VA Appraisal: Requirements, Fees and Timeline

When buying a home through the U.S. Department of Veterans Affairs (VA), the property must go through a VA loan appraisal to determine its market value and ensure that it meets specific safety standards. Here’s what you should know about VA appraisals, including the requirements, fees and timeline.

Key takeaways

• VA appraisals are required if you’re buying a home with a VA loan.
• To pass the VA appraisal, a property must be safe, structurally sound and sanitary.
• VA appraisal fees are generally higher than standard appraisal fees.

How does a VA loan appraisal work?

A VA loan appraisal is a professional estimate of a property’s value and is conducted by an independent VA appraiser. It has two key purposes:

1. Verify that the home’s value aligns with the mortgage amount
2. Ensure that the property is safe for its future occupants

When the appraisal is complete, you’ll receive a “notice of value,” which lists any problems with the home that’ll need to be addressed before closing on the property. VA appraisals are required for all VA loans, including home purchase and cash-out refinance loans. VA appraisals are valid until the loan closes for purchase loans, and for six months after a VA refinance loan.

VA appraisal fees

VA appraisal fees tend to be higher than the fees for other loan types, because VA-approved appraisers must meet specific criteria and be familiar with the VA’s thorough appraisal process. VA appraisals can be as high as $1,000 or more, depending on the property and location. For comparison, standard home appraisals generally range from $300 to $500.

You can look up the VA appraisal fees for your location using the VA’s appraisal fee schedule.

VA appraisal requirements

VA appraisals serve two purposes:

1. Determining the home’s value

The main purpose of the VA appraisal is to find out whether the home’s value aligns with the amount you agreed to pay for it. To come up with the home’s value, VA appraisers will assess at least three comparable property sales in the area. These sales must be recent — typically within the last six months and no older than 12 months.

2. Ensuring the home meets minimum property requirements

VA loan appraisals are also meant to ensure that the property meets minimum property requirements (MPRs). These requirements help ensure that the property you’re buying is safe, structurally sound and sanitary. The VA’s MPRs include:

• Space requirements: The home must have sufficient space for living, sleeping, cooking, dining and sanitary facilities.
• Access: You must be able to safely access the property via foot or vehicle. Backyard access (if applicable) must be possible without passing through another property.
• Drainage: The ground around the home must provide proper drainage and not retain water.
• Lead-based paint: Any defective lead-based paint in homes built (or improved) prior to 1978 must be adequately treated.
• Roof covering: The roof must prevent the entrance of moisture and provide “reasonable future utility, durability and economy of maintenance.”
• Zoning: The property must follow all applicable zoning ordinances.
• Electricity: There must be electricity for lighting and any necessary equipment. You must repair or replace any exposed or frayed electrical wires.
• Heating: A heating system must be permanently installed and maintain a temperature of at least 50 degrees Fahrenheit in areas with plumbing.
• Water supply: The property is required to have a continuous supply of safe water for drinking, bathing, showering and sanitary uses. Hot water must also be available.
• Sanitary facilities: The appraiser must also check that there are sanitary facilities and safe methods of sewage disposal.
• Hazards: The home must be free of hazards, including those that adversely affect the safety of the occupants and the structural soundness of the dwelling.
• Mechanical systems: Any mechanical systems on the property must be safe to operate and safe from destructive elements.
• Attics: VA appraisers must view the interior of any readily accessible attic spaces, but aren’t required to climb into the attic.
• Basements: The appraiser will check for dampness and other problems that could affect occupant safety or structural soundness.
• Termites: Damage from wood destroying insects, fungus and dry rot must be repaired.

Read the full list of VA minimum property requirements.

How long does a VA appraisal take?

VA appraisals take about one to two weeks on average, though it can be shorter or longer, depending on your area.

Here are the average VA appraisal timelines in different states:

View more VA appraisal timelines by state.

VA appraisal vs. home inspection

A VA appraisal assesses a property’s condition to determine its market value and whether the home meets the VA’s minimum property requirements. But an appraisal is not the same as an inspection. During a home inspection, a professional thoroughly checks a home’s inner workings and physical structure. The VA requires appraisals for VA home loans, but it doesn’t require inspections. However, the VA recommends that buyers get a separate inspection in addition to the VA appraisal.

What are common VA appraisal issues?

The appraisal comes back low

If the VA appraisal is lower than expected, it can impact your financing. For example, if the home’s sale price is $300,000 but the appraisal comes back at $280,000, you’ll need to figure out a way to bridge that $20,000 gap. That might involve negotiating with the seller to lower the price or making a larger down payment.

The home needs repairs

The VA appraisal may also come back with specific repairs you’ll need to address before the sale can move forward. This could include fixing a faulty roof or addressing a termite problem. If the property needs repairs, you can either pay for them yourself or ask the seller to cover the costs.