You and your client found the home of their dreams in the neighborhood they were hoping for, and now you’re ready to make an offer. But before the deal moves forward, there’s one more step to understand: the VA appraisal. Even a home that looks move-in ready can raise questions under VA loan property requirements, including the Department of Veterans Affairs’ Minimum Property Requirements (MPRs), making it important to know what to expect before closing.
Mutual of Omaha Mortgage understands VA loans and is here to help you navigate the process, including the property requirements that can affect a transaction. Here’s what every real estate agent should know about VA appraisals and how to prepare for potential hurdles along the way.
What Are VA Loan Property Requirements?
VA Minimum Property Requirements are standards a property must meet before VA can guarantee the loan. They address issues that could affect the property’s safety, structural integrity, sanitation or overall suitability as a residence.
The appraiser is responsible for identifying readily apparent conditions that do not appear to meet the MPRs. The appraiser can recommend repairs when necessary, but the appraisal is not intended to provide the detailed assessment that comes from a professional home inspection.
In 2026, the VA updated its appraisal process regarding Minimum Property Requirements (MPRs)—the standards a property must meet to be eligible for a VA-guaranteed home loan—to reduce delays, cut outdated rules and help Veteran homebuyers move faster in a competitive housing market.
For agents, the practical takeaway is simple: A property does not have to be perfect to qualify for VA financing, but significant property-condition issues may need to be addressed before closing.
VA Appraisal vs. Home Inspection
One of the most common misconceptions about VA loans is that the VA appraisal replaces a home inspection. It does not.
A VA appraisal serves two primary purposes: establishing an opinion of the property’s market value and determining whether the property meets applicable VA property requirements. A home inspection is a separate evaluation designed to give the buyer a more comprehensive understanding of the home’s condition.
The VA specifically recommends that buyers obtain a home inspection. The agency also states that an appraisal is not a home inspection or a guarantee of value.
Agents can help set expectations early by encouraging buyers to complete both.
What Property Conditions Can Create Problems?
Common concerns can include conditions that affect safety, structural soundness or sanitation. Depending on the property, an appraiser may identify issues involving roofing, electrical systems, plumbing, heating, water intrusion, structural concerns or other readily observable deficiencies.
That does not mean every older home or fixer-upper is automatically ineligible. The key question is whether the property meets the applicable requirements and whether any required repairs can be completed.
Agents should also avoid assuming that a condition that appears minor will automatically be ignored. If something is readily apparent and affects an MPR, it can become an appraisal issue.
At the same time, VA guidance distinguishes between necessary repairs and cosmetic conditions. The current handbook states that appraisers should not recommend repairs for cosmetic items, minor deferred maintenance or normal wear and tear that are inconsequential to the property’s overall condition.
What Changed in 2026?
As mentioned earlier, the VA updated Chapter 12 of its Lenders Handbook, with changes effective for VA appraisals ordered on or after May 1, 2026. The update streamlined several MPR provisions that VA determined were unnecessary.
Among the changes were revisions involving detached improvements, non-vented heaters, lead-based paint requirements and the removal of the standalone radon gas topic. The update did not eliminate VA Minimum Property Requirements overall. Properties still must meet applicable safety, structural and sanitary standards.
For agents, that means older information about VA appraisals may no longer accurately describe the current requirements. If a transaction raises a property-condition question, it is important to rely on current VA guidance and the lender’s direction rather than assumptions based on previous transactions.
What Is a Reconsideration of Value?
Property condition is only one part of the VA appraisal process. Value can also become a concern.
If the appraisal comes in below the contract price, the buyer and agent may have options. VA identifies a Reconsideration of Value, or ROV, as one possible path. The real estate agent can provide the lender with relevant sales data supporting a higher value, which the lender can then ask the appraiser to consider. Other options may include renegotiating the sales price or paying the difference, depending on the circumstances.
An ROV is not a guarantee that the value will change, but providing relevant, well-supported information can give the appraiser additional data to consider.
How Agents Can Help
A little preparation can go a long way with a VA transaction.
Before an offer is written, agents can:
- Encourage buyers to obtain a professional home inspection.
- Be familiar with the property’s age and apparent condition.
- Flag obvious repair concerns early.
- Avoid promising that a property will or will not qualify for VA financing.
- Work closely with the buyer’s lender when appraisal or property-condition questions arise.
- Provide relevant comparable sales information promptly if an ROV becomes appropriate.
- Set realistic expectations with sellers about potential repairs.
Help Your VA Buyers Get to the Closing Table
A VA appraisal doesn’t have to be a source of stress. When you know what to look for, understand the difference between an appraisal and a home inspection, and have a plan for addressing potential concerns, you can help your clients feel more confident throughout the process.
And you don’t have to figure it all out on your own.
Have a question about a property’s condition, a VA appraisal or what happens next?
For questions about VA financing or a specific property, buyers and agents should work with an experienced VA lender who can evaluate the circumstances of the individual transaction.
Connect with a Mutual of Omaha Mortgage loan professional. We’re here to help you work through the details and keep your buyers moving toward their next home.
VA financing does not require a property to be flawless. It does require the property to meet applicable standards. Understanding VA loans can help agents guide their clients with greater confidence and reduce avoidable surprises along the way.
