Short answer: A VA appraisal does two jobs. It sets the home’s reasonable value, and it checks VA’s Minimum Property Requirements (MPRs), meaning the home must be safe, structurally sound and sanitary. It isn’t a home inspection. If the value looks like it will come in below the price, the Tidewater process gives your side two business days to send sales data. After the Notice of Value, you can ask for a Reconsideration of Value.
Worried about the VA appraisal on your home? Call:
Hyde Funding · 8996 Miramar Rd., Suite 250, San Diego · NMLS #391380 · Lending since 2015 · Lending in all states
A VA-assigned appraiser estimates the home’s market value and notes whether it meets VA’s Minimum Property Requirements. VA then issues a Notice of Value (NOV), which is generally valid for six months. On a purchase, VA.gov explains that you can buy with no down payment as long as the sales price isn’t higher than the appraised value. If the appraisal comes in low, your loan amount is capped at the appraised value.
No. VA’s handbook says plainly that an appraisal isn’t a home inspection. The appraiser looks for conditions that violate the MPRs. They don’t test every system or open walls. A separate home inspection is your choice and is often worth it, especially on older San Diego homes.
MPRs are the conditions a home must meet before VA will guarantee the loan. The core standard is that the property is safe, structurally sound and sanitary. Items that commonly come up:
| Area | What VA looks for |
|---|---|
| Roof | Keeps moisture out and has reasonable future utility |
| Heating | Can keep areas with plumbing at 50°F or more |
| Paint (homes built before 1978) | Defective (chipping, peeling) paint must be corrected because of lead-based paint rules |
| Wood-destroying insects | A termite inspection is required in areas VA’s map rates “very heavy” or “moderate to heavy,” and wherever damage is apparent |
| Defective conditions | Termite damage, leaks, decay or excessive dampness must be corrected |
| Access | Vehicle access from a public or private street with an all-weather surface |
No. VA’s handbook tells appraisers not to require cosmetic repairs. Worn carpet, dated finishes and minor imperfections aren’t MPR items. Required repairs show up as conditions (“subject to”) on the appraisal, and they must be completed before the loan closes. Who pays for them is a negotiation between buyer and seller.
Tidewater is an early warning. If the appraiser sees, before finishing the report, that the value is likely to come in below the sales price, they notify the person who requested the appraisal (usually the lender). Your side then has two business days to send market data the appraiser may not have considered. That means recent comparable sales with the address, sale price, date and size. The process exists only to share market data, not to pressure the appraiser.
If you think the final value is wrong after the NOV is issued, you can ask for a Reconsideration of Value in writing, usually through your lender. Market data isn’t required but is strongly encouraged. Under VA’s handbook procedures, VA staff review the request within five business days. If a field review is needed, it can take up to 20 business days. If the value increases, VA issues an amended NOV. Procedures can change, so we follow the current VA process for your file.
A VA cash-out refinance needs a VA appraisal, and the value sets how much cash is available. Hyde Funding can go up to 90% of value, sometimes higher. For lowering the rate on an existing VA loan, see the VA IRRRL.
Appraisal concerns, credit questions or a tight timeline? Call and we’ll walk through your file. We review every credit profile and can refer you to our third-party credit repair partner if that helps.
Questions about your VA loan? Call me directly:
Hyde Funding · 8996 Miramar Rd., Suite 250, San Diego · NMLS #391380 · Lending since 2015 · Lending in all states
No. The VA appraisal sets value and checks Minimum Property Requirements, meaning the home is safe, structurally sound and sanitary. VA states it is not a home inspection, so a separate inspection is still a good idea.
The loan is capped at the appraised value. You can renegotiate the price, pay the difference in cash, or request a Reconsideration of Value with market data through your lender.
If the appraiser expects the value to come in below the sales price, they notify the requester before finishing the report and allow two business days to submit comparable sales data for consideration.
Under VA handbook procedures, VA staff review an ROV request within five business days, and a field review, if needed, can take up to 20 business days.
No. VA tells appraisers not to require cosmetic repairs. Required repairs relate to safety, soundness and sanitation, such as defective paint on pre-1978 homes, roof leaks or termite damage.
A VA Notice of Value is generally valid for six months.
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Hyde Funding is a mortgage lender and is not affiliated with the U.S. Department of Veterans Affairs or any government agency. Examples are illustrative only and are not quotes or commitments to lend. Terms depend on credit, income, property and lender approval. Tax information is general; consult a tax advisor or the County Assessor about your situation.