VA Loan Appraisal Process: What Veterans Should Expect

If you’re planning on buying a home using a VA loan, the appraisal is one step you’ll encounter early in the process. While it may feel technical (or even unnecessary) at first, the goal is simple: to make sure the home is safe, fairly valued, and a good fit for VA financing.

Here’s what to expect from the VA loan appraisal process, what the appraiser looks for, and how a lender like JustChoice can simplify the entire process.

The VA Loan Appraisal Process: Why It’s Required

With a VA loan, the appraisal is required for a few reasons:

• The VA guarantees a portion of the loan, so they must confirm the property is worth the amount being borrowed.
• It ensures the home meets the VA’s loan appraisal requirements, commonly known as Minimum Property Requirements (MPRs).
• It protects both the borrower and the lender. The appraisal reduces the risk of veterans taking on a home with hidden issues or major repair needs.
• It protects taxpayer-backed funds. Since VA loans are supported by federal resources, the program must ensure every financed property is a solid investment.

What the Appraiser Looks For

During the appraisal, the VA-approved appraiser reviews two main areas: value and condition. This follows a general VA loan appraisal checklist, but it’s more straightforward than most buyers expect.

Here’s what they look for:

• Safety: Issues like missing handrails, exposed wiring, or broken steps.
• Habitability: Working plumbing, electricity, heating, and a roof that doesn’t leak.
• Overall condition: The home should be free of major structural problems or hazards.
• Market value: The appraiser uses recent comparable sales to determine whether the home is priced appropriately.

Keep in mind that this is not a full home inspection, but it does confirm the home meets basic VA loan appraisal guidelines.

Minimum Property Requirements Explained

The VA’s Minimum Property Requirements ensure the home you’re purchasing is livable from day one. Some key requirements include:

• A solid roof and foundation
• Safe access to the property
• Functional heating
• Working electrical and plumbing systems
• No major structural issues or health hazards

If the home doesn’t meet these standards, the appraiser will note what needs to be fixed before the loan can close.

What to Do When Appraisals Come in Low

Sometimes an appraisal may come in lower than expected. This can happen due to limited recent sales, an inflated list price, or property issues that impact value. If it does, you still have options:

• Request a Reconsideration of Value (ROV)
• Renegotiate the price with the seller
• Use seller credits or concessions
• Decide whether the home still fits your goals

If the appraiser identifies repairs that need to be completed to meet VA Minimum Property Requirements, those fixes generally have to be addressed before the loan can close. In most cases, the seller takes care of the work.

JustChoice: We’re Here to Help You Move Forward

VA loans have a few extra guidelines, but you don’t have to sort through them alone. At JustChoice Lending, we walk you through the appraisal process, explain what the appraiser is looking for, and help you understand your options if anything needs attention.

We’re a non-commission lender, so our job is to look out for you—not to push a product. If questions come up, you’ll have a team that’s easy to reach and genuinely wants you to feel comfortable with each step. Contact us today to start your loan!