VA Pamphlet 26-7 (VA Lenders Handbook), Chapter 12: Minimum Property Requirements -- Effective after May 1, 2026
Source: U.S. Department of Veterans Affairs, KnowVA Article ID 554400000314692 (Updated Aug 12, 2026)
Official URL: https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000314692/VA-Pamphlet-VAP26-7-Chapter-12-Minimum-Property-Requirement-Overview-Effective-after-May-1-2026
Retrieved: 2026-10-11 (text copy of the agency web page; KnowVA renders only in a browser)
Chapter 12. Minimum Property Requirement
Topic 1. Minimum Property Requirement Procedures
Topic 2. Marketable Real Estate Entity
Topic 3. Space Requirements
Topic 4. Access
Topic 5. Encroachments
Topic 6. Drainage and Topography
Topic 7. Geological or Soil Instability, Subsidence, and Sinkholes
Topic 8. Special Flood Hazard Area
Topic 9. Coastal Barrier Resources System
Topic 10. Lava Flow Hazard Areas
Topic 11. Non-Residential Use
Topic 12. Zoning
Topic 13. Local Housing/Planning Authority Code Enforcement
Topic 14. Utilities
Topic 15. Water Supply and Sanitary Facilities
Topic 16. Individual Water Supply
Topic 17. Individual Sewage Disposal
Topic 18. Shared Wells
Topic 19. Community Water Supply/Sewage Disposal Requirements
Topic 20. Hazards
Topic 21. Defective Conditions
Topic 22. Mechanical Systems
Topic 23. Heating
Topic 24. Leased Mechanical Systems and Equipment
Topic 25. Alternative Energy Equipment
Topic 26. Roof Covering
Topic 27. Attics
Topic 28. Crawl Space
Topic 29. Basements
Topic 30. Swimming Pools
Topic 31. Burglar Bars
Topic 32. Lead-Based Paint
Topic 33. Wood Destroying Insects/Fungus/Dry Rot
Topic 34. Potential Environmental Problems
Topic 35. Stationary Storage Tanks
Topic 36. Mineral, Oil and Gas Reservations or Leases
Topic 37. High Voltage Electric Transmission Lines
Topic 38. High Pressure Gas and Liquid Petroleum Pipelines
Topic 39. Properties Near Airports
Topic 40. Manufactured Homes Classified as Real Estate
Topic 41. Modular Homes
Topic 42. Energy Conservation and Sustainability
Topic 43. Requests for Waiver of MPR Repairs
Topic 1. Minimum Property Requirement Procedures
Change Date:
February 27, 2026
Subtopics g and i, Detached Improvements and SAH RLC Jurisdiction, haves been removed.
a. MPRs
VA has established Minimum Property Requirements (MPRs) to protect the interests of Veterans, lenders, servicers, and VA. Properties must meet these requirements prior to guaranty of the loan by VA.
b. Appraisal is Not a Home Inspection
While VA-assigned fee appraisers must note any readily apparent repairs that are needed, it is important to distinguish the differences between a real estate appraisal and a home inspection report. The fee appraiser will not perform operational checks of mechanical systems or appliances. The fee appraiser estimates the value of the property to ensure that it is sufficient for the amount of the proposed loan.
c. Safe, Sound, Sanitary
MPRs help ensure that the property is safe, structurally sound, and sanitary. The scope of MPRs also includes issues related to the property’s location and legal considerations.
d. Appraisal Subject to Repairs to meet MPRs
The appraiser will prepare origination appraisals "subject to" the completion of any MPR repairs that appear to be needed and include the contributory value of the completed repairs in the estimated market value. Liquidation appraisals are prepared "as-is" (see Chapter 11, Topic 20 of this Handbook).
e. Recommend Repairs, Not Inspections
Appraisers must not prepare appraisals subject to inspections. The appraiser must recommend repairs, not inspections, for any conditions that do not appear to meet MPRs.
f. Cosmetic Items
The appraiser should not recommend repairs of cosmetic items, items involving minor deferred maintenance or normal wear and tear, or items that are inconsequential in relation to the overall condition of the property. While minor repairs should not be recommended, the appraiser should consider these items in the overall condition rating when estimating the market value of the property.
g. Home Inspection Recommended
After an origination appraisal is completed, the Notice of Value (NOV) that is issued to the Veteran includes a recommendation that the Veteran may wish to obtain a home inspection (see Chapter 13, Appendix A of this Handbook).
h. Local Requirements
Information about MPRs concerning properties in specific locations are listed by state at http://www.benefits.va.gov/HOMELOANS/appraiser_cv_local_req.asp.
