Introduction
Hello readers! If you are in the process of applying for a VA loan or are simply curious about the inspection requirements for VA loans, you have come to the right place. VA loans are a great financial benefit for military veterans and active-duty members, but they come with certain requirements, including inspections. In this article, we will discuss everything you need to know about inspection requirements for VA loans.
Before we dive into the specifics, let’s briefly discuss what a VA loan is. A VA loan is a type of mortgage loan that is guaranteed by the United States Department of Veterans Affairs (VA). It is designed to help military veterans and active-duty members purchase a home, refinance an existing home, or make home improvements. The loan is issued by private lenders, such as banks and mortgage companies, and the VA guarantees a portion of the loan.
If you are interested in applying for a VA loan, it’s important to know that there are certain requirements that need to be met. One of these requirements is an inspection of the property. Keep reading to find out more about the inspection requirements for VA loans.
The Inspection Requirements for VA Loans
What Is an Inspection?
Let’s start with the basics. What is an inspection? An inspection is an assessment of the condition of a property. It is conducted by a licensed home inspector who is trained to identify any problems or defects with the property. The inspector will look at the structural, mechanical, and electrical systems of the property to ensure that they are in good condition and functioning properly.
Why Are Inspections Required for VA Loans?
The purpose of the inspection is to ensure that the property meets the VA’s minimum property requirements (MPRs). These requirements are in place to protect the veteran from purchasing a property that is in poor condition and that could be difficult to resell in the future. The inspection is also designed to protect the lender, as they want to ensure that the property has a good resale value in case the borrower defaults on the loan.
When Is an Inspection Required?
An inspection is required for all VA loans, whether you are purchasing a new home or refinancing an existing home. The inspection must be conducted by a licensed home inspector who is approved by the VA. The cost of the inspection is typically paid for by the borrower, but it can be included in the loan amount.
What Is Checked During an Inspection?
During an inspection, the home inspector will check the following:
Item Checked |
Description |
|---|---|
Roof |
The inspector will check the roof for any leaks, damage, or wear and tear. |
Foundation |
The inspector will check the foundation for any cracks or damage. |
Electrical System |
The inspector will check the electrical system to ensure that it is safe and functioning properly. |
Plumbing System |
The inspector will check the plumbing system to ensure that there are no leaks or other issues. |
HVAC System |
The inspector will check the heating, ventilation, and air conditioning (HVAC) system to ensure that it is functioning properly. |
Windows and Doors |
The inspector will check the windows and doors for any damage or issues. |
Structural Elements |
The inspector will check the structural elements of the property, such as the walls, floors, and ceilings, for any damage or issues. |
What Happens If the Property Does Not Meet the MPRs?
If the property does not meet the VA’s MPRs, the borrower has a few options. They can either negotiate with the seller to have the necessary repairs made, pay for the repairs themselves, or walk away from the purchase. If the borrower chooses to have the repairs made, they will need to have another inspection to ensure that the repairs were done properly.
What Is a Pest Inspection?
In addition to the standard inspection, a pest inspection is also required for VA loans. This inspection is designed to identify any pest infestations, such as termites or rodents, that could damage the property. The cost of the pest inspection is typically paid for by the seller, but it can be negotiated as part of the sale.
What Is a Well and Septic Inspection?
If the property has a well or septic system, a separate inspection is required. This inspection is designed to ensure that the well and septic system are in good condition and functioning properly. The cost of this inspection is typically paid for by the borrower.
Frequently Asked Questions
1. Is an inspection required for all VA loans?
Yes, an inspection is required for all VA loans.
2. Who conducts the inspection?
The inspection is conducted by a licensed home inspector who is approved by the VA.
3. What is a pest inspection?
A pest inspection is designed to identify any pest infestations, such as termites or rodents, that could damage the property.
4. What is a well and septic inspection?
A well and septic inspection is required if the property has a well or septic system. It is designed to ensure that the well and septic system are in good condition and functioning properly.
5. Who pays for the inspection?
The cost of the inspection is typically paid for by the borrower, but it can be included in the loan amount.
6. What happens if the property does not meet the MPRs?
If the property does not meet the VA’s MPRs, the borrower has a few options. They can either negotiate with the seller to have the necessary repairs made, pay for the repairs themselves, or walk away from the purchase.
7. What is included in the standard inspection?
The standard inspection includes a check of the roof, foundation, electrical system, plumbing system, HVAC system, windows and doors, and structural elements of the property.
8. How long does an inspection take?
The length of the inspection can vary depending on the size and condition of the property. However, most inspections take between 2-4 hours.
9. How often do I need to have an inspection done?
An inspection is required for each new VA loan or when refinancing an existing VA loan. If you are purchasing a new home, you will need to have an inspection done before closing.
10. Can I choose my own inspector?
Yes, you can choose your own inspector as long as they are licensed and approved by the VA.
11. What if the seller refuses to make the necessary repairs?
If the seller refuses to make the necessary repairs, the borrower can choose to pay for the repairs themselves, negotiate a lower purchase price, or walk away from the purchase.
12. How long does it take to get the results of the inspection?
The inspector will typically provide a report within 24-48 hours of the inspection.
13. Are there any exceptions to the inspection requirement?
There are no exceptions to the inspection requirement for VA loans.
Conclusion
In conclusion, an inspection is a necessary requirement for VA loans. It is designed to ensure that the property meets the VA’s minimum property requirements and to protect both the borrower and lender. If you are in the process of applying for a VA loan, make sure to budget for the cost of the inspection and choose a licensed and approved home inspector. By doing so, you can ensure that your VA loan experience is a positive one.
Thank you for taking the time to read this article. We hope that it has been informative and helpful. If you have any further questions or concerns about the inspection requirements for VA loans, please do not hesitate to reach out to a VA-approved lender or home inspector.
Closing/Disclaimer
The information in this article is for educational purposes only and should not be considered legal or financial advice. VA loan requirements and regulations are subject to change. It is important to consult with a licensed and approved VA lender or home inspector for the most up-to-date information regarding VA loans and their inspection requirements.