VA Property Requirements Guide: MPRs and the VA Appraisal

The Department of Veterans Affairs (VA) guarantees your loan, so it wants the house to be safe to live in. 38 CFR 36.4351 says no purchase or construction loan can be guaranteed unless the property meets VA's "standards of planning, construction, and general acceptability." Those standards are written out in Chapter 12 of the VA Lenders Handbook, VA Pamphlet 26-7. Chapter 12 puts the goal in 3 words: the home must be "safe, structurally sound, and sanitary."

That is the whole test. MPRs are not a code inspection or a warranty. Chapter 12 tells the appraiser not to recommend repairs for "cosmetic items, items involving minor deferred maintenance or normal wear and tear, or items that are inconsequential in relation to the overall condition of the property." Worn carpet and an ugly kitchen are your problem, not VA's.

MPRs are also not a home inspection (VA's home-buying process page says an appraisal "isn't the same as an inspection"), and they are not Minimum Property Standards (MPS), which are the construction standards for new homes.

VA revised Chapter 12 effective May 1, 2026. According to VA News, the revision removed the radon requirement, changed the paint rules for homes built in 1978 or later, streamlined the rules for detached buildings and Specially Adapted Housing, and updated the guidance on non-vented heaters. The core list did not change. The VA home loan pillar guide covers the loan itself; the VA purchase loan guide covers the offer, entitlement and closing.

Chapter 12 is organized by topic. Here is what each one asks for, with the handbook's own wording where it matters.

Living space. Each living unit must have "sufficient space for living, sleeping, cooking and dining, and sanitary facilities." There is no square-footage number.

Access. The property needs "safe and adequate pedestrian or vehicular access from a public or private street with an all-weather surface." A private road must be "protected by a permanent easement" and maintained by a homeowners association or a joint maintenance agreement. A shared gravel driveway with no recorded easement is a common way rural homes fail this one.

Hazards. The property must be "free of hazards which may adversely affect the health and safety of the occupants, adversely affect the structural soundness of the dwelling, or impair the customary use and enjoyment of the property." Separate topics cover flood zones, sinkholes, high-voltage lines, pipelines, airports and storage tanks. Encroachments onto a neighbor's land must be reported.

Water supply. A private well must meet "the requirements of the health authority having jurisdiction" or, if there is none, EPA guidelines. The water test must be done by "a disinterested third party," and results are "valid for 90 days" unless the local authority says otherwise. A shared well must provide "a continuing supply of safe and potable water." Cisterns and hauled water are allowed only with your written acknowledgement. If public water is available and the local authority requires connection, you must connect. Chapter 12 sets no well-to-septic distance; your county health department does.

Sewage. A septic system "must adequately dispose of all domestic wastes in a sanitary manner." If public sewer is available and the local authority mandates connection, connection is required. Beyond that, VA defers to local rules.

Roof. The roof covering must "prevent entrance of moisture" and "provide reasonable future utility, durability, and economy of maintenance." Chapter 12 names no minimum years of remaining life. Leaks and missing shingles fail; an old but dry roof usually passes.

Crawl space and basement. The appraiser must view, but need not enter, the crawl space. It must "have adequate access, be clear of debris, and be properly vented," with joists high enough for maintenance. "Any excessive dampness or ponding of water must be corrected."

Attic. The appraiser views "readily accessible attic spaces" but need not climb in or move insulation.

Heating. Heating "must be permanently installed and maintain a temperature of at least 50 degrees Fahrenheit in areas with plumbing." In a mild climate heating may not be required. Space heaters alone are the usual failure. VA updated its non-vented heater guidance on May 1, 2026, so ask your lender how a ventless unit is treated now.

Electrical and utilities. "Each living unit must have electricity for lighting and for necessary equipment." "Any visible frayed or exposed electrical wires must be repaired." Utilities do not have to be on for the visit. Units in a 2- to 4-unit building may share services only if each unit has its own shut-off.

Mechanical systems. Furnace, water heater and plumbing "must be safe to operate, and protected from destructive elements." The appraiser does not test them but flags repairs "that are readily apparent."