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Topic 2. Marketable Real Estate Entity
Change Date:
October 18, 2019
This Chapter has been revised in its entirety.
a. Single Real Estate Entity
The property must be a single, readily marketable, real estate entity.
b. Multiple Parcels
More than one parcel or lot may be included as long as all of the property is contiguous and legally marketable. VA does not set a limit on the number of acres that the property may have. If the property being appraised includes more than one parcel, the appraisal must be prepared subject to placing all of the parcels on one deed.
c. Road or Waterway Dividing the Property
If a property is divided by a road or waterway, the appraiser must determine the effect on the utility of the property to ensure that the property is a readily marketable, real estate entity.
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Topic 3. Space Requirements
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Space Requirements
Each living unit must have sufficient space for:
living,
sleeping,
cooking and dining, and
sanitary facilities.
b. Non-Standard Construction
Non-standard house styles which may be unique in a market area, for example, log houses, earth sheltered houses, dome houses, and houses with lower than normal ceiling heights, must meet any local building codes. The appraiser must consider the marketability of the home in the appraisal.
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Topic 4. Access
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Street Access
Each property must be provided with a safe and adequate pedestrian or vehicular access from a public or private street with an all-weather surface.
b. Private Road Requirements
Private roads must be:
protected by a permanent easement, and
maintained by a homeowners association or joint maintenance agreement.
c. Maintenance Agreement Signatures
If a maintenance agreement does not exist, every effort should be made to obtain the agreement of all owners of properties on the private road to share the cost of maintaining the road.
d. RLC Approval Required if the Veteran is Accepting Additional Responsibility
In the absence of an agreement signed by all owners, particularly those of properties located between the subject property and the public road, an agreement by a Veteran to accept responsibility for a disproportionate share of the road must be reasonable in regards to the distance from the subject property to the public road. The RLC of jurisdiction must be contacted in order to approve the agreement. VA will not accept an agreement in which the Veteran accepts sole responsibility for maintaining an unreasonable distance of the private road as this could create a burden for the Veteran as well as future property owners.
e. Private Street in PUD or Condominium
If private street maintenance is covered in the organizational documents for a planned unit development (PUD) or condominium, or by state law, the NOV may be issued without a requirement for further documentation.
f. Easements Must Run with the Land
Each living unit must be accessible without passing through any other living unit or trespassing on adjoining properties. Any easements required must run with the land.
g. Backyard Access
Access to the backyard must be provided without passing through any other living unit. For a row-type dwelling, the access may be by means of
an alley,
easement, or
passing through the subject dwelling.
h. Exterior Wall Access
Adequate space to perform maintenance of the exterior walls must be present between buildings.
i. Property Constructed Adjacent to Another Property Line
A building constructed on or next to a property line must be separated from the adjoining building by a wall extending the full height of the building from the foundation to the ridge of the roof.
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Topic 5. Encroachments
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Encroachments
The appraiser must report any apparent encroachments of the subject’s dwelling, garage, or other improvements onto an adjacent property, right-of-way, utility easement, or building restriction line and any apparent encroachments of a neighboring dwelling, garage, or other improvements onto the subject property.
b. Prompt Notification
The appraiser must notify the lender of the encroachment promptly to provide as much time as possible to resolve the issue.
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Topic 6. Drainage and Topography
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Grading
The site must be graded so that it
provides positive, rapid drainage away from the perimeter walls of the dwelling, and
prevents ponding of water on the site.
b. Topographic Conditions
The appraiser must report any danger due to topographic conditions, such as mudslides from adjoining properties, falling rocks, or avalanches.
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Topic 7. Geological or Soil Instability, Subsidence, and Sinkholes
Change Date:
October 18, 2019
This Chapter has been revised in its entirety.
a. Soil Conditions
The appraiser must report any readily observable soil conditions of the site, and other physical features that affect the value of the site. The appraiser should also consider any published reports regarding the instability of the soil and surface support of the land concerning the subject and nearby properties. The appraiser must consider any effect on the estimated market value of the property.
b. Subsidence
Subsidence may be encountered where homes are constructed on uncontrolled fill or unsuitable soil, in locations near mining activity or extraction of subsurface minerals (to include fracking), or where the subsoil or subsurface is unstable and subject to slippage or expansion. Signs of subsidence may include cracks in the terrain, sinkholes, foundation damage or settlement problems.
c. Dangerous Subsidence or Sinkholes
The appraiser must report any probable or imminent danger of subsidence or sinkholes. Depending on the extent of the problem, it could be considered a hazard (see Topic 20 of this Chapter) which would make the property ineligible. The appraiser must notify the lender promptly when a hazardous condition is found.
d. Repairs by Contractor
If a settlement problem that does not have the severity of a hazard is apparent, the appraisal must be prepared "subject to repair" by a licensed contractor (for example, step-cracks in an exterior wall, or cracked flooring with significant vertical displacement).
e. Hairline Cracks
Minor hairline cracks due to expansion or normal settlement that are common in the market area do not typically require repair.
f. New or Proposed Property
For new or proposed construction properties, in areas that have a history of geological or soil instability, the builder must submit either:
a certification that to the best of the builder’s knowledge and belief, any geological or soil-related hazard has been compensated for in the engineering design of the improvements and no portion of the construction will rest on fill, or
evidence from a qualified geologist or engineer that the subject site either does not present unusual geological soils-related hazards or such hazards have been compensated for in the engineering design of the improvements. (Qualified geologists are state licensed or are a member of a national or state organization which requires responsibility, experience, education and demonstrated ability in the field of engineering geology.)
