The VA appraisal is an assessment of the property’s value and condition by an independent VA appraiser. VA appraisals are required for every VA purchase loan. But don’t mistake the appraisal for a home inspection, which provides a more in-depth review of the home's physical condition. A home inspection is typically conducted once you are under contract and in your option period and can often expose issues that may delay a sale and or disqualify a home during a VA appraisal.
Heat
Heat is an important element of these inspections. There must be an acceptable and efficient source of heat for the home. This means the heat must provide comfortable and appropriate living conditions. If the only source of heat in the house is a wood-burning stove, it must be complemented with an alternative system that can maintain a minimum of 50-degree temperatures in the plumbing areas of the house.
Windows
The VA loan appraisers will also be very strict about broken windows. All broken windows must be properly repaired before the final report issued and/or the home is approved. This is because broken windows not only affect the heating bill, but they invite burglaries and present a negative image of the house to the neighborhood. The VA feels that buyers should be able to have a sense of pride about their recent purchase.
Electricity
Electricity is another element to be taken seriously by VA lenders and home-buyers. All homes must provide acceptable electricity for lighting and must have the proper equipment for doing so.
Roof Leaks
VA home loan inspectors will also check carefully for any holes in the roof that could lead to leaks and other defects that can severely damage and reduce the quality of a home. It is important to properly patch up any holes in the roof if you want to pass the VA loan inspection.
Termite Inspection
Loan underwriters will also require a termite clearance. Termites can eliminate your home’s candidacy in the VA loan program. The seller of the home must provide section one termite clearance and, in many cases, section two as well. As a seller, it might be a contingency of the contract to go the extra mile by making the required guidelines and repairs set about in section two of the termite report.
Any violations of these guidelines can result in the disapproval of the home’s acceptance in the VA home loan program as well as a full refund of the buyer’s deposit in the event that a defect is found after an inspection.
What to do if the report requires repairs:
The seller is responsible for all costs and liabilities of completing the required repairs as reported on the VA home loan inspection.
If the seller does not make the required repairs, the buyer may cancel the contract.