Individual vs. “Master” Appraisals

Properties can be appraised prior to the start or completion of construction either

·   individually, or

·   as a group of 5 or more on a “master” appraisal.  Each model or house type is appraised at the same time by the same fee appraiser on a separate appraisal report.  All of the properties are included on the same VA Master Certificate of Reasonable Value.

Construction Exhibits

Construction exhibits must be provided with the request to appraise properties as “proposed or under construction”.  Reference: See Sections 10.04 and 10.10.

Construction Inspections

Properties appraised as “proposed or under construction” must be inspected by VA or HUD during construction (Reference: See Chapter 14).

The purpose of the inspection(s) is to help ensure that the property

·   is built according to the construction exhibits used in the appraisal, and

·   meets VA Minimum Property Requirements for proposed construction (Reference: See Section 12.02).

Only a final inspection is required if either

·   the property is to be covered by a ten-year insured protection plan (Reference: See “Construction Warranty” below), or

·   VA can rely on local building authority inspections in lieu of first and second stage VA inspections (Reference: See Section 14.03).

Note: VA acceptance of only a final VA or HUD inspection during construction is a privilege available only to builders who routinely provide good quality construction.  Builders who are required to obtain a full complement of inspections during construction will be notified by VA in writing.  VA, not lenders, will monitor builder compliance with the restriction.