VA Interest Rates VA loan Application Denver Realtor
4) How will the property be appraised? (The choices are: existing construction, new construction, or proposed or under construction. Definitions are in Section 10.05.)
4) Have you been made aware that any of the following affect the property, making it ineligible for VA appraisal? (Details are in Sections 10.06 and 10.07.)
a) A valid VA value determination already exists.
b) Bad physical condition.
c) Located in a condominium unlikely to be approved by VA or HUD prior to loan closing.
d) Less than fee simple ownership without VA approval.
e) A party of interest to the transaction is excluded from participation in the VA Loan Guaranty program for any reason.
f) Proposed, new or under construction and the builder is unable to obtain a VA builder identification number.
g) Located in a Special Flood Hazard Area (SFHA) and:
i) Flood insurance is not available, or
ii) Proposed, new or under construction and the elevation of the lowest floor is below the 100 year flood level.
h) Subject to regular flooding, whether or not it is in a SFHA.
i) Located in a Coastal Barrier Resources System area.
j) Proposed or under construction and in an airport Noise Zone 3.
k) Any part of the residence is within a transmission line easement for high-pressure gas, liquid petroleum or high voltage electricity.
l) Proposed, new or under construction and in an area susceptible to earthquakes or landslides or having a history of unstable soils and the builder cannot provide evidence that either the site is not affected or the problem has been adequately addressed in the engineering design.
4) Will the appraisal involve any of the following? (Special requirements or other pertinent information for each is in Section 10.05, unless otherwise noted.)
a) Common interest community (Sections 16-A.01 and 16-A.02)
b) Manufactured or modular home
c) Existing property to have major alterations or improvements prior to loan closing
d) Refinance only for interest rate reduction purposes
e) Partial release of the security for an existing loan
f) Conversion of a HUD value determination (Section 10.11)
g) Foreclosure on a defaulted loan
Continued on next page
FIGURE
2: VA Appraisal Request
Checklist,
Continued
4) If the property will be appraised as new construction:
a) Is the builder on the GSA list as debarred Government–wide (Section 10.07)?
b) Does the builder have a VA builder identification number, as required (Section 10.07)?
c) Is the construction fully completed except for “customer preference” items or items for which escrows are permitted, as required (Section 10.08)?
d) Does the builder agree to provide the veteran purchaser with either a one-year VA builder’s warranty or a ten-year insured protection plan, as required (Section 10.08)?
e) Will the veteran purchaser agree to make the required written acknowledgment (Section 10.08)?
4) If the property will be appraised as proposed or under construction:
a) Is the builder on the GSA list as debarred Government–wide (Section 10.07)?
b) Does the builder have a VA builder identification number, as required (Section 10.07)?
c) Did the builder provide the construction exhibits described in Section 10.10, as required?
d) Does the builder agree to have the property inspected by VA, as required (Section 10.09)?
e) Does the builder agree to provide the veteran purchaser with a one-year VA builder’s warranty (Section 10.09)?
f) If the property is eligible for only a final VA inspection (per Section 10.09) and local building authority inspections are not acceptable to VA in lieu of VA first and second stage inspections (per Section 14.03), does the builder agree to provide the veteran purchaser with both a one-year VA builder’s warranty and a ten-year insured protection plan?
4) Request the appraisal according to the instructions in Section 10.04 if:
a) You’ve determined how the property will be appraised (Item 1 above), and
b) The property appears to be eligible for VA appraisal (Item 2 above), and
c) You are aware of VA requirements if the appraisal involves any of the issues in Items 3, 4 and 5 above.
Note: When in doubt, look for guidance in the VA Lender’s Handbook, including its index. If still in doubt, contact the VA office with jurisdiction over the location of the property.