- As of May 1, 2026, the VA removed five Minimum Property Requirements from the Lender’s Handbook (VA Pamphlet 26-7, Change 46) — including detached structures and exterior paint on post-1978 homes
- The three core standards have not changed: the home must be safe, sanitary, and structurally sound
- A VA appraisal establishes market value and checks MPR compliance — it is not the same as a home inspection
- Cosmetic issues do not fail an appraisal; structural, mechanical, safety, and health hazard issues do
- If the home comes back “subject to” repairs, the seller is not required to make them — but the loan cannot close until they’re done
- Re-inspection fees are $150 flat; multiple MPR issues can each require a separate re-inspection
The VA appraisal is one of the most misunderstood steps in the VA home loan process. Sellers worry it will kill deals. Buyers worry their dream home will fail over minor issues. Real estate agents sometimes warn clients away from VA buyers because of appraisal complications.
Most of those concerns are overblown — but understanding what the appraisal actually does, what’s changed in 2026, and what to watch for before going under contract will make you a much more effective buyer.
- What the VA Appraisal Does
- What Changed on May 1, 2026: Change 46
- What the Minimum Property Requirements Cover
- What Fails a VA Appraisal
- What Doesn’t Fail a VA Appraisal
- What Happens When a Home Fails MPRs
- VA Appraisal vs. Home Inspection
- The VA Appraisal Process Step by Step
- Frequently Asked Questions
What the VA Appraisal Does
The VA appraisal performs two functions simultaneously: it establishes the fair market value of the property and confirms the property meets the VA’s Minimum Property Requirements (MPRs). Both must be satisfied for the loan to close.
Value determination: The appraiser reviews recent comparable sales in the area to determine whether the purchase price is reasonable. If the appraised value comes in below the contract price, the VA will only guarantee the loan up to the appraised value. The buyer can pay the difference in cash, negotiate with the seller, or exit using the VA escape clause.
MPR compliance: The appraiser evaluates the property against the VA’s safety, sanitation, and structural standards. If any issues are found, the appraisal comes back “subject to” a repair — meaning the issue must be resolved before the loan can close.
A VA appraisal is not a home inspection. The appraiser is not a licensed home inspector and does not provide the comprehensive evaluation of all home systems that a home inspection provides. VA buyers should always order an independent home inspection in addition to the required appraisal.
What Changed on May 1, 2026: Change 46
On February 27, 2026, the VA issued Change 46 to VA Pamphlet 26-7, removing five Minimum Property Requirements determined to be “superfluous” to the core mission of protecting veterans from unsafe or unsound housing. These changes apply to all VA appraisals ordered on or after May 1, 2026.
What was removed:
- Detached structures: Detached sheds, garages, workshops, and other non-residential outbuildings are no longer required to meet MPRs. An appraiser still notes their presence, but peeling paint, a sagging door, or general wear in a detached structure will no longer trigger a repair condition or value exclusion. If a detached structure poses a genuine health or safety hazard to occupants, the appraiser may still flag it under VA’s general hazard provisions.
- Exterior paint on post-1978 homes: Paint defects on the exterior of homes built after 1978 are no longer required to be repaired. (Lead paint remediation requirements on pre-1978 homes are not affected.)
- Radon certification for new construction: The radon-resistant construction certification requirement for new construction has been removed.
- Oxygen depletion sensor certification for non-vented heaters: Certification requirements for non-vented gas fireplaces and heaters have been removed.
- Ventless fireplace restrictions: Prior restrictions on ventless fireplaces are no longer an automatic MPR issue.
Important timing note: These changes apply based on when the appraisal is ordered, not when it’s inspected and not when you close. An appraisal ordered April 30, 2026 is subject to old rules even if the physical inspection happens on May 5. If you’re currently under contract on a property with a detached structure issue or post-1978 exterior paint concerns, talk to your lender about timing the appraisal order.
What the Minimum Property Requirements Cover
The core framework of VA MPRs evaluates three tests: is the home safe, sanitary, and structurally sound? These tests haven’t changed with Change 46.
Structural integrity: The foundation must be stable without significant cracks, settling, or other issues threatening structural integrity. The roof must have sufficient remaining life to protect the property — most lenders interpret this as at least three years of useful life. The appraiser notes missing or damaged shingles, evidence of leaks, sagging sections, or roofs appearing at end of lifespan.
Mechanical systems: The electrical system must be safe and adequate. Heating must be sufficient to maintain healthful living conditions (generally able to keep the home at 50°F in areas where plumbing can freeze). Air conditioning is not required but if present must function properly. Plumbing must have adequate water pressure and proper drainage.
Water and sewage: A continuous supply of safe, potable water is required. For well water, a test is typically required. Septic systems must be functional and appropriate for the home’s size. Municipal connections generally satisfy these requirements without additional testing.
Health and safety hazards: Asbestos, lead-based paint on pre-1978 homes, pest damage, and nuclear contamination are all red flags. Properties in designated flood zones, geological hazard zones, or near high-voltage power lines face additional scrutiny.
Livability: The home must have adequate space for cooking, eating, and sleeping. Properties must be residential only — commercial properties are ineligible.
