Construction and Valuation
Gloria Pointer, Valuation Officer
e-mail or Telephone (713) 383-1855
VA APPRAISAL GUIDELINES 05-10
WHAT DOES THE VA CONSTRUCTION AND VALUATION SECTION DO?
The VA Construction & Valuation Section, commonly referred to as the "Appraisal" Section, is responsible for ensuring that any property that is security for a VA guaranteed home loan is appraised at fair market value and that the property complies with VA Minimum Property Requirements.
The Construction & Valuation section also administers the Specially Adapted Housing program.
WHO IS RESPONSIBLE FOR ORDERING THE VA APPRAISAL?
Once the veteran has applied to a lender for the VA home loan, the lender contacts VA via a website address and obtains a VA case number and the name/address of the assigned VA fee-basis appraiser. The VA website assigns a fee-basis appraiser to view the property being purchased by the veteran. The lender then contacts the assigned appraiser and provides information necessary to complete the assignment.
WHAT HAPPENS NEXT?
The appraiser schedules an appointment to view the property. Once the appraiser views the property, he or she then compares the property to similar properties that have sold recently and completes the appraisal report. The completed report is then sent directly to either the LAPP lender or VA.
WHAT IS LAPP?
LAPP is the Lender Appraisal Processing Program. The majority of VA loans are processed by lenders that have this authority which allows the lender to review the appraisal. It can save the lender time in processing the veteran's loan.
DOES THE APPRAISER INSPECT FOR ALL DEFECTS?
Although the appraiser views the property and may require repairs, he or she is not a home inspector that would test the mechanical systems, go on the roof, test the structure, etc. VA recommends the veteran consider hiring a home inspector if he or she has concerns about the property condition. Although VA may guarantee the loan, the VA appraisal will not guarantee the condition of the property.
WHO DO YOU CONTACT FOR ADDITIONAL INFORMATION OR QUESTIONS?
The VA Loan Guaranty national website at homeloans.va.gov provides information on all aspects of the VA home loan program including the contact information for all VA offices. If you have a question about an appraisal issue for a property in our area, please call us toll free at
(888) 232-2571 extension 1736 or e-mail to:
if the VA loan number starts with 49-49-, use CV49.VBAHOU@VA.GOV
if the VA loan number starts with 62-62-, use CV62.VBAHOU@VA.GOV
if the VA loan number starts with 21-21-, or 50-50-, or 51-51-, use CV551.VBAHOU@VA.GOV
What an appraisal is -- An appraisal is how the value of a property is determined. The appraisal is used to determine the maximum loan amount of the guaranteed mortgage. As part of the appraisal process, the appraiser looks for conditions that can affect the habitability and value of the property.
What an appraisal is not -- An appraisal is not an inspection of the property. VA guarantees mortgages, not the condition of the property. The appraiser looks for violations of the VA Minimum Property Requirements; the appraiser is not an expert in heating or cooling systems, plumbing systems, electrical systems, roofing systems. If you are concerned about the physical condition of the property and systems, we recommend that you hire a private inspector to inspect the property.
Minimum Property Requirements -- The VA Minimum Property Requirements are very basic items that can affect the value of a property. They are minimal requirements and are not a substitute for private inspections. Their main concern is the safety, sanitation and structural soundness of the property.