What Are Minimum Property Requirements?
04-04-2022 • MHS Lending
VA Home Loans are powerful loans available exclusively for those who have served or are actively serving in the US military. Because these loans are backed by the Department of Veterans Affairs, the government has established Minimum Property Requirements (MPRs) to protect the interests of Veterans, lenders, servicers, and the VA. Properties must meet these requirements prior to guarantee of the loan by the VA. MPRs are designed to ensure the property is a safe home and a sound investment for the veteran or military family.
Who checks for MPR’s?
All properties that are purchased using a VA Loan are required to have been appraised by a VA-assigned and certified appraiser. Once your lender orders the appraisal, the appraiser will contact those living in the property or the selling agent to schedule a time for a walk through. They will then conduct a full walk through and assessment of the property and must note any readily apparent repairs that the property needs and should recommend repairs for any conditions deemed to fail MPR’s.
What are some of the main MPR’s?
The goal of the VA is to ensure that the home is move-in ready and safe long into the future for the new homeowner. If any property fails to prove that it is a safe, sound, and sanitary home, it may be subject to denial for VA financing. Homes that are approved for a VA Loan must have the following MPR’s:
Functional heating, cooling, and electrical systems
Roofing that prevents the entrance of moisture and is expected to last into the foreseeable future
A sewage system that is adequate in size
A safe method for disposing of sewage
No evidence of any lead-based paint
A continuous supply of safe and potable water
No evidence of wood destroying insect infestation, fungus growth, or dry rot
Structurally sound and void of any defective conditions including poor workmanship, excessive dampness, and decay
What constitutes “safe, sound, and sanitary”?
Overall, the VA requires that the property must be safe, structurally sound, and sanitary and a VA-approved appraiser will help determine whether it is. After a thorough inspection of the home, the appraiser will conclude whether the home meets these three criteria and ensure that the property does not have any safety hazards and is a good investment for the home buyer, the lender, and the VA. Because the requirements are so specific, oftentimes VA-approved appraisers are more stringent than other appraisers, but for good reason.
Any conditions which impair the safety, sanitation, or structural soundness of the house will cause the property to be unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. These extra requirements rarely affect a prospective home buyer and his or her ability to buy a house and ultimately protect the home buyer from costly damages related to an unsafe investment.
VA Loans that are approved come with peace of mind
By choosing a property that meets the VA’s minimum property requirements, you can feel confident that you are saving time and money on your home. Since the restrictions are strict, you can be rest assured that all red flags about the home you are buying have been identified and no stone has been left unturned. Our team at MHS Lending are experts in working with VA Loans and will help you navigate the experience of working with VA-approved lenders and MPR’s. If you’re ready to start your home buying journey today and want to learn more about the VA Loan and all the benefits that come with it, give us a call at 619-728-7620.