What Fails a VA Appraisal
The most common MPR issues that trigger “subject to” repair conditions:
- Roof damage — missing shingles, active leaks, or a roof at end of useful life
- Lead-based paint on pre-1978 homes (flaking or peeling paint is assumed to be lead paint)
- Structural issues — foundation cracks, settling, soft floors indicating subfloor damage
- Non-functional heating system
- Unsafe electrical — exposed wiring, fuse box issues, insufficient capacity
- Water or septic problems — non-potable well water, failing septic system
- Evidence of wood-destroying insects or fungus/dry rot compromising structural integrity
- Crawlspace moisture or standing water
- Missing handrails on stairs or elevated decks
- Utilities turned off at time of appraisal (utilities must be on for the appraiser to confirm function)
What Doesn’t Fail a VA Appraisal
MPRs target safety, soundness, and habitability — not cosmetics or modern amenities. The following do not fail a VA appraisal:
- Outdated décor, worn carpet, or dated fixtures
- Minor nail holes or scuffs on walls
- Old but functional appliances (appliances are not tested or required)
- Exterior paint defects on post-1978 homes (as of May 1, 2026)
- Defects in detached sheds or outbuildings (as of May 1, 2026)
- Single-car garage when a two-car garage was preferred
- Older but functional HVAC systems
- Cosmetic cracks in drywall (not structural)
The VA appraiser is not required to climb on the roof or into the attic — they observe from the ground and through accessible openings.
What Happens When a Home Fails MPRs
When an appraiser identifies an MPR issue, the appraisal is marked “subject to” that repair being completed. The repair must be done and re-inspected by the VA appraiser before the loan can close. Re-inspection fees are $150 flat per visit. If multiple MPR issues require separate re-inspections, each adds time and cost to the closing process.
Your options when a home fails MPRs:
- Ask the seller to make the repairs. Sellers are not required to make repairs, but if they want the deal to proceed, most will. This is often the smoothest path.
- Pay for the repairs yourself. The VA allows buyers to pay for repairs in most cases, but not all lenders permit this. Confirm with your lender before agreeing to pay for repairs.
- Request an escrow holdback. Some lenders will allow the loan to close with funds held in escrow to cover the cost of repairs after closing. Not all lenders offer this, and not all MPR issues qualify.
- Use the VA escape clause. Every VA purchase contract includes an escape clause that allows the buyer to exit without penalty if the appraised value doesn’t support the purchase price or if the property doesn’t meet MPRs. This is a buyer protection built into the VA loan program.
If a seller refuses to make repairs and the cost is prohibitive, the VA escape clause allows the buyer to terminate without penalty. This is worth using rather than proceeding with a property that has unresolved safety or structural issues.
VA Appraisal vs. Home Inspection
The VA appraisal checks whether the property meets minimum standards and establishes value. A home inspection provides a comprehensive evaluation of the property’s actual condition — foundation, roof, HVAC, plumbing, electrical, appliances, and more — against local building codes.
The VA does not require a home inspection, but it is strongly recommended. An appraiser who finds the property meets MPRs is not certifying that the home is in excellent condition — only that it clears the minimum bar. A home inspection can uncover issues the appraiser isn’t looking for: failing HVAC systems with remaining life, plumbing under sinks, signs of prior water intrusion, and dozens of other conditions that matter to buyers even if they don’t trigger MPR flags.
Home inspection costs vary by location and property size, typically ranging from $300 to $500.
The VA Appraisal Process Step by Step
- Purchase agreement signed. Once buyer and seller sign a contract, the lender orders the appraisal through the VA’s automated system.
- VA assigns an appraiser. The VA selects an independent, VA-approved appraiser from its roster. Buyers and sellers do not choose the appraiser.
- Physical inspection. The appraiser visits the property, inspects the interior and exterior, and notes any potential MPR issues.
- Market analysis. The appraiser reviews comparable sales to determine fair market value.
- Notice of Value (NOV) issued. The appraiser delivers the completed appraisal. If MPR repairs are required, they are listed in the NOV. Once repairs are complete, the appraiser re-inspects.
- Lender receives the NOV. The lender reviews the value and MPR compliance before proceeding to underwriting and closing.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, VA, or any government agency. For official information on VA appraisals and minimum property requirements, visit VA.gov or speak with your VA-approved lender.
Frequently Asked Questions
No. The VA assigns appraisers from its approved roster through an automated system. Neither the buyer, seller, nor lender selects the appraiser. This independence is a feature of the VA loan program designed to protect all parties from valuation pressure.
Processing times vary by location. In most markets, a VA appraisal takes seven to ten business days from the time it’s ordered. In rural areas or markets with fewer VA-approved appraisers, it can take longer. Your lender should be able to provide a realistic timeline for your area.
The VA will only guarantee the loan up to the appraised value. You have three options: pay the difference between the appraised value and purchase price in cash, negotiate with the seller to reduce the price to the appraised value, or use the VA escape clause to exit the contract without penalty.
Not typically. The VA Interest Rate Reduction Refinance Loan (IRRRL) is designed to be streamlined and generally does not require a new appraisal. Standard VA cash-out refinances do require appraisals.
The buyer typically pays for the VA appraisal, though in some cases this cost can be negotiated into seller concessions. Appraisal fees vary by state and property type — the VA publishes maximum allowable appraisal fees by state. Re-inspection fees ($150 flat) for MPR repairs are typically paid by the buyer or negotiated with the seller as part of the repair arrangement.
