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Last updated on April 28th, 2023 at 10:12 pm
Homes must meet certain criteria if you plan to use a VA loan. This ensures that veterans have safe and healthy housing.
The prerequisite is that the house must be habitable and safe for you and your family to live in. Lenders require pre-approval for condos if you want to use a VA loan.
What does a VA home inspection involve?
Expect a thorough VA inspection of the home loan. Remember, lenders want to know if a home is a good investment.
This means that a licensed and trained inspector will assess your assets for current or anticipated issues.
This includes careful inspection of heating and cooling, plumbing, electrical systems, roofs, and insulation.
Inspectors also inspect basements, floors, ceilings, and foundations. The inspector then creates a report detailing the current condition of the house along with the problem.
Because the house fails the inspection
The test is designed with your safety in mind! If there is a problem with the heating system, your home may fail the test.
The same is true if the building has an outdated electrical system. Roof problems and window damage are also big red flags. As well as pest problems, rotten wood, and water spots.
The exception to the rule
There are a few exceptions to this requirement. You can purchase the property without improvement, but the area does not count towards the value of the home.
Rental properties are also acceptable if the lease term must exceed the term of the mortgage by 14 years.
With a VA renewal loan, you can buy a home in need of repairs. In this case, you can borrow up to $1.5 million as long as the remaining amount of Veterans Affairs eligibility plus real estate equity must be at least 25% of the purchase price.
The minimum repair amount is $5,000, but there is no maximum. This includes extensive structural repairs and rehabilitation. Repairs must begin within 30 days and be completed within 6 months.
There is also the option of an Energy Efficiency VA Home Loan (EEM). This allows a home buyer to add up to $ 6,000 for an energy efficiency upgrade.
The clause is that the amount of money you save on monthly updates must be more than the money you add to your mortgage.
Reference Source: We Are The Mighty
