Receipt of Inspection Reports

If construction is acceptable and there are no deviations or substitutions, the compliance inspector will submit the inspection report (VA Form 26-1839) in the following manner:

·        If the lender is known:

-   Provide the lender with a copy,

-   Provide the builder with a copy, and

-   Keep a copy for his/her file.

·        If the lender is not known:

-   Provide the builder with two copies, one of which the builder will forward to the lender when known, and

·        Keep a copy for his/her file.

Use of Inspection Reports

Considering the requirements to obtain VA loan guaranty, before the loan is closed, the lender should ensure that

·   all VA value notice requirements regarding inspections are met

·   any deviations and/or noncompliance items listed on the third-stage inspection report are resolved to VA’s satisfaction

·   any appliances or floor coverings installed under Section 14.05  are the same as those described in Section 1 of the third-stage inspection report, and

the third stage inspection report includes all of the information required for a final inspection.

Retention of Inspection Reports

The lender must retain all inspection-related material in their loan origination file.