Lead-based paint. For any home built before 1978, "the presence of lead-based paint must be presumed." Defective paint (cracking, peeling, chipping or loose) must be fixed: clean off the loose paint and apply 2 coats of nonleaded paint, or remove or cover the surface. The VA-assigned appraiser certifies the repair. For homes built in 1978 or later, VA revised the standard on May 1, 2026; the pre-1978 rule did not change.

Wood-destroying insects. An inspection report (usually the NPMA-33) is required where the Termite Infestation Probability Map rates risk "very heavy" or "moderate to heavy," and any time "infestation or damage is apparent." The state section below lists where it is always required.

Detached buildings and pools. Under the 2019 text a detached shed or garage counted in the value only if it met MPRs; VA streamlined that guidance on May 1, 2026. A pool need not work, but the appraiser reports "readily observable defects."

Stairs and handrails. Chapter 12 has no stair or handrail topic. A missing rail on a steep stair can still be written up under the hazards rule. Treat it as a likely repair, not a certain one.

Condos. VA's condo guide for lenders is blunt: "In order to be eligible for VA loan guaranty, a condominium or lot must be approved by VA." Your lender checks VA's WebLGY system before ordering the appraisal. If the project is not approved, the lender can submit its documents for VA review, which takes time and can be refused. Ask before you write the offer.

2- to 4-unit homes. Every unit must meet MPRs, not just yours. You must live in 1 unit.

Manufactured homes. The home "must be placed on a permanent foundation" that "meets state and local requirements" and "must be built to HUD Manufactured Home Construction and Safety Standards." A unit that is not permanently affixed carries a 1% funding fee, and fewer lenders will do the loan.

New construction. Proposed and under-construction homes are held to Minimum Property Standards rather than the existing-home MPRs, and the appraiser may add $50 to the fee for a proposed-construction assignment.

Mixed use and farms. A home with a business use is eligible if it is "primarily for residential use," has "no more than one business unit," and conforms to zoning. Chapter 12 sets no percentage of floor area.

Accessory dwelling units. Chapter 12 has no ADU topic. A second unit must be legal under local zoning and is looked at like any other improvement. Your lender's underwriter, not the appraiser, decides whether its rent counts as income.

The VA appraisal answers 2 questions for VA: what is the home worth, and does it meet MPRs? The appraiser looks but does not test. A home inspector works for you and runs the furnace, fills the tubs, opens the panel and crawls the crawl space. VA's Buyer's Guide puts it plainly: "An appraisal is not a home inspection. You should consider hiring a qualified home inspector to thoroughly inspect the home for defects and potential maintenance issues."

Source: https://www.benefits.va.gov/homeloans/documents/docs/VA_Buyers_Guide.pdf and https://www.va.gov/housing-assistance/home-loans/home-buying-process/, effective September 2026.

A house can pass MPRs and still have a furnace on its last legs. The first-time homebuyer guide covers how to pick an inspector.

1. Your lender orders the appraisal after you and the seller sign the contract. VA assigns a fee appraiser from its panel; nobody on your side picks the person.
2. You pay the fee up front. The Buyer's Guide says it is a cost "you must pay at this time," and it is an allowed charge under 38 CFR 36.4313. The seller can reimburse it at closing if you negotiate that.
3. The appraiser visits and writes the report within the deadline VA sets for that county.
4. Tidewater, if value looks short. See the low-appraisal section.
5. VA issues the Notice of Value (NOV). It "documents the estimated value of the home, a list of comparable sales in the area, floor layout, photographs, and a list of items requiring repair."
6. Repairs are done and re-checked by the appraiser or a VA compliance inspector before closing.

Fees and timelines are set by county. VA's appraisal fee and timeliness table, effective May 1, 2026, has a statewide row and county exceptions for every state. Statewide single-family rows for a few large states:

Source: https://www.benefits.va.gov/HOMELOANS/documents/docs/va-appraisal-fees-and-timeliness-table.pdf, effective May 1, 2026. Many counties in each state have a different fee or deadline; check your county's row.

Across the whole table, single-family fees run from $650 to $1,500 (Valdez-Cordova, Alaska) and deadlines from 6 to 21 business days. Condos, manufactured homes and 2- to 4-unit buildings have their own columns.

