VA Rules on Minimum Property Requirements
In the past, we have discussed situations where the Department of Veterans Affairs might waive its minimum property requirements. But some requirements cannot be waived because they directly affect the health or safety of anyone who might live in the home.
House hunters applying for a VA home loan won’t be approved for a loan on any property that doesn’t meet basic VA minimum property requirements in these areas.
According to the VA rules, properties evaluated by a VA appraiser must be free of hazards and defects. Any issue that could effect the health of the future owners must be addressed. Below are some of the most common issues that potential home owners may not consider to be factors of minimum property requirements, the issues aren’t as obvious as you might think.
Foundation
Foundation problems are a deciding factor when considering minimum property requirements. Foundation issues can be common in states like Texas, and violate the VA’s minimum property requirements.
Dampness
Excessive dampness is another issue. In Louisiana, some dampness might be expected based on humidity factors and other issues. But too much dampness is a potential structural hazard and won’t pass VA requirements.
Drainage
VA rules state that in order to be approved for a VA home loan, a property must be properly graded so the home has, “positive, rapid drainage away from the perimeter walls of the dwelling, and prevents ponding of water on the site.”
All these areas directly affect the future value of the property as well as the health and safety of the occupants. VA rules are designed to protect the investment, but they are also set up to protect the buyer from unsafe or unsanitary conditions they shouldn’t have to deal with in a new home.
kathryn byrne
Does the VA have a stipulation or restriction on out buildings? We are trying to sell our home and the buyer was denied VA loan approval citing that the out building (which is a two story pole building, finished, heated with two finished offices and plumbed for a bathroom) could not be 25% or more of the house size. Why is this?
Joe Wallace
Hi Kathryn, The VA stipulates that while a VA loan can be issued on a building with offices or other commercial space, that commercial space can't exceed 25% of the entire floor space of the property. It's not the status of the outbuildings themselves AS outbuildings, but rather that they are "commercial use" spaces if I read your question correctly. Hope this helps!
John Collier
I am a Realtor and currently working with a vet showing him properties. Is there a current list of MPR's as we do not want to look at homes that would not qualify? The list I have is dated 2000.
Joe Wallace
Hi John, Chapter 12 of the VA Lender's Handbook has a lot of information on MPRs--you can view it at http://www.vba.va.gov/ro/roanoke/rlc/forms/VA%20Pamphlet%2026-7.PDF
Anita
My husband has a HISA Grant to remodel our bathroom so it can accommodate him, he is a spinal cord injury and is confined to a wheel chair. I have 2 problems with the grant 1. it requires 3 bids from contractors with a 'CCR' number where I live there is not much call for government work so I am having problems finding them. I have been told by the VA contacts I am 'working' with I have to get the bids. That means I have to convince 2 contractors to go through the process and pay the nearly $500.00 to give me a bid and walk away from the job. I was told to tell them it would be for future work they would do. To me this is crazy. I get to chose the contractor but they all have to have the CCR number to give a bid to make sure the contractor I chose is not giving an inflated number. 2. They tell me the job has to meet the VA minimum property requirements but they do not tell me what that is. were can I find that?
Joe Wallace
Hi Anita, You'll find some useful information in this PDF--it's the chapter from the VA Lender's Guide on Minimum Property Requirements. Hope this helps! http://www.benefits.va.gov/WARMS/docs/admin26/pamphlet/pam26_7/ch12.doc
gina
We are trying to purchase a home. The listing agent is refusing to use the VA loan. She said one of the outbuildings will not pass inspection. Do outbuildings also have a strict criteria?
Joe Wallace
The answer may lie with state or local building code--you'll need to consult the local authority to determine whether the buildings in their current condition meet code or not.