- The VA does have a form of home requirements, known as the Minimum Property Requirements, to ensure the property is a safe and sound investment for the homebuyer.
A common question we receive is, “Do VA loans have home requirements?”
The Department of Veterans Affairs utilizes a series of Minimum Property Requirements, or MPRs, that a home must meet in order to qualify for a VA loan. These home requirements help ensure that veterans and military families have a safe, structurally sound, and sanitary place to call home.
VA Property Requirements
VA loan property requirements are assessed during the VA appraisal process.
MPRs cover basic issues that can affect the value of the property or its safety. These are mostly big-ticket items that present immediate or near-immediate problems for veterans and their families.
VA loan home requirements include:
- Working electric, heating and cooling systems
- Adequate roofing that will last the foreseeable future
- Sufficient in size for basic living necessities
- Clean, continuous water supply with sanitary facilities
- Free of lead-based paint
- Free of wood-destroying insects, fungus, and dry rot
- Safe and sanitary sewage disposal
- Accessible from an all-weather public or private street
- Attics and crawl spaces must be accessible and properly vented
Some heating systems, like solar or wood, are required to meet certain standards and have more traditional backup systems as well. These are items that not only protect the marketability of the property, but also the safety and comfort of the buyer.
In some climates, a heating system may not be needed, but that determination is left completely in the hands of the VA. Neither the seller nor the lender can make that call.
Other items such as roofs, termites, and ventilation fall under the MPRs. Specific requirements can vary based on the lender, local housing codes, VA guidelines, and more.
When it comes to a VA loan, keep in mind appraisers are looking for potentially major issues that revolve around the three S’s: safety, sanitation, and structural integrity; and this process is in place to protect the buyer against unexpected, and usually expensive, surprises.
Failing the MPRs
The VA wants homes that are move-in ready.
Problems with the property generally have to be corrected before a loan closes, although veterans can secure exemptions for some MPRs. In truth, these exemptions are more like extensions, as the problems will ultimately have to be corrected.
Borrowers whose prospective property fails to meet the Minimum Property Requirements will be hard-pressed to secure VA financing
Home Inspections and VA Loans
It’s also important to remember that the VA appraisal and MPRs do not replace the need for an independent home inspection.
The home inspection is typically a more in-depth and thorough look at the property and another layer of protection to help minimize surprises. Home inspections are typically a few hundred dollars but vary by location, home size, and features.
Home inspections aren’t required for VA loans, but they’re of significant value for homebuyers.
If you have any questions, feel free to reach out to me at 678-920-2747