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Topic 8. Special Flood Hazard Area
Change Date:
October 18, 2019
This Chapter has been revised in its entirety.
a. Flood Insurance
Properties located in a FEMA Special Flood Hazard Area (SFHA) must be covered by a flood insurance policy. Properties located in a SFHA are not eligible if flood insurance is not available.
b. Regular Flooding
Based on the appraiser’s knowledge of the market area, properties that are subject to regular flooding are not eligible, whether or not the area has been designated an SFHA.
c. Verification of Flood Zone
While appraisers must provide flood zone information on the appraisal report, flood zone maps do not typically indicate the location of specific properties. Lenders are responsible for verifying the flood zone information.
d. Flood Zones
SFHAs are usually designated Zones A, AO, AH, A1-A30, AE, A99, AR, AR/AE, AR/AO, AR/A1-A30, AR/A, V, VE, and V1-V30. Flood insurance is not required in Zones B, C, X, and D.
e. Excluding Non-Residential Improvements
At the Veteran’s request, non-residential improvements such as detached garages and small sheds may be excluded from the flood insurance policy if they are also excluded from the appraised value. The cost of flood insurance with and without coverage for the detached building should be compared as excluding a detached building may not be worthwhile.
f. Private Flood Insurance
Veterans may elect to obtain private flood insurance instead of obtaining flood insurance through the National Flood Insurance Program.
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Topic 9. Coastal Barrier Resources System
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Eligibility
Properties located in Coastal Barrier Resources System (CBRS) areas are not eligible for an appraisal.
b. Appraiser Responsibilities
Appraisers who perform appraisals for VA near the Atlantic Ocean, the Great Lakes, the Gulf of Mexico, or the Caribbean Sea must be familiar with any CBRS areas. If the appraiser finds that a property on which an appraisal has been ordered is located in a CBRS area, the appraiser must stop work and promptly notify the lender.
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Topic 10. Lava Flow Hazard Areas
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Appraiser Responsibility
Lava Flow Hazard Zones are designated by the United States Geological Survey. Appraisers who perform appraisals for VA in affected areas must be familiar with these zones.
b. Property Eligibility
Properties in Zones 1 and 2 are not eligible for appraisal. If the appraiser finds that a property on which an appraisal has been ordered is located in Zone 1 or 2, the appraiser must stop work and promptly notify the lender.
c. Market Value to be Considered
If the property is in a Lava Flow Hazard Zone other than Zone 1 or 2, the appraiser must report the zone information in the appraisal and analyze the effect on market value.
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Topic 11. Non-Residential Use
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Eligibility Considerations
A property that has both a residential and business use may be eligible for loan guaranty if:
the property is primarily for residential use,
the non-residential use does not impair the residential character,
the property contains no more than one business unit, and
the property is legally permitted and conforms to current zoning, or is a legal, non-conforming use that is accepted by the local authority.
b. No Value to Business or Commercial Property
No value may be given to the business operations or commercial fixtures in the appraisal.
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Topic 12. Zoning
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Zoning Compliance
The property must comply with all applicable zoning ordinances.
b. Legal, Non-Conforming Use
If the property does not comply with current zoning ordinances, but is accepted by the local authority, the appraiser must describe the property as "Legal Non-Conforming" and comment on the property’s marketability and any adverse effect this classification may have on value. The appraiser must state whether or not the dwelling may be legally rebuilt if destroyed.
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Topic 13. Local Housing/Planning Authority Code Enforcement
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Local Authority Requirements
If the property is located in an area where specific local housing/planning authority code requirements are enforced in conjunction with the sale of homes, the appraiser must describe the requirements in the appraisal report.
b. Repairs Required by a Local Authority
If the appraiser is aware of any repairs that will be required due to local code enforcement, for example, the removal of unpermitted improvements, the appraiser must prepare the appraisal subject to these repairs.
