VA Home Inspections

VA home inspections, this is one, especially if you’re working with real estate agents or you are a real estate agent who’s been dealing with the VA loan years ago. There are always some issues in what the VA requires for inspection, doesn’t require inspection, how does that all work?

Now, the VA loan is a little unique in that it has an appraisal process that, now here we’re in the year of 2023, there was now issued Congress to try to change VA appraisal. So maybe here in the next year or two, we’ll have some changes on it. But right now, the appraisal is a little unique in that it has a habitability check where they need to check certain parts of the home, but it is not an inspection whatsoever.

So, third-party inspection is something you definitely need to have, and it is the appraisal for VA loan is not a substitute for Home Inspections.

However, the VA loan does require a couple of actual inspections, separate from the regular appraisal and from third-party ones which you can do or not do on your own, and those things are pretty simple.

Most states are requiring some kind of WDO (wood destroying organism) or what a lot of people like to say, termite inspections. So you want to make sure you get that checked on.

Now, big change was made and that change is that now that can be paid for the termite inspection or really any of these other inspections. There’s some water well inspections and stuff on VA loans that need to be done if you have them.

Those can be paid by either party.

It used to be that sellers had to pay it and that was a pain point, especially when the market was really hot and there’s a lot of offers on homes and sellers were looking at an offer, it’s like, “Well, this guy’s having me pay for these inspections and this one isn’t, they’re going to go with the rate other loan that doesn’t require it.”

Well, the VA removed that which is great.

So now the buyer, the seller, heck, the agent, lender, they can take care of those costs for you. So, know that that’s something that if you don’t work often with VA loans, people might assume that.

So, it’s important to make sure that the listing agent, if you’re a buyer, it’s important to make sure listing agents understand that.

If you’re selling your home, just know that you don’t actually have to pay that cost.

They can pay that or anyone can really take care of it to help make sure that the veteran wins the home.

Now, that’s a big one though, right?

The pest inspections, which is the termite / wood destroying organisms. If you have a water well, just know that if it’s a primary source of water like you’re drinking off of the well, that’s something that’s got to be inspected as well. If it’s irrigation, that’s a different story. But know that, hey, if there’s water involved in the home that’s not on city water, there could be something there. Those are really the two major things.

Now, if you have your regular third home inspection and there’s some regular random requirements that you guys come to an agreement on, fix and change, that could change some of the needs from a VA underwriter – the person looking over all the documents that you present for the offer.

So just know that there could be some other stipulations, but the main thing is WDO, wood destroying organisms, WDO / termite, that’s the term. And then if you’re getting a place that has its own well, not city water and stuff – which is what most homes are – then you might need an inspection in that scenario too, which honestly, you probably want that inspection anyways.

We really hope this information helps you enable, empower, and go out there and win a home with the VA loan. Take care.