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Mortgage Research Center — NMLS #17094
Please use the links below to find out more about appraisals in relation to VA Loans.
Your VA mortgage specialist will order the VA appraisal. He/she will submit the appraisal request through the online portal of the Department of Veterans Affairs. The VA then randomly assigns an appraiser to conduct the appraisal.
Contact a VA Loan Specialist for more information about appraisals or to get started on pre-qualification.
The fee for a VA appraisal is state mandated and set in each state. It normally ranges between $300 and $500 depending on the state. This fee is generally paid by you prior to closing on the home and should be an expense you include in your home buying budget.
It is recommended that the appraisal be soon after you are under contract as possible to avoid any potential delays from the appraiser. Generally you will order a home inspection first to identify any issues that would keep you from wanting to move forward. A home inspection is not required by the VA but we strongly recommend ordering one anyways. Once you are satisfied with the home inspection, the appraisal is ordered.
With a VA Loan, the VA randomly assigns an appraiser to your new property to prevent any conflict of interest on the loan. In order to prevent this conflict, it is not possible to request an appraiser.
Not necessarily. VA appraisers are trained and approved by the VA to represent the best interest of the home buyer and Department of Veterans Affairs. They will give you a true value of the home based on comparable listings in the area. In order to protect you as the buyer, the VA does require that the appraiser specifically look for certain conditions referred to as Minimum Property Requirements (MPRs). These requirements are set by the VA to ensure the home is safe, sound and secure. Any MPRs listed on the appraisal will have to be resolved prior to closing.
The VA requires that a home be considered move-in ready and free of any safety hazards. These minimum property requirements ensure the home is safe and secure. An example of a few safety issues include, stairs with no railing or peeling lead based paint. These MPRs must be fixed by the seller, at no cost to the buyer, prior to closing.
Yes, for the most part all repairs noted on an appraisal have to be completed before closing on the new loan. Sometimes if circumstances arise beyond your control the lender will allow you to escrow for a repair and take care of it when weather or other factors permit.
If this happens, there are a few things you can do. The VA will allow you to ask for what is called a reconsideration of value. With a reconsideration of value, you can request the value of the home be adjusted based on other comparable homes not used in the initial appraisal. Another option is for you to renegotiate the contract to the lower price or, if your situation permits, you can also pay the difference between the appraised value and the contract price. The VA only permits the mortgage amount to be the lower of two values: the sales price and the appraised value.
If you have questions on the VA Loan Appraisal, or if you want to determine if a VA Home Loan is the best financial decision for you, contact VA Mortgage Center online or call 800-405-6682.