What Do VA Loan Inspectors Look For?

The Department of Veterans Affairs (VA) home loan program offers a significant benefit for eligible service members, veterans, and their families, often allowing for home purchases with no down payment. This program includes specific property guidelines to ensure homes financed are safe, structurally sound, and sanitary. The VA appraisal and inspection process is a fundamental part of determining eligibility for this unique loan. Understanding what VA loan inspectors look for is an important step for prospective homebuyers using this benefit.

Purpose of the VA Appraisal and Inspection

The VA’s property evaluation process serves a dual purpose: determining the home’s market value and assessing if it meets the VA’s Minimum Property Requirements (MPRs). These requirements ensure the home is safe, sanitary, and structurally sound for the veteran borrower. This protects the veteran from acquiring a home with immediate health risks or extensive, unforeseen repairs.

The primary objective is to safeguard the veteran’s investment. By ensuring the home meets these standards, the VA helps prevent borrowers from being burdened with uninhabitable properties or those with significant hidden defects. This also protects the lender by verifying the property serving as collateral is in acceptable condition. While a VA appraisal assesses property condition, it is distinct from a comprehensive home inspection, which is optional but recommended for a detailed evaluation.

Minimum Property Requirements

The core of what VA loan inspectors examine revolves around the VA’s Minimum Property Requirements (MPRs). These standards ensure that a home is habitable and does not present safety or structural risks. The inspector, who is a VA-approved appraiser, checks various aspects of the property against these established guidelines.

Regarding safety, electrical systems must be functional and protected from the elements, with no exposed wiring or obvious hazards. Heating systems must maintain a minimum temperature in all areas with plumbing. If a home was built before 1978, any chipping or peeling lead-based paint must be remediated. General safety concerns like missing handrails or unstable structures also fall under this category. Properties must have safe, year-round access from a public or private street.

Structural soundness is another area of focus. The inspector checks for:
Stable foundation, free of major defects.
Adequate roof with reasonable remaining life, free from leaks and substantial damage.
Walls, windows, and doors free of major defects, with functional windows.
Accessible, properly ventilated attics and crawl spaces, free of debris.
Proper drainage away from the foundation to prevent water accumulation and structural damage.

Sanitary conditions are also important. The property must have a clean, continuous supply of potable water. Sewage disposal systems, public or private, must be safe and sanitary. This includes ensuring septic tanks are in good condition and leach fields have proper drainage. Adequate plumbing, including hot water, is also required.

Pest infestation is a concern. Evidence of active wood-destroying insects or unrepaired structural damage caused by them must be noted. In many areas, a wood-destroying insect inspection is automatically required. The property must also possess functional utility, providing adequate living space for basic functions.

Common Issues Identified

During a VA appraisal, certain issues frequently emerge that can cause a property to not meet the Minimum Property Requirements. Roof damage, such as missing shingles, visible leaks, or an apparent end-of-life condition, is a common finding that necessitates repair. Non-functional heating or cooling systems, if installed, can also lead to a property failing the appraisal.

Evidence of water penetration, including leaks or signs of past water damage like stains or mold, often triggers a required repair. This extends to poor exterior drainage that causes water to pool near the foundation. Unsafe electrical systems, such as exposed wiring or non-functional outlets, are also frequently flagged.

Active infestations of wood-destroying insects or unrepaired structural damage from such pests are red flags. Peeling or chipping lead-based paint on properties built before 1978 also requires remediation. Properties may fail if they lack proper, year-round road access, or if essential utilities like potable water or sewage disposal are inadequate.

Addressing Inspection Findings

When a VA appraiser identifies issues that do not meet the Minimum Property Requirements, these deficiencies are documented in the appraisal report. This report outlines all required repairs. The seller is typically responsible for making these repairs.

For example, chipping paint on a pre-1978 home requires proper remediation. If an active pest infestation is found, treatment and repair of any resulting structural damage are mandatory. Once repairs are complete, a re-inspection by the VA appraiser is required to verify compliance. This confirms VA standards are met, allowing the loan process to proceed.