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Topic 14. Utilities
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Electricity
Each living unit must have electricity for lighting and for necessary equipment.
b. Appraiser Not Conducting Operational Checks
Since the appraiser does not perform any operational checks of mechanical systems or appliances, the utilities are not required to be turned on when the appraiser visits the property.
c. Electrical Wires
Any visible frayed or exposed electrical wires must be repaired.
d. Utilities for Living Units
Utility services must be independent for each living unit, except
units in a two to four-unit property may share water, sewer, gas, or electricity as long as there are separate service shut-offs for each unit, and
units under separate ownership may share connections from the main to the building line when those connections are protected by an easement and a maintenance agreement acceptable to VA.
e. Access for Maintenance and Repair
Individual utilities serving one living unit shall not pass over, under, or through another living unit unless there is a legal provision for a permanent right of access for maintenance and repair of the utilities without trespass on adjoining properties.
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Topic 15. Water Supply and Sanitary Facilities
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Water and Sewer
The property must have:
a continuous supply of safe and potable water for drinking, bathing, showering and sanitary uses,
hot water,
sanitary facilities, and
a safe method of sewage disposal.
b. Safe Drinking Water
Given the importance of safe drinking water, appraisers must ensure that accurate water supply information is reported in the appraisal and the Staff Appraisal Reviewer (SAR) must condition the NOV appropriately. If the appraiser is aware of any issues regarding the water supply, the appraiser must comment in the appraisal.
c. Market Value Considerations
Appraisers must comment and adjust for any market reaction discovered as a result of water contamination, as well as any environmental stigma.
d. Filtration of Water
Proper mitigation of lead contaminated water must include a central filtering system which filters all water that could serve the property’s occupants. When public water must be filtered, the requirements for individual water filtering under Topic 17, Subsection d of this Chapter including a Veteran’s acknowledgement, must be applied. Information about water filtration is available at http://www.nsf.org/newsroom/consumer-guide-to-nsf-international-certified-lead-filtration-devices.
e. Individual Water Supply
If the property has an individual water supply see Topic 17 of this Chapter for additional requirements.
f. Individual Sewer Supply
If the property has an individual sewer supply see Topic 18 of this Chapter for additional requirements.
g. Connection Mandated by a Local Authority
If public water or sewer is available and the local authority mandates connection, the appraiser must prepare the appraisal “subject to” connection.
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Topic 16. Individual Water Supply
Change Date:
March 11, 2019
This Chapter has been revised in its entirety.
a. Health Authority Requirements
Water quality for an individual water supply must meet the requirements of the health authority having jurisdiction. If the local authority does not have specific requirements, the guidelines established by the Environmental Protection Agency (EPA) will apply. Additional information is available at the following websites: https://www.epa.gov/privatewells/private-drinking-water-well-programs-your-state and https://www.cdc.gov/healthywater/drinking/private/wells/testing.html.
b. Third Party Testing
All testing must be performed by a disinterested third party. This includes collecting and transporting the water sample from the water supply source. The sample may be collected and tested by the local health authority, a commercial testing laboratory, a licensed sanitary engineer, or other party that is acceptable to the local health authority. At no time will the Veteran or other interested party collect and/or transport the sample.
c. Conditions Requiring a Veteran’s Signed Statement
The appraiser must comment in the appraisal and the Veteran must acknowledge awareness in writing when the water to the property is:
supplied by dug wells, cisterns, or holding tanks used in conjunction with water purchased and hauled to the site,
provided with a mechanical chlorinator,
provided through springs, lakes, rivers, sand-point or artesian wells, or
supplied with a rainwater catchment system.
d. Water Filtration System
If the property has a water filtration system, the Veteran must acknowledge in writing that the water must be continuously treated as required by the local health authority to be considered safe for human consumption and for this to be effective, the system must be inspected and maintained to include filter replacements per the manufacturers’ recommendations.
e. Distance Requirements
The appraiser must be familiar with the minimum distance requirements between private wells and sources of pollution. The appraiser is not required to sketch or note distances between the well, property lines, septic tanks, drain fields, or building structures.
f. Testing Validity Period
Water quality test results are valid for 90 days from the date certified by the local health authority unless the local authority indicates otherwise.
g. Connection Mandated by a Local Authority
If public water is available and the local authority mandates connection, connection is required (see Topic 16 of this Chapter).
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Topic 17. Individual Sewage Disposal
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Individual Sewage Disposal
An individual sewage disposal system must adequately dispose of all domestic wastes in a sanitary manner which will not create a nuisance, or in any way endanger the public health.
b. Pit Privies
Individual pit privies are acceptable where such facilities are customary and installed in accordance with the recommendations of the local health authority.
c. Health Authority Approval
On proposed construction cases, or new or existing construction cases where the appraiser notes a problem, or if the area is known to have soil percolation problems, health authority approval of the individual sewage disposal system is required.
d. Connection Mandated by a Local Authority
If public sewer is available and the local authority mandates connection, connection is required (see Topic 16 of this Chapter).
