How Long Does a VA Appraisal Stay With a Property?

A VA appraisal is a specific evaluation required for home loans guaranteed by the U.S. Department of Veterans Affairs. This process determines if a property meets the VA’s Minimum Property Requirements (MPRs), which are health and safety standards. It also establishes the property’s fair market value, ensuring the loan amount does not exceed the property’s worth.

Understanding VA Appraisal Validity

A VA appraisal report has a defined period of validity, which dictates how long its findings are considered current for a specific loan application. For existing residential properties, the appraisal is generally considered valid for six months from the date the appraiser inspects the home. For new construction, this validity period can extend up to 12 months.

While the appraisal is initially tied to a specific loan application through a VA case number, the value opinion and the findings regarding Minimum Property Requirements are associated with the property itself for the duration of its validity. If an appraisal comes in lower than the agreed-upon sales price, a process known as the Tidewater Initiative may allow for additional comparable sales data to be submitted for reconsideration. However, the core validity period for the appraisal report remains fixed.

Conditions for Appraisal Re-use

An existing, valid VA appraisal can often be re-used for the same property under certain conditions, even if the initial loan transaction does not close. If a VA loan falls through, the appraisal report and its findings can frequently be transferred to a new VA-eligible buyer or a different lender for the same property. This re-use is permissible as long as the appraisal remains within its original validity period. The VA case number plays a significant role in facilitating this transferability.

This is particularly useful if the property is quickly put back on the market after an initial deal collapses. Re-use is generally permitted if no significant physical alterations have been made to the property and market conditions have not drastically changed since the original appraisal date.

When a New Appraisal is Required

There are several circumstances under which a new VA appraisal becomes mandatory for a property, even if a previous appraisal once existed. The most straightforward reason is when the original appraisal’s validity period has simply expired. Once the six-month or 12-month window closes, a new appraisal is universally required to establish current market value and property condition.

Significant physical changes or improvements made to the property since the last appraisal will also necessitate a new evaluation. Substantial renovations, additions, or repairs could alter the property’s value or its compliance with MPRs, making a previous appraisal obsolete. Similarly, dramatic shifts in local market conditions, such as a rapid increase or decrease in home values, may also trigger the need for a fresh appraisal to reflect the current economic environment accurately.

Furthermore, if the property is being purchased with a different loan type, like a conventional or FHA loan, a new appraisal specific to those loan programs would be required, as VA appraisal standards and reports are unique. Specific VA loan types, such as a VA cash-out refinance, mandate a new appraisal regardless of any prior evaluations on the property. If an original appraisal’s value was too low and a reconsideration process did not resolve the discrepancy, a new appraisal might be requested to support a higher value or address unresolved issues.