VA Financing Basics – Part 2 of my series on What Buyer & Sellers need to know about Financing

VA FinancingThis week I’m going to focus on what VA appraisers look for and the key elements to be considered. Every VA loan requires properties to undergo a VA appraisal & meet Minimum Property Requirements (MPRs).

This is to ensure the structural integrity, safety & soundness of properties being purchased.

If you’re considering purchasing a home using VA financing or as a Seller you want your property to be considered as a viable option to VA buyers, you’ll want to consider these major MPRs.

  1. VA Financed properties must be Residential: If any portion of the home is designed for non-residential purposes such as a home based business (hair salon, dog grooming, auto shop), that part cannot exceed 25% of the total floor area.
  2. Operating systems must be safe and have a reasonable useful life expectancy. Be sure there are GCIF outlets in the kitchen and bath, all electrical and plumbing systems are good operating condition.
  3. All properties must have adequate living areas that provide suitable living, sleeping, cooking and sanitary areas.
  4. Heating systems must be adequate and safe. In our area many homes rely on woodburning stoves as their primary source of heat, for VA they must also have a conventional heating system that can maintain a temperature of 50 degrees Farenheit. Also unvented methods of heating, such as a space heater must be inspected by a heating professional, have an oxygen sensor and meet all building codes.
  5. A domestic water supply that provides safe drinking water & safe way of sewage disposal. You must have domestic HOT water as well.
  6. Roof conditions cannot be defective or have more than 3 layers of shingles, if this is discovered all old shingles must be removed prior to replacement. Roofing must be adequate and provide reasonable useful life expectancy.
  7. Adequate access to the crawlspace along with adequate venting is required. Remove all debri , be sure a properly installed vapor barrier is in place. Standing water or excessive dampness must be corrected. Leaky basements and faulty foundations are expensive to repair often leading to a deal breaker.
  8. Independent Utility services for each living unit (multifamily properties), unless there are separate shutoffs for each unit.
  9. Safe Access from the street either a permanent recorded easement or private driveway.
  10. Health & Safety are top concerns when dealing with VA financing. All properties must be free of any hazard that adversely affect the property or it’s occupants.
  11. Safety, Structural or Sanitation. Appraisers watch for  defective construction, decay/wood rot,  defective craftsmanship and repairs, leaks, and  excessive dampness.
  12. Water must have proper drainage and be graded to ensure water flows away from the home. All down spouts must have drain pans, poor drainage can lead to foundation problems.
  13. Properties must be free of fungal growths (Mold), dry rot and wood destroying insects. Pest inspections are commonly required in our area, if termites are discovered property must be treated and re-evaluated to gain VA approval.
  14. Properties built prior to 1978 may contain lead based paint which has been determined to be a health hazard. Any surfaces with chipped or peeling paint must be scraped and repainted, covered with drywall, or totally removed.
  15. Smoke detectors and Carbon Monoxide detectors must be properly installed per manufacturers recommendations.

The best way to purchase or sell a property that qualifies for VA financing is to be well versed in VA’s MPRs.

SimonsI am passionate about Real Estate and eager to answer all of your real estate questions! Text or Call me at 360-880-2356 or email me directly to ask about Buying, Selling or Investing in today's Real Estate Market - serving Lewis County & Thurston County, WA.

Janet Simons | Certified Residential Specialist | Real Estate Broker
Mountain Valley Real Estate