# VA appraisal requirements: property standards, timing and low values Source: https://nobullshitloans.com/veterans/va-appraisal/ By Tyler Rood, Loan Officer, NMLS ID # 2064776, Edge Home Finance, LLC (NMLS ID # 891464). Updated 2026-11-09. ## The short answer A VA appraisal sets the home's reasonable value on a Notice of Value and checks that it meets VA's minimum property requirements for a safe, sound home. Your loan can't exceed the lower of price or value, so if it comes in $10,000 short, the seller cuts the price, you cover the gap in cash, or you split it. You can challenge a low value through your lender; it's strongest with better comparable sales and one number they support. The VA appraisal is the step of a VA purchase that worries buyers and listing agents. Will the house pass, how long will it take, and what happens if the number comes in under the contract price? Here are the VA appraisal requirements in plain English, the timing I see in my files, and the steps I take when the value comes in low. ## VA appraisal requirements: the two jobs of a VA appraisal On a VA purchase, the VA appraisal does two jobs at once. 1. **Value.** The appraiser compares recent sales of similar homes nearby and lands on the home's reasonable value. That number goes on a Notice of Value (NOV), and it caps your loan: a VA loan can't be more than the lower of the price or the value. 2. **Condition.** The appraiser checks the house against VA's minimum property requirements (MPRs). If something doesn't meet them, the report can come back with repairs required. The lender orders the appraisal through VA's system, and VA assigns the appraiser. You don't pick the appraiser, your agent doesn't, and I don't. By design I can't call the appraiser to push for a number, and that independence is what makes the value mean something. ## Minimum property requirements, in plain English VA's minimum property requirements are about whether the home is safe, structurally sound and sanitary to live in. Think working systems, a sound structure and no hazards, not paint colors or carpet. In my view VA's property standards are the strictest of any loan program, and that's on purpose. A veteran shouldn't close on a house right after a move or a deployment and find a leaking bathroom. **Which repairs does a VA appraisal require?** If the appraiser finds a problem the requirements cover, the value comes back "subject to" that repair instead of "as is." The Notice of Value lists the repairs, and VA requires every condition on it to be satisfied before it guarantees the loan, so the lender will tell you how each repair has to be handled and documented. On every report I check five things: the contract price, the appraised value, the equity (value minus price), whether it's "as is" or "subject to" repairs, and the appraiser's details. On my VA files I also order the termite inspection at the start, so a surprise there doesn't land the week of closing. The appraisal is not your home inspection. The appraisal protects the loan; the inspection protects you. My page on [how appraisals work](https://nobullshitloans.com/buy/appraisal/) covers the difference. ## How long does a VA appraisal take? The appraisal is usually the slowest piece of a VA closing, and it is what sets the pace. A VA closing has no fixed number of days. In my files, 30 or 45 days from contract both work, my fastest VA close was 12 days, and past about 60 days sellers start to get antsy, new construction aside. Two things keep it moving. The appraisal gets ordered as soon as the contract and its addenda are in the file, well before the contract's appraisal deadline. And everything else (documents, title, the termite inspection) gets done while the appraiser works, so the file is ready the day the value comes back. The full sequence is on my page about [the steps of buying a house](https://nobullshitloans.com/buy/steps/). After the report comes in, the Notice of Value is issued, the file goes back to the underwriter, and the last conditions come off your conditional approval. From there it's scheduling and signatures. **From contract to closing on a VA purchase** The appraisal sets the pace, so it gets ordered first and everything else gets done while the appraiser works. 1. Contract: Appraisal ordered. As soon as the contract and its addenda are in the file, well before the contract's appraisal deadline. 2. Meanwhile: Everything else gets done. Documents, title and the termite inspection, so the file is ready the day the value comes back. 3. Report in: Notice of Value issued. The file goes back to the underwriter, and the last conditions come off your conditional approval. 4. Closing: Scheduling and signatures. A VA closing has no fixed number of days. In my files 30 or 45 days from contract both work, my fastest VA close was 12 days, and past about 60 days sellers start to get antsy, new construction aside. ## The Notice of Value: what the number does to your loan The NOV is the number everything else hangs on. Your loan is based on the lower of the price or the value. VA's 4% cap on seller concessions is tied to it too: VA's current page measures the cap against the home's reasonable value, not the price. Credits for your normal closing costs are not capped; the rest of the concession rules are on my page about [how VA loans work](https://nobullshitloans.com/veterans/va-loan/). A value above the price is good news, with limits. When a VA value came in about $7,000 over a $350,000 contract on one of my files, I called it nine months of free appreciation. It's equity on paper: you don't put less down and you don't get cash back. A value below the price is where the real decisions start. ## VA appraisal came in low: your options A low value doesn't change your contract price by itself. It changes what VA will lend against, and that sends you and the seller back to the table. **Worked example: A $390,000 contract, a $380,000 Notice of Value** - Contract price: $390,000 - minus VA reasonable value (NOV): $380,000 - equals: Gap: $10,000 Note: Your VA loan is capped at $380,000 before the funding fee, no matter what the price ends up being. _Hypothetical, rounded._ **What happens next on a $10,000 low value** The VA loan stays at $380,000 in every case. What changes is the price and the cash you bring above the value. | | Seller cuts the price to the value | You and the seller split the gap | Seller won't move and you still want it | |---|---|---|---| | New price | $380,000 | $385,000 | $390,000 | | VA loan before the funding fee | $380,000 | $380,000 | $380,000 | | Cash you bring above the value | $0 | $5,000 | $10,000 | _Hypothetical, rounded._ Two things about that table. Cash you bring above the value does not count as a down payment or equity in the loan math; the bank counts none of it. And your closing costs are separate from the gap. On a VA purchase the deal is structured on the appraisal, so my first move is the simplest: ask the seller