Tips to Pass a VA Appraisal

The Department of Veterans Affairs offers veterans an accessible path to homeownership. However, stringent requirements make VA loans unique among mortgage options. Before the VA will guarantee a home loan, the property must pass a VA appraisal.

In this article, we’ll walk through what a VA appraisal involves and share tips to help your home pass.

What Is a VA Appraisal?

A VA appraisal estimates a home’s value. Mortgage lenders require appraisals to confirm the home is worth the loan amount, since the property serves as collateral. If you stop repaying, the lender can foreclose and sell the home to cover the outstanding balance.

The VA specifically ensures that VA-backed loans don’t exceed a property’s fair market value. During closing, a VA-approved appraiser reviews the property and comparable sales to determine its value. If the appraised value comes in lower than the contract price, the VA will deny the loan.

Beyond value, the VA requires homes to meet minimum property requirements (MPRs), which are habitability standards ensuring veterans can safely occupy the property. The in-person appraisal includes a visual inspection to confirm the home is safe, sanitary, and structurally sound. If a home fails these standards, the VA won’t guarantee the loan.

Here are four tips to help your home pass a VA appraisal.

VA Appraisal Tip #1: Check the Comps

A VA appraisal’s primary objective is to determine a property’s fair market value. While a home’s quality and condition factor into its value, market comparable sales, or “comps,” play the largest role.

Comps are recently sold properties in the area that are similar to the home you’d like to purchase. For instance, if you want to buy a two-bedroom, one-bathroom townhouse, the appraiser will research recent sale prices for similar townhomes in the neighborhood.

If comps don’t support your contract price, the property won’t appraise. For example, if you agreed on $200,000 but similar homes recently sold for $125,000, the appraiser likely won’t value your home at $200,000, and the VA won’t approve the loan.

To avoid heartache, talk to your real estate agent about local market comps before you make an offer.

VA Appraisal Tip #2: Find an Experienced Real Estate Agent

If you don’t possess in-depth knowledge of real estate market analysis techniques, you should hire a real estate agent.

Remember, buyers don’t pay real estate agent commissions – sellers do – so you don’t lose anything by working with an agent.

An agent experienced with VA loans may be able to look at a property and tell you if it won’t pass a VA appraisal. This insight can save you a ton of time, money, and stress.

VA Appraisal Tip #3: Understand VA MPRs

Experienced real estate agents can also help you determine whether a property meets VA MPRs.

For instance, a property with a damaged roof likely won’t meet VA MPRs, meaning it wouldn’t pass an inspection. Knowing this can save you the hassle of making an offer, only to find out the VA won’t back it later.

Here are some of the broad property criteria VA appraisers look for in homes:

• Safe and functional mechanical systems
• Adequate heating systems
• Adequate roofing
• No signs of leaks in basements and crawl spaces
• No sign of termites, dry rot, or fungus growth
• No lead-based paint (must be remediated if it existed in the past)

When you look at a home, any of the above should trigger some serious red flags.

VA Appraisal Tip #4: Agree on a Reasonable Closing Timeline

Many home purchases close within 30 to 45 days after going under contract, though VA timelines can vary by market and lender.

To accommodate the appraisal process, make sure you and the seller agree on a reasonable closing timeline.

VA appraisals can take one to two weeks, but any issues that arise may stretch the timeline.

For instance, if an appraiser identifies a broken air conditioner, the home may fail to meet the VA’s minimum property requirements. Fixing the HVAC could take a couple of weeks.

While VA appraisals can go smoothly, it’s better to provide a buffer in your closing timeline.

Bonus Tip: Always Get a Home Inspection!

A VA appraisal is not the same as a home inspection. Inspections go into far more detail and can help you identify major property issues that a VA appraisal might miss.

The VA does not mandate home inspections, but it’s worth the additional expense to uncover problems before you purchase a home.

Even if the inspection doesn’t uncover any major issues, it will provide a good overview of your home, its appliances and the mechanical systems.

Final Thoughts

A VA appraisal is designed to protect both you and your lender by confirming the home is fairly priced and meets basic safety standards. While the process can feel strict compared to other loan types, understanding how value and minimum property requirements work can help you avoid surprises.

By preparing ahead of time and understanding what appraisers look for, you can navigate the process more smoothly and keep your home purchase on track.

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