Lender Responsibility

If the lender fails to exercise due diligence in determining appraisal eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property.

Properties not eligible for appraisal and other appraisal request restrictions are described in Sections 10.06 and 10.07. 

Existing Construction

A home which has either been previously owner-occupied or had all onsite and offsite improvements fully completed for one year or more is eligible.

New Construction

Newly completed properties (completed less than one year and never owner-occupied) are eligible if either

·   covered by a one-year VA builder’s warranty

·   enrolled in a HUD-accepted ten-year insured protection plan, or

·   built by a veteran, as the general contractor, for his/her own occupancy.

Note:  An exception may be made for a veteran who wishes to purchase a new home from a builder who is not more than occasionally involved with VA financing and will not provide either a one-year VA builder’s warranty or a ten-year insured protection plan.

Reference: See Section 10.08 for details.

Proposed or Under Construction

Property is eligible for appraisal prior to construction or during construction, if

·        the appraisal is based on proposed construction exhibits, and

·        the property is inspected by VA or HUD during construction

 Reference: See Section 10.09 for details.