The VA has recently made two major announcements in regards to Appraisals. Here are the two changes:
1. Interior Photos are now needed- This is not a major change since interior photos are needed on appraisals for FHA and Conventional. The appraiser know must include photos of at least the: Kitchen, all bedrooms, main living area, examples of physical deterioration, examples of upgrades, restoration and improvements.
2. Value Assessment- This one is a little bit more tricky. In the past, the Lender’s Staff Appraisal Review(SAR) could give a value of 5% more or less than the VA appraisal value. So if the lender disagree with a value they could give up to 5% more or less of what the VA appraiser assessed the value at. This was a nice benefit in regards to appraisal values that just came in under the sales price. This benefit has gone away, they can no longer alter the NOV(notice of value). So what the VA appraiser appraises the home for, is what the final value must be.
In our business, there are always changes happening. These are two that can affect VA appraisals. Please call or email me with any questions.