VA loan inspection requirements: What to know

VA loans are designed to help eligible veterans, active-duty service members, those who’ve served in the National Guard and Army Reserve, and surviving spouses achieve homeownership. When taking out a VA loan, you’ll likely have questions about the requirements you must meet – including, perhaps, any VA home loan inspection requirements.

Discover what you need to know about VA loan house inspection requirements, which really aren’t “inspection requirements” at all in the strictest sense.

Does a VA loan require a home inspection?

The Department of Veterans Affairs (VA) doesn’t require a home inspection for home buyers taking out a VA loan. A VA loan home inspection, which is essentially the same as a traditional home inspection, is optional but highly recommended by many lenders. In this respect, VA loans are like Federal Housing Administration (FHA), conventional and most other types of home loans.

As with any inspection, when you get a VA home inspection, the inspector will take a much closer look at the property and its functions than you could take on your own. You’ll know exactly what you’re getting into, including any issues you should fix right away or that may be problematic in the future.

What inspections are required for a VA loan?

In some geographical areas, home buyers using a VA loan are required to get a pest inspection. You can check out the VA’s website to find out if a pest inspection is required for VA loans in your state.

While VA loans don’t require a home inspection, they always require a VA home appraisal to determine the property’s value for lending purposes. This special appraisal isn’t as in-depth as an inspection, but it will give you a good idea of whether the home is suitable for VA financing.

Furthermore, if an appraiser uncovers other issues with the property, additional assessments may be required.

VA appraisal vs. home inspection

A VA appraisal is designed to assess the home’s fair market value. Lenders use this number to determine a loan amount and ensure the home has enough collateral in it if you default on the mortgage loan. The VA appraiser must also ensure the home meets the VA’s minimum property requirements (MPRs). The VA appraiser provides their findings in an appraisal report.

VA minimum property requirements

The U.S. Department of Veterans Affairs established the MPRs to ensure the house is in good condition and meets the VA’s standards for property safety, soundness and sanitation.

MPRs are put in place to protect qualifying present and former members of the military from purchasing a property that isn’t up to standard. VA home appraisals involve evaluating whether the home meets the MPRs, so some people may confuse the VA appraisal with an inspection.

Here are 10 VA home loan appraisal requirements and what you should know about them:

1. Space requirements: All homes must have adequate living space, sleeping quarters, cooking dining areas and bathrooms for your family. The home doesn’t have to be large – just big enough to meet your family’s needs according to the VA guidelines and local building codes.

2. Access and encroachments: All properties must have year-round street access to the home, and any private roads must have a permanent easement and be managed by a homeowners association (HOA). The property must also not encroach on another property.

3. Hazards: The property must be free of any natural hazards, including flood zones, sinkholes and any type of environmental contamination. The MPRs consider any threat to physical health or safety a hazard. The same is true of anything that could affect the structural soundness of the property.

4. Water supply, sanitary facilities and sewage disposal: The property must have year-round access to safe and potable water used for drinking, showering, bathing and any other sanitary uses. There must also be a supply of hot water, sanitary facilities to use for all family members, and a safe sewage disposal system.

5. Gas, electricity and other utilities: Every house must have adequate utilities, including electric, gas and a properly functioning HVAC system.

6. Home structure: The home must have well-managed structures, including a roof, crawl space, basement and attic that are free from pest damage, mold, mildew or other infestations. Structures should be ventilated and easily accessible.

7. Pest inspection, dry rot and other signs of deterioration: Appraisers must note damage caused by termites, wood-destroying insects, pest infestation, dry rot or any other defects that cause structural issues with the home. The appraiser must look for issues that could make the home less stable and/or put the occupants in harm’s way.

8. Proper drainage: The home must be able to drain away from the foundation, and the site shouldn’t have any pooling of water..

9. Pools: Pools are allowed for VA financing, but they must be in good working order.

10. Proximity to airports: If a property is located near an airport, the VA appraiser must evaluate whether any airport noise or other concerns will affect the home’s livability, safety and fair market value. If a qualifying current or former member of the Armed Forces wants to purchase a property in a Clear Zone, which means it’s within a certain distance from an airport runway, the buyer likely must sign some paperwork acknowledging the proximity.

Should you get an inspection for a VA loan?

Again, the VA appraisal isn’t as in-depth as a VA home inspection. For a full understanding of the property’s condition, it’s always best to go with a home inspection.

While some home buyers may hesitate due to the upfront cost of a home inspection, ponying up a few hundred dollars for one can save you thousands of dollars in the long run by empowering you to negotiate a lower sales price or ask the seller to repair issues before closing on the home.

When should you have your home inspection done for a VA loan?

It’s always a good idea for the borrower to order a home inspection as soon as they sign a purchase contract. Get the inspection going so you can decide early on in the process if you no longer want to buy the home.

VA loan inspection requirements

Because the VA doesn’t require a home inspection, no particular inspection requirements need to be met. A home inspection for a property being purchased with a VA loan is the same as one for a home bought with another type of home loan.

Home inspection checklist for home buyers using a VA loan

The inspector will carefully examine every part of the home’s interior and exterior. This includes the property’s:

• Siding and trim
• Roofing and gutters
• Doors and windows
• Attic and insulation
• Plumbing and electrical systems
• HVAC
• Floors and ceilings
• Smoke detectors and carbon monoxide detectors
• Decking and patios
• Fireplaces

Reasons to get a VA loan inspection

many people who use a va loan to finance a home purchase carry good reasons for having their potential future home inspected. The benefits include:

• Knowledge: A more complete picture of the property you’re buying. It’s important to be fully informed when making such a large and significant purchase.
• Negotiating power: If you included an inspection contingency in your purchase agreement, you’ll have the opportunity to negotiate repairs or a lower purchase price with the seller if the results of home inspection reveal issues. In the event you and the seller can’t reach an agreement, you can walk away from the sale without losing any money if you have a home inspection contingency.

The bottom line

Although VA loan inspection requirements don’t technically exist, getting a home inspection is highly recommended. Even though the VA appraisal and its minimum property requirements are quite extensive, nothing compares to a full-blown inspection. Regardless of what type of loan you decide to use, you’ll want to make sure the house is fully appraised and/or inspected so you can make the strongest possible offer.

Getting your initial mortgage approval early in the home buying process will help you understand how much home you can afford and save you time as you search houses. If you’re ready to begin, start an application for initial mortgage approval with Rocket Mortgage^® today.