Lender Appraisal Processing Program

The Lender Appraisal Program (LAPP) is a program available to lenders that have met specific requirements. Using a LAPP lender can be very convenient. A VA assigned appraiser can actually close the applicant's loan, allowing for the loan process to be expedited.

The program requires Staff Appraisal Reviewers (SARS) to review several different property types before approving the appraisal.

Staff Appraisal Reviewer

The SAR is the person that will receive an appraisal for review. When reviewing an appraisal, the SAR will make different assessments:

• Is the appraisal complete?
• Does the appraisal conform to industry practices and/or other VA requirements?
• Is the property value reasonable?

After assessing if the appraisal meets the appropriate guidelines, the SAR will send written notice to the buyer on the loan’s conditions and requirements.

SAR Qualifications

The SAR must meet specific requirements. The SAR must:

• Be a full-time, salaried employee of the lender
• Have three or more years of experience in appraisal reviewing
• Have complete specific training for this position.

The interested candidate will need to apply by completing a LAPP application, where it will be sent to the local VA Regional Office.

Property Types

Four property types are considered and reviewed by a SAR:

1. Proposed Construction

The proposed construction is the construction that has not yet commenced. Some standards must be met for this to be considered proposed construction:

• Three Compliance Inspections - The inspections are required, but there are two exceptions. The first exception is if a ten-year insurance backed plan already covers the property. The other exception is if the property is located in a community approved by the HUD.
• Plans and Specifications - Two sets of plans and specifications must be provided by the lender. The first set is for the appraiser. The second set is for the compliance inspector.

2. Under Construction

After the first inspection phase reaches completion, the property is then “under construction.” This classification also applies to those properties that had previously met the exception standards under the previously mentioned three compliance inspection section.

3. New Construction

Once construction is complete or mostly complete (except for customer preferences) and is within a 12-month period, the property is classified as new construction.

4. Existing Construction

After the property is in the completion stage for over a year or has been occupied by the owner, it is classified as existing construction.