VA Home Appraisal Checklist: Minimum Property Requirements Explained

The VA appraisal is different from a conventional appraisal in one significant way: it combines a market value estimate with a property condition review called a Minimum Property Requirements (MPR) assessment. A conventional appraisal focuses almost entirely on establishing market value. A VA appraisal must also confirm the property meets VA standards for safety, soundness, and sanitation before the loan can close.

This creates situations where a home passes a conventional appraisal but fails a VA appraisal — not because of value, but because of a condition issue the VA requires to be resolved. For buyers using VA loans and sellers considering VA offers, understanding exactly what VA appraisers assess is essential.

Who Conducts the VA Appraisal

VA appraisals must be conducted by a VA-approved appraiser selected from the VA's approved appraiser roster. Your lender orders the appraisal through the VA's automated system — you can't choose your appraiser, and neither can your lender beyond selecting from the VA roster.

The appraisal is ordered after your purchase contract is signed and the loan application is submitted. Processing times vary by region but typically run 7–14 business days. In competitive markets or areas with high VA loan volume, it can take longer.

The appraisal fee for a VA loan varies by region and property type, typically running $400–$600. VA regulations cap the fee charged to buyers, and the fee schedule varies by state.

VA Minimum Property Requirements (MPRs): The Full Checklist

VA Minimum Property Requirements are published in VA Pamphlet 26-7. They cover three categories: safety, structural soundness, and sanitation.

Safety Requirements

Heating: The home must have adequate heating to maintain at least 50°F in all rooms. Space heaters alone are not sufficient if they're the primary heat source. Properties that rely solely on wood stoves, pellet stoves, or solar panels as the primary heat source may require a VA waiver. Central heat, heat pumps, and baseboard electric systems all typically meet the standard.

Electrical system: All electrical systems must be safe, functional, and adequate for the home's size. Knob-and-tube wiring (found in very old homes) and aluminum wiring in branch circuits (common in homes built between 1965 and 1973) are significant concerns that often require an electrician's letter of safety or remediation.

Roof condition: The roof must be functional, with no active leaks and a remaining useful life of at least 3 years. Missing shingles, visible deterioration, or sagging roof decking triggers an MPR flag.

Lead-based paint: In homes built before 1978, all interior surfaces with deteriorated paint (chipping, peeling, flaking) must be addressed. This applies to walls, ceilings, window sills, and door frames. Sellers must disclose known lead paint issues; appraisers will flag visible deteriorating paint on any surface.

Exposure to hazards: Properties near high-voltage power lines, heavy commercial traffic, hazardous waste sites, or airport flight paths can have MPR complications. The VA makes decisions based on proximity and severity.

Crawl space and basement: Crawl spaces must have adequate drainage and ventilation. Standing water in a crawl space, evidence of moisture intrusion, or inadequate vapor barrier will flag the appraisal.

Pest/termite damage: In areas where termites are common (generally south of a VA-defined geographic line covering most of the South, Southwest, and Pacific coast), a pest inspection (called a termite inspection or VA Form 26-1852) is typically required. Evidence of active infestation or structural damage from termites requires treatment and documentation before loan closing.

Structural Soundness Requirements

Foundation: No evidence of settling or shifting that affects structural integrity. Horizontal cracks in basement walls, significant settlement cracks, or visible structural issues require engineering review.

Structural integrity: No sagging floors, deteriorated framing, or evidence of structural failure. The VA doesn't require every cosmetic defect to be repaired, but structural components must be sound.

Roof decking: Visible from the attic, the roof decking must be intact and structurally sound.

Mechanical systems: The heating, cooling, plumbing, and electrical systems must be working. An HVAC system that runs but is at end of life may or may not trigger an MPR flag — the appraiser's judgment applies here. Non-functional systems (broken air conditioning in summer, failed water heater) typically do trigger flags.

Drainage: The property must have proper grading so water drains away from the foundation. Negative grading — where the ground slopes toward the house — is a common MPR issue that's relatively inexpensive to address.

Sanitation Requirements

Plumbing: Hot and cold running water must be available to all fixtures. All drains must function. The VA will flag non-functional plumbing.

