again, the VA doesn’t conduct a separate “inspection.” They coordinate an appraisal that checks minimum property standards, but it’s not meant to nitpick like a full-blown inspection might.

If your home is newer — especially post-1980s or 1990s — we rarely see issues.
Sure, there are occasional exceptions, but they’re uncommon.

If your home is older but well-kept, again, we usually see no issues.

Just be aware, the most common red flags are:

Peeling paint
Window functionality
Major cosmetic damage (e.g., holes in walls, missing fixtures, ceiling damage)

Again, it depends on the appraiser, but don’t be afraid of it.

Timing: Appraisals and Inspections

In many cases, we schedule the VA appraisal alongside the inspection.
That way, you get everything — any issues — discovered around the same time.

Just keep in mind:
A home inspection is going to be far more thorough than what any VA appraiser will call out.

Bonus: The “Tidewater” Rule

Here’s a cool kicker about the VA loan and appraisal process.

While, yes, there are those habitability checks — and they can differ a bit from conventional — the conventional loan process can flag issues too. If there are glaring problems, they’ll either reduce the appraised value or make it “subject to” certain repairs.

But the VA loan has one unique advantage:
It includes a process called Tidewater.

We’ve got a great video on this — or just search for “Tidewater” on our YouTube channel or website.

Here’s how it works:

If the appraiser is having trouble valuing the property — meaning they think it may come in low — they are required to notify the lender before finalizing the report.

This gives the lender and agents an opportunity to submit additional comps or information that may support the contract value.
No other loan type allows this kind of access or communication with the appraiser.

Why It Matters

For buyers, that means you’re less likely to get blindsided by a low appraisal.
And for sellers, it gives you a chance to defend the value before losing the deal.

It helps avoid those awkward situations where a home underappraises, and the seller just says, “Too bad,” or the buyer has to come up with a lot of extra cash.

The VA loan helps mitigate that, thanks to the Tidewater process.