to meet the value, with the report as the proof. "I'm not buying it for $390,000 because it's only worth $380,000. I'll buy it for $380,000." You can also walk away. VA requires a clause in the sales contract on every VA-guaranteed loan, often called the escape or amendatory clause: if the price is more than VA's reasonable value, you can cancel without losing your earnest money, or go forward anyway by choice. VA notes that you get the earnest money back, not what you spent on the inspection or the appraisal. Your agent knows the contract side; I'll show you the cash side of each option the same day the value lands. How offers and credits fit together is on my page about [making an offer](https://nobullshitloans.com/buy/making-an-offer/). ## VA Tidewater: the heads-up before the value is final VA has a step, usually called Tidewater, for when the appraiser expects the value to come in below the contract price. Before the report is final, the appraiser lets the lender know, and the lender gets a short window to send in more sales data or details the appraiser may not have had. That window is the cheapest place to fix a value, which is why I talk to the buyer's agent about comparable sales before the appraisal is ordered, not after. If a Tidewater notice comes, the agent pulls the sales and we send them through the lender. The appraiser can't discuss the expected value during that window, so nobody calls the appraiser to argue the number. ## VA reconsideration of value: how I build one If the final value is still low, VA has a reconsideration of value (ROV) process to challenge it, and it runs through your lender to VA. Here is how I put one together. 1. Read the report and find the specific problem: sales too far away, a different kind of home (a resale compared with new construction), missed upgrades, or adjustments that look too big. 2. Have the buyer's agent pull better comparable sales: closed, nearby, similar size, age and style, with the listing details and photos. 3. Write a short letter: what the report missed, which sales prove it, and one specific value those sales support. 4. The veteran signs it, and the lender submits it. 5. Keep the deal moving while you wait: know your contract dates and have the seller conversation ready. Ask for a number, and make it the number your evidence supports. A vague "please reconsider" is weak, and asking for more than the sales and documented costs back up undercuts the whole request. On one of my files I could have argued a higher figure; I went with the number the comparable-sales report supported instead. **My take** Build the reconsideration like it's the only one you get. One clean letter, the best few sales, one number. Then plan as if it fails, because a deal that only works if the value moves is a deal you should be renegotiating at the same time. I won't quote you odds on an ROV. It can come back higher or unchanged, and a good request still needs a plan B. ## VA appraisals on new construction On a VA one-time-close build, the appraisal is tied to the property address. Change lots and it's a new appraisal. Low values on builds often come from an incomplete contract package, so the builder's contract has to carry the whole cost: land, construction, financing costs and closing costs. If the value still won't support the price, my rule is that the builder credit comes out and you bring the difference. A reconsideration is the weak fallback here; fixing the contract is the strong one. The rest is on my page about [construction loans](https://nobullshitloans.com/loans/construction/). When the report lands, start with those five things on the first page. If the value is short, run the cash for every option before anyone tells the seller "that sounds great." ## Frequently asked questions ### Who orders the VA appraisal, and can my agent or loan officer pick the appraiser? The lender orders it through VA's system, and VA assigns the appraiser. Nobody on the deal picks the appraiser, and I can't call one to ask for a number. That separation is on purpose, and it protects you. ### Is a VA appraisal the same as a home inspection? No. The appraisal checks value and whether the home meets VA's standards for the loan. A home inspection checks the house for you, top to bottom, and you should still get one. ### My VA appraisal came in higher than my price. Do I get anything for it? You get equity on paper, and that's it. Your loan is still based on the lower of the price and the value, so you don't put less down or get cash back. It does give you a cushion if you sell, and more value to borrow against later. ### Does a low VA appraisal change how much the seller can pay toward my costs? It can. VA doesn't limit seller credits for your normal closing costs, but it caps concessions, such as the seller paying your funding fee or your debts, at 4%. VA's current page measures that 4% against the home's reasonable value, so a lower value can mean a slightly lower cap. ### How many times can I ask for a VA reconsideration of value? Treat it as one good shot. Conventional and FHA loans allow one borrower request per appraisal, so I build a VA request as if it is the only one we get. That means the best comparable sales and the right number the first time. ## Sources - [VA Home Loan Guaranty Buyer's Guide (April 2022), appraisal, Notice of Value and escape clause](https://www.benefits.va.gov/homeloans/documents/docs/VA_Buyers_Guide.pdf) - [VA Loan Guaranty Conference 2023, SAR training slides (minimum property requirements and Tidewater)](https://www.benefits.va.gov/HOMELOANS/documents/conf/2023-sar-training.pdf) - [VA Loan Guaranty Service, quick reference for real estate professionals](https://www.benefits.va.gov/homeloans/documents/docs/lgy-quick-reference-va-home-loan-toolkit.pdf) - [Department of Veterans Affairs, VA funding fee and loan closing costs (seller concessions)](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) ## Disclosures Individual Originator: Tyler Rood, Loan Officer, NMLS ID # 2064776 (www.nmlsconsumeraccess.org). Licensed in NC, PA, TX and VA. Edge Home Finance, LLC | NMLS ID # 891464 | www.nmlsconsumeraccess.org. Licensed in all U.S. states & D.C., EXCEPT New York. Edge Home Finance, LLC is a mortgage broker, not a direct lender or creditor. Virginia Broker License MC-7006. North Carolina Mortgage Broker License B-201539. Pennsylvania Mortgage Broker License 81041. Texas: Mortgage Company License, Department of Savings and Mortgage Lending. Numbers on this page are illustrations, not offers. Any rate shown on this site is an example. Rates may change or may not be available at the time of loan commitment or lock-in. Edge Home Finance, LLC is a private mortgage broker and is not affiliated with, endorsed by, or acting on behalf of or at the direction of the U.S. Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD), or any other government agency. We do business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.