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Topic 18. Shared Wells
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Shared Well Requirements
A shared well refers to a well that serves two or more properties. The shared well must be:
capable of providing a continuing supply of safe and potable water to each property simultaneously, so that each dwelling will be assured a sufficient quantity for all domestic purposes,
protected by a permanent easement, which allows for maintenance and repair, and
maintained under a well-sharing agreement containing provisions for the cost of repairs that is binding on the signatory parties and successors in title and has been recorded in public records.
b. Appraiser Responsibility
The appraiser must report that that the property is served by a shared well and note any readily apparent deficiencies.
c. Lender Responsibility
The lender must obtain the shared well agreement and review the agreement to determine eligibility.
d. Water Quality
The water quality must meet the requirements for individual wells described in Topic 17 of this Chapter.
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Topic 19. Community Water Supply/Sewage Disposal Requirements
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Community Water/Sewer to be Noted in an Appraisal
A community water/sewage system refers to a central system that is owned, operated, and maintained by a private corporation or a nonprofit property owners’ association. The appraiser must note that the property is on a community water/sewage system in the appraisal report.
b. Sufficient Water Supply
The water supply must be sufficient in size for the project. Water quality must be approved by the local or state health authority.
c. Adequate Size Sewage System
The sewage system must be adequate in size and properly operated and maintained to prevent it from becoming a menace to public health.
d. Local/State Authority Approval
The lender must obtain evidence of approval of the facilities by the local or state health authority.
e. Trust Deed
A trust deed is required if the local or state authority that approved the system does not:
enforce compliance with its requirements,
fix rates, and
provide for prompt relief in case of deficient operation, service, or exorbitant rates.
f. Trust Deed for Private System
If a trust deed is required for a privately-owned system, it should be similar to the trust deed found in HUD Handbook 4075.12.
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Topic 20. Hazards
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Hazards
The property must be free of hazards which may:
adversely affect the health and safety of the occupants,
adversely affect the structural soundness of the dwelling and other improvements to the property, or
impair the customary use and enjoyment of the property by the occupants.
b. Prompt Notification of the Lender
The appraiser must notify the lender promptly when a hazard is identified so that the eligibility of the property may be addressed and, depending on the nature of the hazard, to provide as much time as possible to resolve the situation.
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Topic 21. Defective Conditions
Change Date:
October 18, 2019
This Chapter has been revised in its entirety.
a. Definition
Conditions which impair the safety, sanitation, or structural soundness of the dwelling will cause the property to be unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. The integrity of the envelope of the structure must not be compromised.
b. Appraisals "Subject to" Repair of Defective Conditions
Appraisals must be prepared “subject to” the repair of any defective conditions with the contributory value of the completed repair included in value.
c. Examples
Examples of defective conditions include:
defective construction,
poor workmanship,
evidence of continuing settlement,
excessive dampness,
leakage,
decay, and
termites.
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Topic 22. Mechanical Systems
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Requirements
Mechanical systems must be:
safe to operate, and
protected from destructive elements.
b. Appraiser Responsibility
While the appraiser is not required to test the operation of any mechanical systems, the appraiser should recommend the completion of any repairs that are readily apparent.
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Topic 23. Heating
Change Date:
February 27, 2026
Subtopic b, Non-Vented Heater, has been removed
a. Requirement
Heating must be permanently installed and maintain a temperature of at least 50 degrees Fahrenheit in areas with plumbing.
b. Mild Climate
In areas with a mild climate, heating may not be required (see Topic 1, Subsection h of this Chapter).
c. Air Conditioning
Air conditioning is not required, but if installed, must be operational. If any needed repairs to the air conditioning equipment are apparent, the appraiser must prepare the appraisal subject to the repair of the air conditioning system by a licensed heating/air conditioning contractor.
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Topic 24. Leased Mechanical Systems and Equipment
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. No Value to Leased Equipment
The appraiser must not include the value of any leased mechanical systems or any other leased equipment in the estimated market value as leased items are not suitable security for a loan. This includes, but is not limited to, fuel or propane storage tanks, solar or wind systems (including power purchase agreements), and other alternative energy equipment.
b. Leased Equipment to be Noted in the Appraisal
The appraiser must identify leased items in the appraisal report. Some leases may encumber the title making the property less than fee simple. The appraiser must consider any detrimental effect on the value of the property if the leased items are removed by the lessor.
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Topic 25. Alternative Energy Equipment
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Alternative Energy Systems
Alternative energy systems use wind, geothermal, or solar energy to produce energy to support the habitability of the structure.
b. Market Acceptance to be Considered
The appraiser must analyze the market acceptance of special energy-related building components and equipment, including solar energy components, high-energy efficiency housing features and components, geothermal systems, and wind powered components.
c. No Value to Leased Equipment
Leased equipment must not be given value in the appraisal.
