What Veterans Should Know About VA Appraisal Repairs
Understanding the VA Appraisal Process
When you buy a home with a VA loan, the property must meet certain standards before the loan can close. A VA appraiser inspects the home and issues a report. If the appraiser finds problems, the loan may require repairs before final approval. This is not a pass-fail test; it is a safety and soundness check. The appraiser looks for things like peeling paint, broken windows, missing handrails, or a damaged roof. These items can stop a loan from moving forward until they are fixed.
Many veterans assume that once they make an offer and get approved for financing, the hard part is over. But the VA appraisal step often catches first-time buyers off guard. The appraiser works for the lender, not for you. Their job is to protect the VA loan program from risk. If the home does not meet the minimum property requirements, you cannot close until the issues are resolved. This is where the term VA appraisal repairs comes into play. It refers to the list of defects the VA appraiser flags that must be corrected before the loan can fund.
What Counts as a Required Repair?
The VA does not require a home to be perfect. Minor cosmetic issues are fine. But anything that affects safety, structural integrity, or basic livability must be fixed. Common examples include:
- Peeling lead-based paint on homes built before 1978
- Broken or missing windows
- Roof leaks or visible damage
- Faulty electrical wiring or exposed wires
- Mold or water damage that suggests ongoing moisture problems
Each repair must be completed by a licensed contractor or qualified professional, and the work must pass a final inspection. The VA appraiser or a VA fee inspector will verify that the repairs were done correctly. If the seller is unwilling to make the repairs, the buyer may need to walk away or negotiate a credit. But the VA does not allow the buyer to simply take a credit and skip the fix; the repair must actually happen.
Who Pays for the Repairs?
In most cases, the seller pays for the required repairs. This is standard in real estate transactions. The buyer can request that the seller handle the work before closing. If the seller refuses, the buyer can either pay for the repairs themselves or cancel the contract. VA guidelines allow buyers to pay for repairs that are not structural in nature, but the lender must confirm the buyer has the funds to cover the cost. It is not uncommon for a seller to agree to a repair credit at closing, but the VA requires the work to be completed by a licensed professional before the loan funds. That means the buyer cannot simply pocket the credit and ignore the repair.
For veterans using a VA loan, the key is to have a real estate agent who understands VA appraisal repairs. An agent who has worked with VA buyers before will know how to negotiate repair requests and keep the deal on track. They can also help the buyer understand which repairs are truly required and which are just cosmetic suggestions.
Common Pitfalls to Watch For
One common mistake is assuming the VA appraisal is the same as a home inspection. It is not. A home inspection is a detailed look at the property’s condition, while the VA appraisal focuses on minimum property requirements. The appraiser does not check for things like plumbing leaks behind walls, furnace efficiency, or termite damage unless they are visible. A home inspection can uncover issues that the VA appraiser might miss. If you buy a home with only the VA appraisal, you could end up with expensive surprises after closing.
Another pitfall is timing. VA appraisal repairs can delay closing if not handled quickly. A seller may drag their feet on getting a contractor out, or the contractor may have a backlog of work. If you are on a tight timeline, ask the seller to start repairs as soon as the appraisal report comes in. Stay in touch with your lender and realtor to track progress. If the repairs are not done by the closing date, you may need to extend the contract or risk losing the deal.
How to Handle Appraisal Repairs Smoothly
The best approach is to plan ahead. Before making an offer, ask your realtor to review the property for potential VA red flags. Look for peeling paint on older homes, missing handrails on stairs, and obvious roof issues. If the home has a septic system, make sure it is inspected and in good condition. The VA requires that septic systems be functional and accessible for maintenance. Also check that the home has a working heating system and that all bedrooms have at least one window that can open for emergency egress.
Once the appraisal report arrives, read it carefully. Your lender will give you a list of required repairs. Work with your realtor to negotiate who will handle each item. If the seller agrees to make the repairs, get a timeline in writing. If the seller offers a credit instead, confirm with your lender that the VA will allow that option. In some cases, the VA will accept a credit if the buyer can show that the repair will be completed after closing. This is rare and requires lender approval.
When to Walk Away
Not every deal is worth saving. If the required repairs are extensive or the seller is unwilling to cooperate, walking away may be the smart move. VA loans are designed to protect veterans from buying unsafe homes. If a property has major structural issues, mold, or electrical hazards, it may not be worth the hassle. Your earnest money deposit should be refundable if the repair requirements make the deal impossible. Check your purchase contract for contingency clauses related to VA appraisal repairs. Most standard contracts include an appraisal contingency that lets you back out if the property does not meet VA requirements.
Home Loans by Carlos Scarpero, Powered by Edge Home Finance, NMLS #1674385 is also on YouTube.
Final Thoughts
The VA appraisal process exists to keep veterans safe and to protect the integrity of the VA loan program. It can feel like an obstacle, but it is actually a safeguard. Understanding what the VA requires and how to handle repairs can make the difference between a smooth closing and a stalled deal. Work with a lender and realtor who have experience with VA loans. They will know the common issues and how to keep the process moving.
If you are a veteran or military family looking for guidance on VA home loans, a VA mortgage specialist can help you compare lenders and navigate purchase, refinance, credit, and complex VA home loan situations. For more information, contact Home Loans by Carlos Scarpero, Powered by Edge Home Finance, NMLS #1674385 at 513 Windsor Park Dr c, Dayton, OH 45459, USA by phone at +1 937-572-3713.