VA Appraisals: A Reader Question
A reader asks, “I purchased my house in August 0f 2013, only one year 1 month ago. And it was inspected by one VA inspector, it pass the inspection, now I have problem with my roof. It might need a new roof and my insurance is…giving me the run around, the house had a 1 year warranty by the seller when I call him he send a rufer and tell me to go with my insurance. That was in August of 2014, and now neither of them want to take responsibility…help me, please I know this loan is warranty by VA. Please help me, I’m not getting any Benefits from the Army, this is the only thing I got after serving 6 years in the U.S. National Guard.”
The Department of Veterans Affairs official site (www.VA.gov) stresses that a VA appraisal is NOT a home inspection and that borrowers should always pay for a separate home inspection regardless of what the VA appraisal process results are.
VA.gov reminds borrowers that even a home that passes the VA appraisal process with flying colors does NOT have a “stamp of approval” from the VA.
To address an important point in the reader question, VA borrowers should know that the VA does NOT guarantee that the home purchased with a VA loan is free from defects, nor can it refund or otherwise issue payments for problems with the property once it has been purchased.
The VA loan guaranty is specifically for the loan–a portion of the loan amount is guaranteed by the VA, protecting the lender should the borrower default and go into foreclosure on the VA loan. The VA loan guarantee is NOT a warranty on the house itself nor should it be considered as any type of home insurance whatsoever.
Borrowers should always pay for a home inspection, which is NOT required. Doing does cost money, but the borrower is paying hundreds in order to save thousands later.
In the case of this reader question, the most important thing to do is to contact the insurance agency and possibly retain the services of legal counsel with expertise in real estate law in that state.
Do you have questions about VA home loans? Ask us in the comments section.