NVAR Article VA Repairs .mp4 from David Piatek on Vimeo.

VA Repair Items

by David Piatek

Hi everyone, my name David Piatek, Senior Vice President at The Federal Savings Bank and an NVAR Strategic Partner.  Welcome to another video blog talking about Military members and using the VA Home Loan.  Today’s topic, it’s a HOT ONE that many agents don’t know: VA Appraisal repair items and who pays for them.

I’d say, the top concern for listing agents when it comes to VA Home Loan offers is VA Appraisal Repair items that are sometimes noted.  The property does not need to be in that perfect–gut rehab type home.  It can be outdated. In general, the VA appraiser is looking out for the military member to determine that the property meets the VA’s Minimum Property Requirements (MPR) and is Safe, Sound and Sanitary condition.  Common repair items that come up include: peeling paint on either the exterior trim, deck, and garage, along with broken windows.  Another common item is sheds, barns and garages that might have excess wear or are dilapidated to a point that it doesn’t make sense to fix them.

The normal course of business, what everyone thinks, is to send the repair list to the seller’s side and have them do all the repairs before closing.  Well, as you know in this market – that can be tough.

Here’s where the MAGIC happens.  ANY repair items required by the appraisal can be paid for by the buyer and completed after they take possession of the property through an ESCROW account.  The lender will hold 1.5 times the estimated cost of the repair(s) based on a contractor’s bid.  That money will be released back to the military member after the appraiser goes back out to the property to ensure the repairs have been completed.

Remember when we talked about sheds, barns and garages that might have excess wear or be dilapidated? The solution is easier than you think, the military member can request (in writing) that the appraiser does not count the shed, barn, or garage in determining value and now that item is omitted from the appraisal.  In fact, you can ask the VA to waive any repair items listed on the appraisal. 

The VA Home Loan is a phenomenal product, that offers huge benefits and savings to military members and their families. If you have questions about the VA Home Loan or working with military members, please give me a call at 202-875-1010.  I’m happy to help.

Have a great day!

Subject to credit approval.  Terms and conditions may apply.  Subject to VA eligibility requirements.  Property insurance is required on all loan secured by property.