VA Loan Reader Questions: Appraisal Disputes
A reader asks, “I am working with my good friend and VA buyer. The VA has denied the loan do to the fact that the appraiser is calling for removal of the septic. We have provided two certs to the appraiser and the VA proving it needs not to be replaced.”
“Another reason for her calling for removal is because there was a permit requested two years ago on the property. The seller pulled the permit because they were going to put an addition on, but ended up getting divorced and selling the home Now the appraiser has not personally tested the septic herself, but is calling for removal. What do we do?”
Appraisal disputes like these are tricky for the simple fact that the VA minimum property standards defer to local and state building code where applicable. There is no specific, technical guidance on file at the VA for these issues–state and local codes apply.
In any case, the VA does not override these code requirements, so if a home is technically compliant with VA minimum standards but not in compliance with applicable building codes, it must be corrected as directed by the appraiser.
In this situation there is a dispute between the buyer and appraiser. Cases like these should be directed to the VA Regional Loan Center with jurisdiction; only the VA can issue further guidance and resolve the issue.
Find the VA Regional Loan Center near you. Any issue such as this that needs resolution should involve the Department of Veterans Affairs–for advice at the very least. You can also contact the VA by phone at 1-800 827-1000.
Do you have questions about VA home loans? Ask us in the comments section.