NOV instructions:

(VA Lender's Handbook, section 13.06)

Item 1. This program only applies to existing construction.

Item 2. Wood Destroying Insect Information should not be checked off for any property in Minnesota, North Dakota, South Dakota, or Wisconsin.

Item 5. If the new construction is served by a new well and new septic system, we will need both to be certified.

Item 8. The SAR should never check off the Flood Insurance requirement for new construction. Properties in a flood zone are only eligible for VA Loan Guaranty if the lowest living area is above the flood plane level.

Item 9. New construction should not occur in crash zones, but can occur in noise zones. If the property is in a noise zone this must be checked on the NOV.

Item 10. For new construction, the appraiser must list any items to be completed and they must be entered on the NOV as repairs. There are no plans and specifications on new construction so the NOV should never state to complete per plans and specifications. Generalized repairs such as "finish basement" are not acceptable. Repairs for new construction must be inspected by the appraiser or an assigned compliance inspector, not by the lender.

Item 12. Veterans Certifications. The reviewer must check off both 12 and either 12a or 12b depending on the type of case. The SAR must not check off all three items under 12.

For new construction covered by an approved, 10-year, insurance-backed protection plan, the veteran must complete the following certification:

I am aware that VA did not inspect this property during construction and that it does not qualify for VA assistance with construction complaints.

For new construction without a 10-year warranty, the veteran must complete the following certification:

I am aware that VA did not inspect this property during construction and that VA assistance with construction complaints will be limited to defects in equipment, material and workmanship reported in writing during the one-year VA builder's warranty period.

Any incomplete customer preference items or escrowable exterior items must be explicitly listed on the NOV. It is not sufficient to put a blanket statement to complete construction, and it is absolutely not acceptable to put down to complete per plans and specifications. The items listed for completion require a compliance inspection by an inspector or the appraiser. They cannot be certified by the lender.

Item 13. For 10-year warranty cases the SAR must check off item 13. This is referring to the final evidence of enrollment.

Item 14. The Energy Efficient Construction block is only checked for new construction. This is included in the builder's certification required on proposed and under construction cases appraised using plans and specifications.

Item 15. Any property less than a year old and not previously occupied requires a Lead/Water Distribution System certification by the builder.

Item 16. If there are any incomplete off-site improvements, this box must be checked.

Item 18. This is not for new construction.

Item 19. For properties that fall under the one-year builder's warranty, the SAR checks off item 19 requiring the builder's warranty form. This is not required for properties covered by an approved 10-year warranty.