You and your client found the home of their dreams in the neighborhood they were hoping for. Now, you want to help them get to the closing table with confidence.
Keller Home Loans understands VA loans and is here to help you navigate the process, including the property requirements that can affect a transaction.
Here’s what every real estate agent should know about VA appraisals and how to prepare for potential hurdles along the way.
What Are VA Loan Property Requirements?
The Department of Veterans Affairs (VA) establishes Minimum Property Requirements (MPRs) to help ensure homes financed with VA-backed loans are safe, structurally sound and sanitary. These standards protect the Veteran buyer and help ensure the property is suitable collateral for the loan.
MPRs don’t mean a home has to be perfect or newly renovated. Cosmetic issues, normal wear and tear, and minor deferred maintenance generally shouldn’t trigger required repairs on their own. However, conditions that affect safety, structural integrity or sanitation may need to be addressed before the loan can move forward.
For agents, understanding the distinction can help set realistic expectations with buyers and sellers, particularly when a property has visible maintenance issues or is being sold as-is.
VA Appraisal vs. Home Inspection: What’s the Difference?
A VA appraisal and a home inspection serve different purposes, and one doesn’t replace the other.
A VA appraisal estimates the property’s market value and evaluates whether it meets applicable VA property requirements. The VA-assigned appraiser identifies readily apparent conditions that may need repair. If necessary, the appraisal may be made subject to completing those repairs before the loan can be guaranteed.
A home inspection gives the buyer a more detailed assessment of the home’s condition, including systems and components that may not be fully evaluated during an appraisal. Buyers should consider an independent home inspection even if the property passes its VA appraisal.
Agents can help buyers understand this distinction early in the transaction. A property meeting VA MPRs doesn’t necessarily mean every system or appliance is functioning properly, just as a favorable inspection doesn’t guarantee the property will meet VA appraisal requirements.
Common Property Issues That Can Affect a VA Loan
Some property concerns are more likely than others to require attention during the VA appraisal process. Examples include:
- Roof and water damage: Evidence of leaks, excessive dampness, decay or other damage may require repairs.
- Structural concerns: Significant settlement, defective construction or conditions that compromise structural soundness may need to be corrected.
- Safety hazards: Exposed electrical wiring, unsafe access or other readily apparent hazards can raise concerns.
- Heating and utilities: Applicable requirements for heating, electricity, water and sanitary facilities must be met.
- Lead-based paint: For homes built before 1978, defective lead-based paint is considered a safety hazard and must be remediated.
- Access and drainage: The property must have safe, adequate access, and conditions such as hazardous drainage or unstable soil may affect eligibility.
These are potential concerns, not automatic deal-breakers. The appraiser evaluates the specific property and applicable requirements, and the lender can help clarify what needs to happen if an issue is identified.
What Changed in VA Property Requirements in 2026?
The VA updated its MPR guidance in 2026 to streamline parts of the appraisal process and remove certain outdated requirements. The changes include removing the standalone radon gas topic, revising guidance related to lead-based paint, removing the requirement for non-vented heaters, and eliminating certain provisions related to detached improvements.
The updates apply to VA appraisals ordered on or after May 1, 2026. They don’t eliminate the broader requirement that a property be safe, structurally sound and sanitary.
Agents working on current VA transactions should use the latest guidance rather than relying on older checklists or assumptions about what every VA appraisal requires. For details, see the VA’s June 25, 2026, announcement on appraisal requirement updates.
How Agents Can Help Keep a VA Transaction Moving
A little preparation can help prevent avoidable surprises. Before an offer is finalized, consider these steps:
- Look for visible concerns. During showings, note obvious signs of water damage, peeling paint, exposed wiring or other conditions worth discussing with the buyer and lender.
- Set expectations with the seller. Explain that certain repairs may be required if the VA appraisal identifies conditions that don’t meet MPRs.
- Encourage a home inspection. Buyers benefit from understanding the property’s overall condition, regardless of the appraisal outcome.
- Communicate early with the lender. If you’re concerned about a property’s condition or unusual features, ask the lending team about potential issues before they become urgent.
- Address appraisal findings promptly. If repairs are required, coordinate with the seller and lender to understand the next steps, responsibilities and potential timeline implications.
If the appraised value comes in below the contract price, the buyer and seller may also need to discuss their options. The lender can explain the VA’s Tidewater process, when applicable, and whether a Reconsideration of Value may be appropriate.
A Smoother VA Transaction Starts With the Right Partner
VA property requirements don’t have to derail a transaction. When agents understand the appraisal process, prepare clients for potential concerns and communicate with the lending team early, they can help buyers and sellers navigate the process with greater confidence.
Have a VA transaction on the horizon? Connect with a Keller Home Loans mortgage professional to talk through property requirements, prepare for the appraisal process and help your clients move forward with confidence. A little preparation now can make a big difference later.
