The VA appraisal does two jobs at once: it sets the value and it certifies the home meets minimum property requirements. Most deals that stall here stall on a handful of predictable items — here is the whole picture.
Two tests in one visit
A conventional appraisal answers one question: what is the home worth. The VA appraisal answers that plus a second: does the property meet the VA's minimum property requirements — safe, sound, and sanitary.
The value question works like any appraisal: comparable sales drive the number. The MPR question is a condition review, and it is where VA appraisals differ in practice. Either test can hold up a closing independently of the other.
The minimum property requirements that actually flag
The MPR list is long, but the same handful of items cause most delays: peeling paint on homes built before 1978 (a lead-paint hazard), roof issues, missing handrails on stairs, non-functioning utilities or HVAC, broken windows, evidence of active roof leaks or water intrusion, and wood-destroying insect activity where inspection is required.
The standard is habitability, not perfection. Worn carpet, dated kitchens, and cosmetic wear are not MPR issues. The question is whether a reasonable buyer could live in the home safely on day one.
Utilities must be on for the appraisal. A vacant foreclosure with disconnected water and power will be flagged until they are restored.
When repairs are required, who pays
If the appraisal is issued subject to repairs, those repairs must be completed and re-inspected before the loan can close. The VA does not dictate who pays — that is a negotiation between buyer and seller, like any other contract term.
Sellers are not required to pay for VA repairs; that is a persistent myth. In a competitive market a seller may refuse, and the buyer's options are to negotiate, pay for work directly, or walk away using the appraisal contingency.
When the value comes in low: Tidewater and the ROV
VA appraisers follow a process called Tidewater: before issuing a value below the contract price, the appraiser notifies the lender and invites additional comparable sales for consideration within 48 hours. It is a meaningful protection — the buyer's agent gets a chance to supply better comps before the number is set.
If the value still lands below the contract price, the loan is capped at the appraised value. The options are a price reduction, the buyer covering the gap in cash, a formal Reconsideration of Value with new comparable evidence, or canceling under the escape clause.
The VA's escape clause — the amendatory clause in every VA purchase contract — lets the buyer walk away with the earnest money when the value does not support the price. It cannot be waived.
Timeline and cost expectations
The VA sets appraisal timeliness standards by region, commonly in the range of a week to two weeks from order. The appraisal fee is also set by the VA and varies by state and property type — multi-unit and manufactured homes cost more.
A VA appraisal sticks with the property for a period, not with the buyer. If one buyer's deal collapses, a subsequent VA buyer may inherit the existing appraisal, which cuts both ways depending on what it said.
What it is not
The VA appraisal is not a home inspection, and the VA is explicit that buyers should order one independently. The appraiser checks the roof for function; the inspector tells you it has five years left. Both matter, and only one of them works for you alone.
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Jonathan Mullins
Mortgage Loan Officer · Army Veteran
Jonathan Mullins is an Army Veteran and Mortgage Loan Officer at Military Mortgage, specializing in VA home loans for Veterans, active-duty service members, and military families. He writes this learning center to make VA loan rules, entitlement, and the home-buying process easier to understand.
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