VA home loan inspection requirements: What to know

While home inspections provide valuable insight into a home's condition, they aren't required – even with a VA loan. What are the VA home loan inspection requirements? You must have a VA appraisal, which assesses the home's value and ensures it meets the VA's minimum property requirements. A VA loan also may require a pest inspection, depending on the home's location.

It's important to understand the VA loan inspection criteria, as well as the differences between the inspections that are required and those that are not.

Does a VA loan require a home inspection?

The Department of Veterans Affairs doesn’t require a home inspection for home buyers taking out a VA loan. There is no specific VA home loan inspection.

A standard home inspection is optional but highly recommended to help buyers and sellers fully understand the home's condition.

During a home inspection, the inspector will examine the property and test its systems. You'll know exactly what you're buying, including any safety issues that need to be addressed or problems that need repair.

What inspections are required for a VA loan?

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

If an appraiser does find problems with the property, additional inspections may be required.

In some areas, home buyers using a VA loan are required to get a pest inspection. You can check the VA’s website to see whether a pest inspection is required for VA loans in your area.

VA appraisal vs. home inspection

A VA appraisal is designed to assess the home’s fair market value. Lenders use the appraisal to determine whether the home's value justifies the loan amount. Lenders won't let you borrow more than a home is worth.

The VA appraiser also ensures the home meets the VA’s minimum property requirements (MPRs). The VA appraiser provides their findings in an appraisal report.

It’s important to understand that a VA appraisal is not the same as a home inspection. A VA appraiser doesn’t carry out operational checks of mechanical systems or appliances, for instance. And while the VA MPRs do overlap with a home inspection, a home inspection focuses more on the condition, safety, and life expectancy of virtually every aspect of a property. This is summarized in a detailed home inspection report.

VA minimum property requirements

The VA established the MPRs to ensure the homes it finances are in good condition and meet its safety, soundness, and sanitation standards.

MPRs are put in place to protect military personnel and veterans from buying properties that aren't safe or clean to occupy.

Here are 10 VA home loan appraisal requirements you should know about.

1. Space requirements

All homes must have adequate living space, sleeping quarters, cooking and dining areas, and bathrooms for your family. The house 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 natural hazards, including flood zones, sinkholes, and environmental contamination. The MPRs consider any threat to physical health or safety a hazard. The same is true of anything that could affect the property's structural soundness.

4. Water supply, sanitary facilities, and sewage disposal

The property must have year-round access to safe and potable water for drinking, showering, bathing, and other hygienic uses. There must also be a supply of hot water and a safe sewage disposal system.

5. Gas, electricity, and other utilities

Every house must have adequate utilities, including electricity, natural gas, and a properly functioning HVAC system.

6. Home structure

The home must have well-maintained structures, including a roof, crawl space, basement, and attic, that are free of 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 problems that could make the home less stable or put the occupants in harm's way.

8. Proper drainage

Water must drain away from the foundation, and the site shouldn’t have any pooling of water.

9. Swimming pools

Swimming 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?

Ordering a home inspection when buying a home with a VA loan gives you a comprehensive picture of its condition before closing.

A VA home appraisal addresses some safety issues but isn't as in-depth as a standard home inspection.

While some home buyers may hesitate to order a home inspection due to the up-front cost, knowing if the home is in good condition can help you avoid buying a house that needs a lot of costly repairs.

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

It’s a good idea to order a home inspection as soon as you sign a purchase and sale agreement and enter escrow. The sooner you get the inspection results, the sooner you can proceed with the sale, ask the seller to make repairs, or reduce the price if the appraisal is lower than the offer, or back out of the sale.

Home inspection checklist for home buyers using a VA loan

Here is a general list of what a standard home inspection covers.

• Siding and trim: Cracks, rotting, and peeling paint.
• Roofing and gutters: Missing shingles, improper drainage, and damage.
• Doors and windows: Proper operation and sealing.
• Attic and insulation: Proper ventilation, leaks, and mold.
• Plumbing: Water pressure, drainage, and leaks.
• Electrical systems: Circuit breakers, proper grounding, and functionality.
• HVAC: Proper airflow, ventilation, and a working thermostat.
• Floors and ceilings: Sagging, bowing, and overall condition.
• Smoke detectors and carbon monoxide detectors: Proper location and functionality.
• Decking and patios: Rot, age, and structural safety.
• Fireplaces: General condition.

The bottom line: A VA appraisal is required, but a home inspection isn't

A home is a significant financial purchase, so it's a good idea to understand its condition in detail. When buying a home with a VA loan, a VA appraisal is required, but a home inspection is not. While the VA appraisal evaluates the home and ensures it meets minimum property requirements, a standard home inspection will give you a more complete understanding of the home's condition.

If you qualify for a VA loan and are ready to shop for a home, apply for a home loan today with Rocket Mortgage.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.