VA Appraisal Requirements What You Should Know

Over $148 billion in VA loans were issued in the 12 months leading up to August—proof that VA financing remains a powerful tool for veterans and active-duty service members looking to buy a home. With no required down payment and competitive interest rates, it’s no wonder so many borrowers choose a VA loan.

However, because VA loans are backed by the government, the property you’re buying must meet certain Minimum Property Requirements (MPRs). These MPRs ensure the home is safe, sound, and structurally secure. Keep in mind that the VA does NOT require a separate home inspection—what they do require is a VA appraisal that also checks these basic MPRs. If you need a vetted lender or more details, reAlpha can connect you with resources tailored for VA financing.

A lot of folks get confused between an appraisal and an inspection—but they’re not the same:

Determines the property’s fair market value and ensures it meets the VA’s Minimum Property Requirements (per VA Pamphlet 26-7, Chapter 12). This step is mandatory on all VA loans.

A thorough, independent evaluation of the home’s overall condition. Inspectors look for defects or potential issues (like faulty wiring, mold, or roof leaks). The VA strongly encourages borrowers to get an inspection for peace of mind, but it’s not required for loan approval.

According to the VA Lenders Handbook (VA Pamphlet 26-7, Chapter 12), here are some key areas the VA appraiser evaluates:

The home should be free from major hazards or structural defects that would threaten the occupants’ health or safety.

Properties must have safe, adequate heating and functional electrical systems. Air conditioning is not always mandatory, but if it’s present, it should be in working order.

The VA wants the roof to be free of leaks or major damage. While you might see old references to a “two-year life” rule, the official standard is simply that the roof must protect the dwelling and be without obvious defects like missing shingles, holes, or leaks.

Year-round access to potable water and a reliable drainage system is required. Homes in areas prone to flooding or drainage issues may need extra documentation.

If the appraiser sees signs of termite damage or other infestations, the VA may require further inspection or repairs.

The property can’t be in an area with conditions that seriously affect the health and safety of residents (e.g., unstable soil, certain high-noise zones, etc.). Proximity to airports alone isn’t disqualifying; however, if noise or safety hazards are excessively high, it may need additional review.

Pools aren’t specifically prohibited. The VA doesn’t have a separate “pool inspection” requirement—just that the pool (and related areas) won’t negatively impact the property’s structural integrity or safety.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance - all in one place.

Get Pre-approved

• Repairs: You can ask the seller to fix any issues flagged by the VA appraiser. Once the repairs are done, the appraiser might return for a re-check.

• MPR Waiver: In certain limited cases, the buyer and lender may seek an MPR waiver from the VA if the deficiency doesn’t pose a direct health/safety hazard. Waivers aren’t guaranteed and often depend on the lender’s comfort level.

• Negotiate or Pay the Difference: You might ask the seller to lower the sales price, or you can cover the difference in cash.

• Tidewater Initiative: If the appraiser suspects the home won’t appraise at the contract price, they may invoke “Tidewater,” alerting the lender and giving you a 48-hour window to provide additional comparable sales data.

• Reconsideration of Value (ROV): If Tidewater has already been completed, you can still request an ROV by submitting new, relevant comps or data supporting a higher value. The VA appraiser or the VA itself will review this information.

Even though the VA doesn’t require a formal inspection, getting one is a smart move. An inspector will:

• Check the home’s plumbing, electrical systems, foundation, and more in greater detail than an appraiser typically does.

• Provide a detailed report, so you’re aware of any potential future problems.

• Give you leverage to negotiate with the seller on repairs or concessions before closing.

• $0 Down Payment & No PMI: That’s a huge advantage over many conventional loans.

• Competitive Rates: VA mortgages often come with lower interest rates compared to other loan types.

• Lenient Credit Standards: Many lenders allow lower credit scores on VA loans than on conventional options.

Of course, you’ll also pay a VA funding fee unless you’re exempt (e.g., due to a service-connected disability), but many borrowers find the pros outweigh that extra cost.

If you’re ready to move forward with a VA loan and want to make sure you’re working with the right lender, check out reAlpha. They can connect you with industry professionals who understand the VA appraisal process, MPRs, and all the nuances of getting your loan closed without surprises.

You generally need to be a veteran, active-duty service member, National Guard member, or Reservist with sufficient service history, as outlined by the Department of Veterans Affairs. You’ll also need a Certificate of Eligibility (COE).

No. VA loans are famous for allowing 0% down—one of their biggest perks.

Primarily owner-occupied homes, including single-family houses, multi-unit properties (up to four units), townhomes, and certain VA-approved condos or manufactured homes. If you’re eyeing a condo or manufactured home, double-check that it meets VA guidelines.

Not by the VA. Only the VA appraisal is mandatory. A home inspection is optional but highly recommended.

Your lender and seller should coordinate to address any issues flagged. If you can’t reach an agreement, you may consider backing out or applying for an MPR waiver—though the latter is rarely approved if the problem poses health or safety risks.

Remember: The VA appraisal is your official gatekeeper to ensure both value and property condition, but a home inspection is your best friend when it comes to finding hidden problems. By knowing the difference—and by taking advantage of your VA loan benefits—you can shop for a home with confidence. And if you need extra help lining up a solid lender or smoothing out the entire process, reAlpha is there to guide you every step of the way.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance - all in one place.

Get Pre-approved