What are the Property Requirements for a VA Home Loan?
What you'll learn: The specific requirements your property must meet in order to be VA-approved.
EXPECTED READ TIME: 5 MINUTES
Before you can purchase your home using a U.S. Department of Veterans Affairs (VA) loan, your property must qualify for one. The VA home appraisal is the final step in qualifying for a VA loan, and is done after confirming both service and financial eligibility. The VA has established a set of standards known as the Minimum Property Requirements (MPRs) that are used to assess if a property can be purchased using a VA loan. These requirements were created to ensure that veterans’ homes are safe, sound, and sanitary so they aren’t burdened with expensive or dangerous repairs in the future.
The MPRs are assessed through a home appraisal performed by a VA-backed appraiser, which must be successfully completed before a lender can approve your mortgage application. This appraisal is different from a home inspection (an optional step in the home buying process) in which a third party checks the home for damage and flaws. In the case of a VA-assigned home appraisal, the appraiser has specific criteria to check.
What makes a property VA-approved?
If you’re wondering what the VA loan MPRs look like in detail, there’s a full chapter devoted to appraiser criteria in Chapter 12 of the VA’s Lenders Handbook (VA Pamphlet 26-7). In general, though, the MPRs fall under these categories:
- Residential property. The number-one requirement is that the home you’re planning to purchase is a residential property. This is because the VA home loan program was created to provide veterans with a primary residence.
- Space. The MPRs for space dictate that there must be enough room for everyone in the home to live, sleep, cook, dine, and use sanitary facilities. There isn’t a minimum square footage per person, so it will be up to the appraiser to decide whether there is enough space to live comfortably. This isn’t to say that small houses won’t be approved, but rather that the VA wants to ensure the home is large enough to reasonably inhabit.
- Safe access. The appraiser will check that you and your family have safe access to your home without having to go through anyone else’s property. They’ll also want to ensure that any road to your home is accessible in all kinds of weather, and that if you share that road with a neighbor, you have a plan set up to split the costs of maintenance to keep it safe, clean, and free of obstacles.
- Pests and rot. Termites and other pests are a nuisance for homeowners. The appraiser will check to make sure there isn’t any evidence of termite damage, specifically in regions where they are known to be prevalent. They’ll also look for any signs of fungus and dry rot.
- Stable roof. An often-cited issue for homeowners is a weak or leaky roof. The MPRs for a VA loan require that the roof must be reasonably durable for the foreseeable future, and it must not have any leaks where moisture can enter the home. Also, if there are three or more layers of shingles and the roof needs to be redone, the MPRs require that the old shingles be taken off before another layer is added.
- Clean water and sanitation. Your appraisal will need to show that your home has ongoing access to clean, healthy, potable water that you can use for drinking, bathing, cooking, and sanitation. You’ll also need to have hot water, an approved sewage system (whether it’s public or private), and sanitary restrooms.
- Heating system. In most areas, the home needs to be able to keep plumbing systems at 50° F or higher and have some form of heating. The heating system can take the form of a wood fireplace or an electric system, but in the case of a wood-based heating system, you may need to have a fallback system just in case.
- Mechanical systems. Any mechanical systems you have in your new home must be in working order, and the property must have functioning electricity. These systems will need to be safe, as determined by the appraiser, and well protected from the elements to prevent any accidents.
- Lead-based paint. It’s important that your home not contain any lead-based paint. Your appraiser will check this based on the year your home was built or renovated. If it was built before 1978, they’ll assume that lead-based paint was used, and will need to check all parts of the home for its presence. Any lead-based paint found will need to be removed and repainted. If the home was built during or after 1978, they will still check the home for the presence of lead-based paint, but they won’t assume it was used.
Keep in mind that this list covers the main home requirements, there could be additional requirements based on your geographic region. For example, termite damage is a larger concern in the wet Northwest. It’s a good idea to look through the full list of MPRs (see Chapter 12) before you begin your home search, so you’ll be able to choose properties accordingly and ask the right questions of the seller.
Answers to common questions about the minimum property requirements (MPRs) or a VA loan
- Do I need to get a home appraisal to qualify for a VA loan?
Yes, if you’re applying for a VA loan, a home appraisal is mandatory to be approved. The VA requires a home appraisal to ensure that the property you’re intending to buy meets the VA’s minimum property requirements (MPRs) and is safe, sound, and sanitary for habitation. A VA appraisal is different than a typical home inspection (which is an optional step in the home buying process). - Why do I need a VA appraisal to qualify for a VA loan?
The home appraisal will certify that the property you want to buy meets the VA’s minimum property requirements (MPRs), and that the property value matches the price you’re paying. - Are there septic tank requirements for a VA loan?
A septic inspection is always required for a VA loan, regardless of the visible condition of these systems. If an inspection doesn’t pass the local guidelines and requirements, remediation will be needed until the systems pass. - Are there VA loan requirements for a termite inspection?
In more than 30 states, a termite inspection is required for homes purchased with a VA loan. A good rule of thumb is to look at a termite infestation probability map and see if your home falls in the “moderate to heavy” or "very heavy" areas. - Who pays for the VA appraisal?
The homebuyer does. The lender typically bundles appraisal costs into the homebuyer’s closing costs. - Where can I find VA Pamphlet 26-7, with all the details for home requirements for a VA loan?
Chapter 12 of the VA’s Lenders Handbook (VA Pamphlet 26-7) has the complete list of minimum property requirements (MPRs) for a VA loan.
Once you’ve completed the VA home appraisal, you’ll know that both you and your property are qualified for a VA loan. Congratulations! You’re almost there. The next step is to close the deal and move into your new home.