There are several myths surrounding VA appraisals. These myths create fear in a seller’s mind and prevent Offers with VA Loans attached from being accepted.Verify my mortgage eligibility (Sep 30th, 2022)
One of the biggest myths is that a VA Appraisal is always at risk of coming in below value and costing the seller money.
While there is a separate certification for VA Appraisers, for the most part the same appraisers that complete conventional and FHA appraisals will do the VA appraisals as well. Which means the value is assessed in the same way as all other appraisals.
If the appraisal does not come in at value; There are actually 2 chances to reconsider the value assigned. This is the advantage over FHA and Conventional Appraisals.Verify my mortgage eligibility (Sep 30th, 2022)
The first one is called Tidewater.
Tidewater allows for 48 hours to provide additional comparable homes to the appraiser.
If the appraiser has visited the property and cannot find the assigned value with the information, they have available. They will initiate the Tidewater process asking the interested parties for more information.Verify my mortgage eligibility (Sep 30th, 2022)
Once Tidewater is initiated there are 48 hours to turn in additional comps to help the appraiser find the needed value of the property.
Now if tidewater is over and the value assigned is still not enough to come to terms with all parties, there is a second option;Verify my mortgage eligibility (Sep 30th, 2022)
Reconsideration of Value
It is called a ROV. A Reconsideration of Value. The veteran can possibly get back 15% of the value that was missing from the original appraisal.
It goes like this…
Upon the veteran’s request, a “staff appraisal reviewer” sends additional information to the VA for additional consideration!Verify my mortgage eligibility (Sep 30th, 2022)
The information could include disputes on the appraiser’s choice of comps, price adjustments and any other errors made in the appraisal.
The ROV can take up to 3 weeks to be reviewed at the VA. However, this process can be much more successful in terms of getting value back.
VA Appraisal Minimum Property Requirements
The VA does have property requirement focused on the health and safety of the homeowner.Verify my mortgage eligibility (Sep 30th, 2022)
While they are stricter than a conventional loan’s requirements, they are similar to FHA. With the most common issues being chipping and peeling paint and hand rails on stair cases around the home.
The Bottom Line
VA is the only loan program that allows for 2 different times to affect the value if it’s coming in low. While there are minimum property requirements, they are similar to that of the FHA. With all of this in mind a buyer who is using the VA loan to make an offer on a property should always have their offer considered as a great option.Show me today's rates (Sep 30th, 2022)