Marcus Marion, CMA™ If you’re using a VA loan to buy a home, understanding the VA minimum property requirements is crucial to your home-buying journey. These requirements aren’t just bureaucratic hoops to jump through, but safeguards designed to protect you and ensure you’re investing in a safe, sound home.
VA Loan Property Requirements: What Happens During an Appraisal?
When you’re in the process of buying a home with a VA loan, the property will need to undergo an appraisal by a VA-approved professional. This appraisal serves two important purposes:
- Determining the current market value of the home
- Verifying that the property meets all VA minimum property standards
According to the Department of Veterans Affairs, these minimum property requirements (MPRs) for VA loans exist to “protect the interests of Veterans, lenders, servicers, and VA.” It’s a safety net that ensures military homebuyers aren’t purchasing properties with serious issues.
Debunking VA Loan Appraisal Myths
It’s important to address that there’s a persistent myth about VA home property loan requirements being overly strict or that the appraisal process is incredibly invasive. This simply isn’t true!
In reality, the VA is mainly concerned with three basic things when it comes to VA loan home requirements:
- Is the property safe?
- Is it structurally sound?
- Is it sanitary?
Think of it this way:
- New or well-maintained homes should sail through the appraisal with no issues
- Older homes with normal “wear and tear” and a few fixable items can still qualify
- Homes with serious structural problems, safety hazards, or sanitation issues likely won’t meet the requirements.
The good news? Most houses on the market fall into one of the first two categories. It’s only the homes with significant problems that you need to worry about when using a VA loan.
Key VA Minimum Property Requirements You Should Know
The full list of VA loan property requirements can be found in VA Pamphlet 26-7 (the official handbook for their loan program), but here are the essential requirements you should be aware of:
- Safety and Sanitation
- Property must be free from health and safety hazards
- Must have safe, potable water with adequate pressure
- Must have effective sewage disposal system
- Should be located away from environmental hazards
- Properties with private wells and septic systems must meet local health department regulations and be in good working order.
- Structural Integrity
- Home must be structurally sound without major defects
- Roof should be in good condition with proper attic ventilation
- Crawl spaces and basements should be dry and free from moisture issues
- Property should generally comply with local building codes
- Essential Systems
- Must have functioning heating system (capable of maintaining at least 50°F)
- Plumbing and electrical systems should be in good working order
- If present, cooling systems should function properly
- Private wells and septic systems must meet local health department regulations
- Other Requirements
- Homes built before 1978 should be free from exposed lead-based paint hazards
- Some areas require termite inspections (and remediation if damage is found)
The bottom line? The VA loan program is designed for homes that are move-in ready – not properties that need extensive work just to make them habitable. Plus, you wouldn’t want to be saddled with a property that has a host of problems and no resale value.
Tips for Finding a VA-Approved Property
As a veteran or military homebuyer, here are some practical tips to improve your chances of finding a property that meets VA minimum property requirements:
- Focus on well-maintained neighborhoods – VA appraisers also consider the condition of the surrounding area
- Look for recently renovated homes, as they’re more likely to meet all requirements
- Avoid properties with obvious major repairs or structural issues
- Work with a real estate agent who has experience with VA loans and understands the requirements
Remember, these VA loan home requirements aren’t meant to make your home buying journey more difficult; they’re there to ensure you end up with a safe, sound home that’s worth your investment. With a little knowledge and preparation, finding a VA-approved property can be a smooth part of your home-buying process.
