Purpose of a VA Loan Appraisal

VA Loan Appraisal

Purpose of a VA Loan Appraisal

One of the first steps after house-hunting is applying for a VA loan appraisal. A VA appraisal is an evaluation of the property’s actual worth and conditions. It is a mandatory step required for every VA loan.

However, you must note that VA appraisal is not a home inspection. Unlike an appraisal, a home inspection is not mandatory. But, it is advisable to get your home inspected before applying for an appraisal so that you can get an in-depth review of the property’s physical condition.


A VA appraisal has a two-fold purpose.

One is to evaluate the property’s actual worth. The second is to make sure the home you chose meets the department’s Minimum Property Requirements (MRPs).

Assessing Property’s Actual Worth

The first and the main aim of a VA loan appraisal is to assess the property’s fair value. The lender will finance the loan amount based on this assessment.

To determine the fair value, the VA appraiser will compare your chosen property with at least three properties with the same characteristics.

Minimum Property Requirements (MPRs)

There are certain MPRs the house must pass to stand eligible for the loan. A VA loan appraisal makes sure that the house is safe for living and has no health hazards. The appraiser will consider the interior and exterior to assess the overall condition. They might also recommend some repairs that you must carry out before the loan closing.


The VA does not approve any home. The property must pass the following MPRs during the VA home appraisal to stand eligible for the loan-

  • The property must only be residential. The VA does not approve loans for investment or vacation properties.
  • There must be enough space for living, sleeping, eating and cooking.
  • All mechanical systems like electrical and plumbing systems must be safe and usable.
  • The property must have appropriate heating systems and sensors.
  • There must be a safe and adequate supply of water and a hygienic sewage disposal system.
  • Roofing must be in good shape.
  • The home must have a private driveway.
  • The home should be free of excessive decay or any hazardous materials like nuclear waste.
  • The property must be free of termites and lead-based paint.

The appraisal report will be uploaded on the VA’s web portal. While it usually takes about ten days, it might take longer in some cases.

Borrowers are also responsible for paying VA loan appraisal fees. The fee can vary depending on where you live.


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