None of these is a dealbreaker by itself. Each is a repair the NOV will list, and each has a normal fix.

1. Defective paint on a pre-1978 home. Scrape and repaint with 2 coats of nonleaded paint, or remove or cover the surface; the appraiser certifies completion.
2. A roof that lets in water. Repair the leak or replace the covering. A worn but dry roof is not an MPR failure.
3. Exposed or frayed wiring. An electrician closes it up. Open junction boxes and missing panel covers are the usual finds.
4. No permanent heat. Install a permanent system that holds 50°F where there is plumbing. The most expensive common failure on older rural homes.
5. Wet or blocked crawl space or basement. Drain the water, fix the grading, clear debris, add vents or an access hatch.
6. Well water that fails or is untested. A passing test from a disinterested third party within 90 days of closing; a treatment system can get it there.
7. Pest damage or a missing wood-destroying insect report. Get the report; treat and repair any damage.
8. Site hazards. A leaning retaining wall can be repaired; a home inside a pipeline easement usually cannot be.

The pattern: things that are broken, leaking, exposed or unsafe fail. Things that are old or ugly do not.

Before the report is final: Tidewater. VA's Tidewater process dates to 2003, and VA Circular 26-17-18 describes it. When the appraiser expects the value to come in below the sales price, they must notify the point of contact your lender named on the order, who then has "2 working days to provide additional information to the fee appraiser," meaning closed comparable sales the appraiser may have missed. Have those ready before the call, not after.

After the NOV: Reconsideration of Value (ROV). VA's home-buying page says you "can ask your real estate agent to provide the lender with valid sales data showing the property is worth more than its appraised price." VA staff then review the report against the new data. An ROV is a data argument; a letter saying the house is nicer than the comps will not move it.

Then you choose.

• Ask the seller to lower the price to the appraised value, or split the gap.
• Pay the difference in cash at closing. The gap cannot go into the loan, because a no-down-payment loan cannot exceed the appraised value.
• Walk away. The VA escape clause, required in every VA contract, says you "shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase" if the price "exceeds the reasonable value of the property established by the Department of Veterans Affairs."

Watch out: The escape clause protects you only if it is in the signed contract. Agents usually attach it as a VA amendatory clause addendum. Check for it before you sign, not when the NOV arrives.

VA does not say who pays. The NOV lists what must be fixed; the contract decides who fixes it. Three ways it usually goes:

• The seller repairs before closing. Most common. The appraiser or a compliance inspector re-checks the work.
• You pay. VA Circular 26-22-11 (June 15, 2022, still in effect) says veterans "may also pay for any repairs required to ensure compliance with MPRs," and may be charged the pest inspection fee where the NOV requires one. Paying for repairs on a house you do not yet own is a risk; get the seller's written permission and a credit at closing.
• Escrow holdback. VA expects MPR repairs to be finished before closing. The exception is exterior work that weather prevents, such as grading or painting in winter. VA Form 26-1849 (Escrow Agreement for Postponed Exterior Onsite Improvements) holds at least 150% of the estimated cost in escrow, sets a completion date, and lets the lender hire a third party if the seller does not finish.

Fixer-uppers. You can buy one if the MPR items are cleared by closing. VA's purchase-loan page also lets you "buy a home and improve it" with the same loan, but not every VA lender offers that option, so ask before you go under contract. Cosmetic work can wait until you own the place; the property protection plans guide and the home insurance benefits guide cover what to protect once you do.

Questions about an NOV go to VA's home loan line at 877-827-3702, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

Chapter 12 points to VA's local requirements page, which lists what each state's Regional Loan Center adds. The big one is the wood-destroying insect report. As of this writing it is required on every existing home in Alabama, Arizona, Arkansas, California, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Puerto Rico, Rhode Island, South Carolina, Tennessee, Texas, the U.S. Virgin Islands, Virginia, West Virginia, Guam, American Samoa and the Northern Mariana Islands. It is required by county in Colorado, Iowa, Nebraska, Nevada, New York, Pennsylvania, Utah and Wisconsin, and elsewhere only when damage is visible. Well and septic rules come from your county health department, not VA. Your state may also give you a property-tax exemption or a state home-loan program that stacks with the VA loan; select your state to see what applies.