Sewage disposal: The property must have an adequate sewage disposal system, either public sewer or a properly functioning septic system. Septic systems in rural areas may require an inspection and functional assessment.

Water supply: The property must have adequate, potable water supply. Well water properties may require a water test showing the water meets safety standards.

No evidence of pest infestation: Active rodent infestation or evidence of pest damage to structural components triggers an MPR issue.

What the VA Appraiser Does Not Require

Understanding the scope of MPRs prevents both sellers and buyers from over-preparing for issues the VA doesn't care about:

• Cosmetic issues (dated décor, worn carpet, older appliances that work) do not trigger MPR flags
• Code compliance is not the standard — the VA checks safety and function, not whether every aspect of the home meets current local building code
• Minor deferred maintenance (a dripping faucet, worn caulk around a tub) typically does not create an MPR issue unless it threatens habitability
• Age of systems alone is not an MPR issue — an old but functional HVAC system generally passes
• Outdated kitchens and bathrooms have no bearing on MPR compliance

How to Prepare as a Seller Accepting a VA Offer

Sellers who accept VA offers benefit from understanding MPRs before the appraisal is ordered. A pre-inspection of the following items — which are the most common VA appraisal failure points — saves time and prevents deals from falling apart at the appraisal stage:

1. Roof condition. If the roof is near end of life, consider addressing it proactively or pricing accordingly. VA appraisers typically note roofs with fewer than 3 years of expected life.

2. Deteriorated paint on exterior or interior surfaces. In pre-1978 homes, address all chipping and peeling paint before the appraisal.

3. Crawl space moisture. If the property has a crawl space, check for standing water or evidence of moisture. Add vapor barrier if needed.

4. HVAC and water heater function. Ensure both are operational. A non-functional heater in winter fails immediately.

5. Electrical hazards. Check for double-tapped breakers, ungrounded outlets in bathrooms and kitchens, and open junction boxes.

6. Drainage grading. Walk the perimeter of the foundation on a rainy day if possible and observe whether water moves away from or toward the house.

7. Pest evidence. In termite zones, visible mud tubes on foundation walls, damaged wood near ground level, or evidence of prior untreated infestation should be disclosed and addressed.

What Happens if the VA Appraisal Flags an MPR Issue

If the VA appraiser identifies MPR issues, the appraisal is returned with a list of conditions that must be satisfied before the loan can close. These are called "repairs required" on the appraisal report.

Options at this point:

• Seller makes the repairs — most common outcome. The appraiser returns for a re-inspection (at additional cost) or a repair certification from a licensed contractor may be accepted.
• Buyer pays for repairs — the VA allows this in some cases, though buyers are not required to accept this responsibility.
• Escrow holdback — in some cases, a portion of funds can be held in escrow pending completion of minor repairs after closing.
• Negotiate seller credit and buyer completes repairs — acceptable if the parties agree.
• VA Escape Clause — if repairs are required and the parties cannot agree on who pays, VA buyers can use the VA escape clause (required in all VA purchase contracts) to walk away from the transaction without penalty.

The VA Appraisal vs. the Home Inspection

The VA appraisal is not a substitute for a home inspection. VA appraisers assess value and MPR compliance — they are not performing a full structural and mechanical inspection of the property. An appraiser walks through the home and observes obvious conditions; they don't run water for 20 minutes watching for drain speed, test every outlet with a tester, or walk the full roof surface.

If you're buying with a VA loan, hire a licensed home inspector separately. The home inspection is your primary source of information about the condition of the property. The VA appraisal tells you whether the VA will lend on it.

Moving In After a VA Purchase

VA loans are exclusively for owner-occupied properties — you must certify your intent to occupy the property as your primary residence. Once the loan closes and the VA appraisal is satisfied, you can move in.

The moving-in process after a VA purchase is the same as any home purchase: change the locks, locate shutoffs, test detectors, update your address with the USPS and relevant government agencies. Military personnel specifically should update their address with the VA (for benefits mail), DFAS (Defense Finance and Accounting Service), and their base housing office if applicable.

For a complete moving-in checklist — from the day you get the keys through your first month in the home — our Moving Checklist covers every step: safety setup, utilities, address changes, room-by-room unpacking, and more. It's designed for first-time homebuyers in particular, but the checklists are useful for any home purchase.