VA Appraisal Requirements (MPRs)

VA loans have specific property requirements that must be met before the loan can close. Understanding these Minimum Property Requirements (MPRs) helps you know what to expect.

Why MPRs Exist

The VA wants to ensure veterans purchase homes that are:

• Safe to live in
• Structurally sound
• Sanitary
• A reasonable value for the purchase price

These requirements protect veterans from buying properties with serious issues.

Key MPR Categories

Structural Integrity

The home must be structurally sound:

• No significant foundation damage
• Roof must be functional with reasonable remaining life
• No major structural defects
• Adequate drainage away from the home

Mechanical Systems

All major systems must function:

• Heating system adequate for the climate
• Electrical system safe and functional
• Plumbing in working order
• Hot water available

Safety

The home must be safe to occupy:

• No exposed wiring
• Handrails on stairs where required
• No lead-based paint hazards (homes built before 1978)
• Smoke detectors present
• No trip hazards

Sanitation

The home must meet basic health standards:

• Functional bathroom(s)
• Kitchen sink and facilities
• Safe drinking water
• Proper sewage disposal

Access and Egress

• Safe entry and exit
• No significant health hazards blocking access
• Adequate ventilation

Common MPR Issues

Frequently Cited Problems

• Peeling paint on pre-1978 homes (lead paint concern)
• Missing handrails on stairs or elevated areas
• Roof issues with insufficient remaining life
• Heating/cooling problems
• Water damage or active leaks
• Pest damage (termites, etc.)
• Broken windows
• Non-functional appliances included in sale

What Happens If Issues Are Found

The VA appraiser notes any MPR issues on the appraisal. Options:

1. Seller makes repairs before closing
2. Repairs escrowed for completion after closing (limited circumstances)
3. Deal falls through if repairs aren't made

Unlike conventional loans, you can't simply accept the property as-is if it doesn't meet MPRs.

The "Tidewater" Process

If the appraiser believes the home won't appraise at the purchase price:

1. Appraiser notifies parties before completing the report
2. You have 2 business days to submit additional comparable sales
3. Appraiser considers the information
4. Final value is issued

This gives you a chance to influence the appraisal with market data.

What MPRs Don't Require

MPRs are minimum standards, not perfection:

• Cosmetic issues (paint, carpet, etc.) don't fail MPRs
• Outdated but functional systems are acceptable
• Minor repairs typical of older homes are usually fine
• General maintenance needs don't trigger failures

Homes That May Challenge MPRs

Consider potential MPR issues when looking at:

• Older homes (especially pre-1978 for lead paint)
• Fixer-uppers needing significant work
• REO/foreclosures that may have deferred maintenance
• As-is sales where seller won't make repairs

This doesn't mean you can't buy these homes with VA—just be aware repairs may be needed.

Preparing for the VA Appraisal

If you're the buyer:

• Tour with MPRs in mind
• Identify potential issues early
• Discuss with your agent before making offers

If issues are likely, you can:

• Negotiate repairs upfront
• Account for needed repairs in your offer
• Have a backup plan if repairs aren't possible

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Questions about VA loans and property requirements? Contact Greg Franklin or call (559) 816-7780 to discuss.