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Topic 26. Roof Covering
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Requirement
The roof covering must:
prevent entrance of moisture, and
provide reasonable future utility, durability, and economy of maintenance.
b. Multiple Shingle Layers
When a defective roof with three or more layers of shingles must be replaced, all old shingles must first be removed.
c. Appraiser Expectation
The appraiser is not required to climb onto the roof.
d. Appraisal Considerations when the Roof is Not Visible
When the appraiser is unable to view the roof, the appraiser must explain why the roof is unobservable and report how the condition of the roof was determined. For example, a roof may be covered with snow yet the appraiser observed no evidence of leaks and documentation was provided to the appraiser verifying the age of the roof. If available, other methods such as drones could be utilized to show the area.
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Topic 27. Attics
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Appraiser Expectations
Fee appraisers must view the interior of readily accessible attic spaces. The appraiser is not required to climb into the attic. The appraiser is not required to move insulation or personal items that may hinder visibility. If there is no scuttle or other access to the attic, there is no requirement to provide access.
b. Deficient Conditions
If a deficient condition (for example, a water-stained ceiling or insufficient ventilation) is apparent, the appraiser must prepare the appraisal subject to the repair.
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Topic 28. Crawl Space
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Appraiser Expectation
Fee appraisers are required to view, but not enter, the crawl space.
b. Requirements
The crawl space must:
have adequate access,
be clear of debris, and
be properly vented.
c. Floor Joists
The floor joists must be sufficiently above the highest level of the ground to provide access for maintenance and repair of ductwork and plumbing.
d. Dampness
Any excessive dampness or ponding of water must be corrected.
e. Vacant Area Beneath House
Not all houses with a vacant area beneath the flooring are considered to have a crawl space particularly if no mechanical systems are present, and there is no reason for access. If the area is properly vented and free of moisture, this condition is acceptable.
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Topic 29. Basements
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Dampness or Structural Problems
The appraiser must report any dampness, or obvious structural problems that might affect the health and safety of occupants or the soundness of the structure.
b. Sump Pump
If a sump pump is present, the appraiser must recommend repair if it is not hard-wired by an acceptable wiring method or equipped with a factory electrical cord that is connected to a suitable receptacle.
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Topic 30. Swimming Pools
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Pool Equipment
If the pool water contains algae or if the pool has been winterized, and the appraiser cannot determine if the pool equipment is in good working order, the appraiser may complete the appraisal under the extraordinary assumption that the pool and its equipment can be repaired at minimal cost without recommending any repairs.
b. Structural Defects
The appraiser must report readily observable defects including unstable sides and structural issues that would render the pool inoperable or unusable. Depending on the extent of the damage, the appraiser must prepare the appraisal report “subject to” the repair of the pool, and include the pool in value, or prepare the appraisal “subject to” permanently filling in the pool, in accordance with local guidelines, and re-grading the yard, if necessary.
c. Above-Ground Pools
Above-ground pools which include water filtering equipment and decking may be included in value if the appraiser determines that above-ground pools are customary and accepted in the market area.
d. Local Requirements for Securing Pools
Swimming pools must be secured in accordance with any local requirements. On a liquidation appraisal, if the pool is unsecure, securing the pool must be included on the repair list and reported as a safety hazard on the liquidation addendum.
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Topic 31. Burglar Bars
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Requirement
If a property has burglar bars, at least one window per bedroom must have a quick-release mechanism, unless there is an exterior door from the bedroom providing rapid egress.
b. Removal of Burglar Bars
If the appraiser is not able to confirm that quick release mechanisms are in good working order, the appraiser should prepare the appraisal subject to removal of the burglar bars as a safety consideration.
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Topic 32. Lead-Based Paint
Change Date:
February 27, 2026
Subtopic a, Properties Built in 1978 or later has been condensed and subtopic b, Properties built before 1978, phrase “or related improvements” has been removed.
a. Properties Built in 1978 or Later
Defective paint on a dwelling built in 1978 or later is normally considered cosmetic.
b. Properties Built Before 1978
If the dwelling was built before 1978, the presence of lead-based paint must be presumed. Any defective lead-based paint is a safety hazard that must be remediated. The appraiser must clearly identify the location of any defective paint. Economic feasibility is not an acceptable reason for waiver of a repair involving lead-based paint.
c. Correction of Defective Lead-Based Paint
Any defective lead-based paint must receive adequate treatment to prevent the ingestion of contaminated paint. Either:
the surface requiring treatment must be thoroughly washed, scraped, wire brushed or otherwise cleaned to remove all cracking, scaling, peeling, chipping, and loose paint, and then repainted with two coats of a suitable nonleaded paint, or
the paint shall be completely removed or the surface covered with a suitable material such as gypsum wallboard, plywood, or plaster before any painting is undertaken if the integrity of the surface needing treatment cannot be maintained.
d. Appraiser Certification of Repairs
The completion of all repairs involving defective lead-based paint must be certified by the VA-assigned appraiser.
