Introduction

Every notice of value (NOV) issued in conjunction with an appraisal review must include a list of any conditions and requirements that must be satisfied for the property to be eligible for VA loan guaranty.

Reference: See Section 13.05.

Table of NOV Conditions & Requirements

The Table of NOV Conditions and Requirements below

·   lists each condition and requirement shown on the standard LAPP NOV in the same order as shown on that NOV,

·   explains when each item is applicable,

·   explains what action is required to satisfy the condition or requirement, and

·   references any additional information about the item in this handbook.

Reference: See Chapter 13, Exhibit 1, LAPP Lender’s Notice of Value.

NOV Item

Instructions for Preparing the NOV

Energy Conservation Improvements

Check this item for every property appraised as “existing construction.”

This action allows lenders to increase the loan amount for buyers to make energy efficiency improvements to the property.

Note:  “Proposed” or “under construction” and “new construction” cases are not eligible for VA’s Energy Efficient Mortgage program.  For more on Energy efficient improvements, see Item 1 on the NOV or Section 7.03.