Construction Warranty

In every case processed as proposed or under construction, the builder must provide the veteran home buyer with a one-year VA builder’s warranty on VA Form 26-1859, Warranty of Completion of Construction.

If only a final VA or HUD inspection is made during construction (Reference: See “Construction Inspections” above), a ten-year insured protection plan acceptable to HUD is also required (unless the builder provides evidence of local building authority inspections acceptable to VA in lieu of VA first and second stage inspections per Section 14.03).

Reference: See Section 13.06, “Construction Warranty”.

Determining the Type of Warranty

Use the table below to determine the type of warranty required.

When the property is appraised as…

…then…

existing construction

no warranty is required.

new construction

either:

·        1 year builder’s warranty is required, or

·        a 10 year insured protection plan is required.

proposed or under construction with a full complement of VA inspections

only a 1 year builder’s warranty is required.

proposed or under construction (with only a final VA inspection and local inspections are accepted in lieu of VA first and second stage inspections per Section 14.03)

only a 1 year builder’s warranty is   required.

proposed or under construction (with only a final VA inspection and local inspections are not accepted in lieu of VA first and second stage inspections per Section 14.03)

·        both a 1 year builder’s warranty, and

·        a 10 year insured protection plan are required.