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Topic 33. Wood Destroying Insects/Fungus/Dry Rot
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Apparent Damage
Appraisers must report any apparent evidence of wood destroying insect infestation, fungus growth or dry rot. The appraisal must be prepared subject to a wood destroying insect inspection if any infestation or damage is apparent, and all damage must be repaired.
b. Termite Infestation Probability Map
If the property is located in an area on the Termite Infestation Probability Map where the probability of termite infestation is "very heavy" or "moderate to heavy" on origination appraisals, a wood destroying insect inspection report must be required on the NOV.
USDA Forest Service Home and Garden Bulletin 64 (revised 2006)
c. Local Requirements Webpage
The specific borders for some of the zones are difficult to determine from this map. Additional information may be found on VA’s local requirements webpage (see Topic 1, Subsection h of this Chapter).
d. Non-Residential Improvements
Small sheds or other detached, non-residential improvements which were not given value on the appraisal report may be excluded from the inspection report.
e. Requirements for Properties in Condominium Developments
A termite inspection is not required on units in high-rise condominiums (units are stacked vertically). For villa and townhome style condominiums where units are side by side, not stacked, if located in a “very heavy” or “moderate to heavy” zone, a termite inspection must be required on the NOV unless the homeowners association provides evidence of treatment.
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Topic 34. Potential Environmental Problems
Change Date:
February 27, 2026
Radon Gas has been removed in its entirety.
a. Potential Environmental
Problem The appraiser must report and consider the effect on value of any apparent indication of a potential environmental problem.
b. Examples
Examples include, but are not limited to:
underground storage tanks,
slush pits,
oil and gas wells (operating or abandoned),
hydrogen sulfide gas emitted from petroleum product wells,
chemical contamination (including methamphetamine) or
soil contamination from sources on or off the property.
c. Appraisal Considerations
The appraisal report must be prepared subject to correction of the problem in accordance with any local, state, or federal requirements, or documentation from the appropriate local, state, or federal authority that the condition is acceptable.
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Topic 35. Stationary Storage Tanks
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Distance Requirement
If the property is located within 300 feet of an above-ground or subsurface stationary storage tank with a capacity of 1,000 gallons or more containing flammable or explosive material, the appraiser must report this information in the appraisal. This includes storage tanks for domestic and commercial uses as well as automotive service station tanks.
b. Comparable Sales
The appraiser should use comparable sales in similar locations, if available.
c. NOV Requirement
The SAR must include the information on the NOV, requiring the Veteran’s signed acknowledgement to ensure the Veteran is fully informed of the situation.
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Topic 36. Mineral, Oil and Gas Reservations or Leases
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Influence on Property
The appraiser must analyze and report the degree to which residential benefits may be impaired or the property damaged by the exercise of the rights set forth in oil, gas, and mineral reservations or leases.
b. Appraisal Considerations
The appraiser should consider the following:
the infringement on the property rights of the fee owner caused by the rights granted by the reservation or lease, and
the hazards, nuisances, or damages to the subject property from exercise of reservation or lease privileges on neighboring properties.
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Topic 37. High Voltage Electric Transmission Lines
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Residential Structure
No part of any residential structure may be located within a high voltage electric transmission line easement.
b. Detached Improvements
Any detached improvements even partially in a transmission line easement will not receive value for VA purposes.
c. Distance Requirement
If the property is within 100 feet from the nearest boundary of a high voltage electric transmission line easement, the appraiser must comment in the appraisal.
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Topic 38. High Pressure Gas and Liquid Petroleum Pipelines
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Residential Structure
No part of any residential structure may be located within a high-pressure gas or liquid petroleum pipeline easement.
b. Detached Improvements
Any detached improvements, even partially in the pipeline easement will not receive value for VA purposes.
c. Distance Requirement
If the property is within 100 feet from the nearest boundary of a high-pressure gas or liquid petroleum pipeline easement, the appraiser must comment in the appraisal.
