Property Requirements for a VA Home Loan l 18 Rules Veterans Should Know (2024)

VA Loan Appraisal Requirements: VA MPRs

Last updated on February 6th, 2024 Luke Skar Leave a comment6,848 views

Property Requirements for a VA Home Loan l 18 Rules Veterans Should Know (1)

To offer a guarantee on the VA loan program, the Department of Veterans Affairs wants to take every step possible to make sure that the home is worth the asking price and the VA wants to ensure that the property you’re buying is suitable for living. The inspection is the actual visit of a qualified VA appraiser who then makes a report about the property during the VA loan process. The property must meetVA minimum property requirements (MPRS) which are guidelines for the condition of the property.

Checking the Property for Problems

While reviewing the property, the VA appraiser is checking the structural soundness of the property and looking out for problems that could make the home uncomfortable or unlivable for the veteran. Here are some of the top areas that the VA appraiser is considering.

Windows – Any broken window will need to be repaired before the VA loan can be closed. A broken window can cause higher utility costs and possibly invite crime through a negative image.
Electrical system – The appraiser will review the home’s electrical system to make sure there is proper lighting and working outlets for necessary appliances.
Heat/Air – Depending on the part of the country where the home is located, having proper heat or proper air conditioning can be a necessity. For example, in the upper northern states where temperatures can drop well below freezing at night during the winter, having a proper source of heat can save lives. On the other hand, in the deep south where temperatures can get up to 100 or above during the summer, a good working air conditioner can prevent health problems.
Proper roof – The VA appraiser must thoroughly check the condition of the roof to see if there are any holes or leaks. A small leak can turn into a major problem if left unattended and lead to thousands of dollars of damage.

The VA rules require that if there is evidence of any of these problems discovered during the VA home appraisal (don’t confuse the VA appraisal with the home inspection), the seller will need to make the necessary repairs before the VA loan can be closed.

Safety for Home Buyers and Lenders

The purpose of the VA appraisal report and the VA’s minimum property requirements is to ensure that the home is safe for living. Considering that the VA loan was originally designed to provide easy access to homes for veterans returning from World War II, it makes sense that VA approved lenders would want the home to be safe for these soldiers.

Having a safe home that is in good working condition also provides a sense of security for the VA lender and their investment in the property.

Minimum Property Requirements for a VA Loan

When it comes to a home purchase that is under consideration for a VA mortgage, there are no set rules about things such as the square footage of the home, local building codes, the minimum number of rooms, or the style of the home. The rules for the VA Minimum Property Requirements referred to as MPRs, deal with other aspects of the home.

The VA requires these rules to qualify for a VA loan

Access – VA Loan Requirements

Access to the home – the veteran must be able to access the home from a public road. The road will need to have an all-weather surface. If there is a private road that allows access to the home, there must be a legal easem*nt in place.
Wall access – There should be enough space between the veteran’s home and the neighboring homes that allow for access to the walls to handle any normal maintenance issues.
Access to unit and yard – The veteran must be able to gain access to the unit without the need to first go through a different unit. If the unit has a rear yard, the veteran must be able to access it without illegally trespassing through another yard or unit.

Characteristics of Property – VA Home Requirements

Residential – first and foremost the property must be a single-family, residential home that can be marketed as a real estate property.
Utilities – The common utilities such as electricity, natural gas, running water, and sewer systems must be independent from other surrounding units.
Sewage and septic – the unit must have a proper sewage disposal system along with sanitary facilities.
Intended Use – The unit must be the veteran’s main residential property. Rental and commercial properties are not allowed for a VA loan.
Heat – The unit must have a source of heat that provides a safe and comfortable environment. If the main source of heat is a wood-burning stove, the unit will also need to have a secondary system that can provide a minimum of 50 degrees of air to circulate among the plumbing.
Water – The unit needs to have a reliable water supply that is fresh, sanitized, and includes hot water.
Ventilation – To prevent problems that can occur from excess heat buildup or too much moisture, areas above the house such as an attic, as well as areas under the home like basem*nts and crawl spaces, must have necessary vents.
Living area – The unit needs to have adequate room for cooking, living, dining, and sleeping.

Along with these characteristics and the aforementioned major areas, there are also a few potential problem areas that need to be noted.

Lead paint – All properties that have paint from before the year 1978 will be automatically deemed to be lead-based paint. If the paint is damaged in any way, such as peeling, cracking, or chipping, then it is required that the paint has to be corrected.
Property impairment – An existing condition that affects the safety, soundness of the structure, or the sanitation condition of the home must be repaired. Examples could be rotten wood on the exterior of the home, leaks in the plumbing system, growth of fungus, or poor workmanship.
Adequate draining – The yard, walkways, and driveways must be correctly graded to allow rainwater to drain and prevent standing water.

The Veterans Administration wants to take all precautions to make sure the properties that they insure do not present any dangers to the homeowner.

Summing Up VA Home Loan Property Requirements

All of these VA minimum property standards are above and beyond the normal scope of a home appraisal. The typical conventional loanappraisal is designed to determine the home’s value in comparison to the surrounding area. The VA loan inspection requirements are meant to do everything possible to assess the home’s condition and level of livability before the veteran moves in and takes up residence.