VA Appraisals & Home Inspections
The difference between a VA appraisal and a home inspection — and why both matter for Montana veteran home buyers.
One of the most important things to understand as a VA buyer is the difference between a VA appraisal and a home inspection. They are two separate processes with different purposes, and both matter.
The VA Appraisal
The VA appraisal is ordered by your lender (not by you). The appraiser determines the home's fair market value and confirms the property meets the VA's Minimum Property Requirements (MPRs). The MPRs ensure the home is safe, structurally sound, and sanitary.
The VA appraisal protects the lender and the VA by ensuring the home is worth the purchase price and is in acceptable condition. If the appraiser identifies issues that do not meet MPRs, those issues typically need to be resolved before the loan can close.
What Happens If the Appraisal Comes In Low
If the home does not appraise for the contract price, you have options:
- Request a Reconsideration of Value (ROV) — your agent provides the lender with valid comparable sales showing the property is worth more than the appraised value. The lender asks the appraiser to reconsider.
- Renegotiate the sales price — ask the seller to lower the price to match the appraised value.
- Pay the difference — make up the gap between the appraised value and the sales price out of pocket at closing.
- Walk away — if you included the VA escape clause in your purchase agreement, you can void the contract if the appraisal does not support the purchase price.
The Home Inspection
The home inspection is ordered by you (the buyer) and is a more detailed examination of the home's condition. A professional inspector evaluates the roof, foundation, plumbing, electrical, HVAC, and other major systems.
While the VA appraisal checks for basic habitability, the home inspection gives you a much deeper picture. The inspection can reveal issues that might not violate MPRs but could still cost thousands to repair.
Why Both Matter
The appraisal protects the lender's investment and ensures the home meets minimum standards. The inspection protects you by revealing potential problems before you commit. Skipping the inspection to save money is a risk — it is one of the most important investments you can make when buying a home.
Important Disclaimer
Loan requirements, VA guidelines, eligibility rules, funding fee rates, and financing programs may change over time. The information in this guide is provided for educational purposes only and does not constitute financial, legal, or tax advice. We encourage you to confirm current information directly with the U.S. Department of Veterans Affairs and your VA-approved lender before making any financial decisions.