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Topic 39. Properties Near Airports
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Appraiser Responsibility
Appraisers must be familiar with noise zones and safety-related zones surrounding airports in areas where they perform appraisals for VA.
b. Appraisal Considerations
Whenever a property is located near an airport, appraisers must consider the effect on value of any airport noise and select comparable sales, if available, with the same airport influence.
c. Proposed Construction in a Clear Zone
Proposed construction located in a Clear Zone (also known as a Runway Protection Zone) is not eligible. The appraiser must stop working on the appraisal and notify the lender immediately.
d. Existing or New Construction in a Clear Zone
For existing or new construction located in a Clear Zone, the following Veteran’s acknowledgement must be required on the NOV and signed by the Veteran: "I am aware that the property being purchased is located near the end of an airport runway and this may have an effect upon livability, safety, value and marketability of the property."
e. Accident Potential Zone
For all properties located in an accident potential zone, the following Veteran’s acknowledgement must be required on the NOV and signed by the Veteran: "I am aware that the property being purchased is located in an accident potential zone and this may have an effect upon the livability, safety, value, and marketability of the property."
f. Maps Available Online
Airport noise zone maps may be found at https://www.faa.gov/airports/environmental/airport_noise/noise_exposure_maps/.
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Topic 40. Manufactured Homes Classified as Real Estate
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. MPRs
Manufactured homes must meet the VA MPRs described in this Chapter.
b. Real Estate Entity
The manufactured home and site must be considered a real estate entity in accordance with state law and meet all local zoning requirements for real estate.
c. Permanent Foundation
The manufactured home must be placed on a permanent foundation, constructed to withstand both supporting loads and wind-overturning loads, that meets state and local requirements.
d. HUD Standards
The manufactured home must be built to HUD Manufactured Home Construction and Safety Standards.
e. Space Requirements
The manufactured home must have a floor area of not less than 400 square feet for a singlewide, or 700 square feet for a double wide manufactured home.
f. State/Local Requirements
Fee appraisers are expected to be familiar with state and local regulations governing manufactured homes (for example, missing HUD labels, alterations, modifications, additions, or component replacements), and to prepare appraisals subject to appropriate requirements for compliance.
g. Proposed Construction
If the manufactured home is appraised as proposed construction, the following exhibits are required:
foundation plan,
floor plan showing room layout and exterior dimensions,
elevation plans, and
specifications for flooring, heating, plumbing, electrical equipment, appliances and other items included with the manufactured home.
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Topic 41. Modular Homes
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. State/Local Codes
Modular homes must meet all state and local building codes.
b. Comparable Sales
The appraiser will typically treat modular housing and on-frame modular housing in the same manner as conventionally built housing. The appraiser must select comparable sales that would be competing properties on the market which may include modular homes, conventionally built homes, or manufactured homes.
c. On-frame Modular Home Requirements
On-frame modular housing is factory built on a permanent chassis. The appraiser must ensure that:
all running gear is removed,
the crawl space is covered by a vapor barrier with vented permanent masonry skirting,
the skirting has an access hatch, and
the home is secured to a permanent foundation that meets state and local requirements.
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Topic 42. Energy Conservation and Sustainability
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Energy Efficient Mortgages
Energy efficient mortgages are described in Chapter 7 of this Handbook. Veterans are provided information about this program in item #1a on NOVs issued for existing properties (see Chapter 13, Appendix A of this Handbook).
b. Energy Conservation Encouraged
VA encourages home improvements that conserve energy, reduce water usage, enhance safety or strengthen disaster preparedness.
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Topic 43. Requests for Waiver of MPR Repairs
Change Date:
March 28, 2019
This Chapter has been revised in its entirety.
a. Waiver Requested by a Veteran
After the NOV has been issued, at the request of the Veteran, VA will consider waiving MPR repairs if the following conditions are met:
the request is signed by the Veteran,
the lender concurs with the Veteran’s request, and
the property is habitable from the standpoint of safety, structural soundness, and sanitation.
These requests should not allow for the Veteran to waive MPRs that could result in safety issues with the home.
b. Inspection Report
In support of the waiver request, while not required, providing an inspection report from a licensed professional who is qualified to assess the condition of the item in question will ensure the Veteran is fully informed about the condition of the item.
c. Contributory Value
If the request is approved, VA staff will amend the NOV, removing the repair requirement(s). Since appraisals are prepared “subject to” repairs, VA staff may reduce the value by the contributory value of the waived repair(s). If the contributory value of the repair item(s) is not material, the NOV may be issued without a change in value.
d. Materials Shortage Following a Natural Disaster
Following a natural disaster, shortages of materials could delay the completion of repairs. The RLC of jurisdiction should be contacted for consideration of repair waivers on a case-by-case basis when a Veteran wishes to proceed with purchasing or refinancing a home in need of repairs when needed materials are not readily available.
e. Escrowed Funds for Completion of Repairs
Depending on the nature of required repairs, it may be advantageous for the Veteran to have the MPR repairs completed after closing on the loan. Lenders may hold funds in escrow for repairs to be completed after closing, however all repairs must be completed and escrowed funds distributed before the loan may be guaranteed by VA.
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