The appraiser is going to determine whether the subject property meets the VA minimum property requirements established to ensure the home is safe, sanitary and structurally sound.
You can find a full list of MPRs in Chapter 12 of the VA Lenders Handbook, but here are 10 to keep in mind for your next VA loan transaction:
Entity
Ensures the property is a single structure that is ready to be placed on the market.
Nonresidential Use
VA Loans are intended to help the buyer purchase a primary residence. Though in some cases, buyers are allowed to buy a home with 25 percent or less of the floor space designated as business or nonresidential space. But keep in mind that not all lenders will provide this type of financing.
Electricity
The property must have working electricity.
Mechanical Systems
The property’s heating, cooling and other mechanical systems must be in safe, working condition, and likely to remain in such condition.
Heating
VA appraisers consider this category superior to the mechanical systems category. With multiple heating systems there are also multiple requirements. Homes with solar heating systems or wood-burning stoves used as the primary source of heat also need a back-up heat source. Properties located in warmer climates may not require such systems.
Space Requirements
The property must have adequate space for the buyer and their families to live, sleep, cook, and eat. It must also have the proper sanitary facilities for such activities.
Water Supply and Sanitary Facilities
The VA requires buyers to live somewhere with hot water, as well as continually safe and potable drinking water. The property also needs to have an acceptable and sanitary sewage system in place. If the property is on a private well, a well test will be required.
Crawl Space
If the property has a crawl space, the space must be accessible and free of debris. Any excessive moisture must be treated.
Ventilation
When referring to crawl spaces and attics the property must have proper ventilation in these areas. With ventilation you will avoid problems with moisture and related problems such as mold that could cause unsafe health conditions.
Roof Covering
The roof must be leak proof, in good shape and free of defects.
Keep in mind, this list isn’t exhaustive, there are additional minimum property requirements outlined by the VA, these are just the most common. If buyers are interested in a home that has a MPR issue, they have a few options: they can look for a different property, negotiate for the seller to cover the cost of repairs or, if they have the funds, they may be able to cover the cost of repairs themselves, but they should talk with their loan officer about this option first.