Properties Not Likely to Meet MPRs

Property in a badly deteriorated condition is not eligible for appraisal unless VA agrees there is a reasonable likelihood that it can be repaired to meet VA Minimum Property Requirements (MPRs) prior to loan closing.

Other MPR-related restrictions are outlined in Chapter 12.

Location-Related Problem

Property is not eligible for appraisal if the improvements are or will be located in

·   a Special Flood Hazard Area (SFHA) and either

-   it is proposed/under/new construction with elevation of the lowest floor below the 100 year flood level, or

-   flood insurance is not available (Reference: See Section 11.12)

·   an area subject to regular flooding for whatever reason, whether or not it is in an SFHA (Reference: See Section 11.12)

·   a Coastal Barrier Resources System area (Reference: See Section 11.12)

·   an airport Noise Zone 3, if proposed or under construction (Reference: See Section 11.12)

·   a transmission line easement involving high-pressure gas or liquid petroleum or high voltage electricity, if any part of the residential structure is located within the easement (Reference: See Section 12.07), or

·   an area susceptible to geological or soil instability (earthquakes, landslides or other history of unstable soils), if proposed/under/new construction and the builder cannot provide evidence that either the site is not affected or the problem has been adequately addressed in the engineering design (Reference: See Section 10.10).