VA appraisal guidelines for 2021

 

VA appraisal - Ability Mortgage Group

VA appraisers conduct a proper inspection of a given property to determine its market or true value for a VA loan guaranty. VA appraisers consider the overall condition of a property before reaching a conclusion. However, the VA appraisers cannot prevent a loan decision solely based on a small issue like normal wear and tear or deferred maintenance.

 

VA appraisal eligibility

Must hold a valid residential certification provided by the state where VA appraisal is scheduled to be conducted.

  • Every applicant must prove that his/her behaviour, experience and the kind of work he has at least five years experience in qualifies him or her to conduct an appraisal and give the correct value of a property within a given area.
  • Submit relevant recommendations for further scrutiny from other qualified appraisers.
  • The applicant must not engage in any pursuits in which there may be, or seem to be, any conflict of interest between his or her performance and employment.
  • Staff members of the Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), and the postal service are not eligible.
  • Government employees are bound by federal and state guidelines, concerning any possible or actual conflict of interest that may arise.

Field stations should conduct a search via the Credit Alert Interactive Voice Response System (CAIVRS) to check if the applicant is delinquent or in actual default on a federal debt. If an applicant is delinquent or in default on a federal debt, there should be acceptable evidence of a repayment plan and a promissory note for the full balance.

 

 

Ability Mortgage Group

VA appraisal minimum property requirements

Marketability

The property must be a single-family home or a multi-dwelling unit with four units or less. The property must be a standard and readily marketable real estate entity. This implies that it can be quickly sold in the future. In other words, it shouldn’t sit on the market for long waiting for potential buyers to show interest.

Space and structure requirements

The property must allow the applicant – and his or her family members – enough space for comfortable living, cooking, dining, sleeping and other day-to-day activities. The residence must also have good sanitary facilities.

Property accessibility

The property must be accessible by car or foot from a private or public road throughout the year.

Encroachments

Encroachments occur where a neighbor constructs something extending over your residence. A seller may also be encroaching on another property in the neighborhood. An encroachment is an issue of concern because it hinders the use of the residence for the individual whose property has been encroached upon.

Either way, the appraiser must report it. And someone will have to resolve it before you get your VA loan.

  • Drainage system & topography
  • Local drainage laws must be strictly followed. Surface water and waste should flow out of your property safely and quickly. The water must also not pool around the area.
  • Ground Conditions, sinkholes and subsidence
  • These involve the geological risks associated with the site. You don’t want to realize that you have any of these when you have already purchased the property.
  • If your appraiser considers any of these to be a geological risk, then a professional geologist should be called to give an expert opinion. If there’s any damage to the property due to such risks, a licensed contractor should be called in to repair it first.
  • Special flood hazard areas (SFHAs)
  • If you’re looking to purchase a property that tends to flood often, you won’t be eligible for a VA loan. Even high-risk areas that don’t flood often have their own restrictions.
  • Non-residential purposes
  • VA’s minimum property requirements are actually not an obstacle to you buying a house for both residential and non-residential purposes. However, there are some restrictions. The home must mainly be for residential purposes.

VA appraisal checklist

VA appraisers check for compliance based on some basic rules set by the Department of Veterans Affairs.

If you are looking to buy a home, the VA appraisal checklist can give you a good idea of what to expect. Addressing these issues will not only ease the appraisal process, but also attract more potential buyers.

Here are some common areas to consider:

      • Any inaccessible spaces in the home, including crawl spaces and attics.
      • Electrical issues like exposed wiring
      • Unsafe outbuildings
      • Broken windows
      • A faulty garage door opener
      • A faulty safety feature of the garage door
      • Water stains
      • Rotting wood on doors, garage doors and fascia boards
      • Missing or loose staircase handrails
      • Little insulation or inadequate HVAC system
      • Utilities shut off
      • Roof damage
      • Pest damage
      • Chipping paint on older properties

    VA appraisal timeline

    VA appraisal is usually done within 10 days, but appraisal timelines vary from one location to another.

    This is because VA provides timeline requirements for individual states, but they actually serve as guidelines rather than real requirements. If repairs are necessary, the VA appraiser must conduct a reinspection, so prepare for more time when determining the closing date.

    How to order the VA appraisal

    • Click on your state for the current fee schedules and the number of days required for completion.
    • Purchase the Contract.
    • VA Amendatory Clause (aka Escape Clause) is necessary for Purchase Loans
    • Condos must appear on VA’s Approved Condo List
    • New Construction builders must appear on VA’s Approved Builder List
    • Proposed Properties and New Construction must include the Builder’s Certification
    • A new VA appraisal should not be ordered when there’s an existing appraisal request on the home.

     

    Find out More Information about Second home mortgages with the Ability Mortgage Group in Maryland at 410-827-5111

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