Some of the most common questions about the VA appraisal process involve the things an appraiser might write up as needing corrections as a condition of VA loan approval. Some borrowers–and sellers–are confused by areas listed in the VA Minimum Property Requirements (MPRs). For example, why is peeling paint considered a required connection as opposed to a cosmetic issue?
The paint issue can be a serious sticking point in a VA appraisal for one important reason–VA MPRs are very strict on this subject. The Colorado VA Regional Loan Center rulebook for VA appraisers states,
“Lead Based Paint – This constitutes an immediate hazard that must be corrected. The appraiser must:
- Assume that any defective paint condition on either the interior or exterior of a property built prior to 1978 involves lead based paint.
- Clearly identify the location of such conditions, and
- Require correction.
The correction includes properly scraping, priming, and repainting the defective areas to match the existing color of the property. All paint chips must be removed from the property.”
For non-lead based paint, the VA rules are different. They say:
“Defective Non-Lead Based Paint Condition (Homes Built After 1977)
Defective condition must appear sufficient enough to cause deterioration if left untreated. If not, the condition is considered cosmetic and not listed as an MPR but considered in overall condition. Any interior paint problem is to be considered cosmetic only.”
As you can see, the age of the property plays a key role in whether the peeling paint is considered a hazard or not. VA MPRs don’t always apply the same standards to all properties because of factors like the age of the home, whether the property is new construction or existing construction, etc. Some issues apply regardless of the property’s age or condition–for example:
“Gas/Petroleum Pipelines and High Voltage Electric Transmission Lines: No part of any residential structure may be located within the easement.” Any home located within a gas pipeline or high voltage transmission easement will not be approved for a VA mortgage loan..
The VA also places certain restrictions on its appraisers. “You are not to require certifications from professionals regarding potential repair problems. Example: If you note damage to the roof, you are not to ask for a roofing certification. You need to specifically require the damaged part or the entire roof be repaired or replaced, based on severity of the damage. For serious functional or structural problems, you may call for a structural engineer inspection report, which addresses specific problem(s).”
VA appraisers must also report observed violations of local or state codes, ordinances, etc. These laws and codes vary from market to market, so it’s impossible for the VA to codify them all–instead it merely defers to the local/state/federal laws with jurisdiction. That’s why a VA appraisal in one state may have applicable standards that aren’t observed in another state where such rules don’t apply. An individual borrower’s experience may vary depending on where the home is located.
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