Purpose

The purpose of VA inspections during construction is to ensure that all onsite and offsite improvements have been acceptably completed according to

·   the construction exhibits on which the VA value estimate is based, and

·   VA Minimum Property Requirements (MPRs) per Chapter 12.

Consequences of Inspections

A lender may close a loan based on a “clear” final inspection report.

Deviations from the construction exhibits may necessitate revision of the VA value estimate, if appropriate.

Properties that fail to meet VA MPRs will not be acceptable as the security for a VA loan.

Determining the Type of Inspection

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

When the property is appraised as ...

Then ...

proposed or under construction with no insured ten year protection plan

·   either a full complement of inspections is required, or

·   a final (third stage) inspection is required, only if local building authority inspections are acceptable in lieu of VA first and second stage inspections.

proposed or under construction with an insured ten year protection plan

only a final (third stage) inspection is required.