VA Appraisal
What will fail a VA appraisal?
It can stop a sale two ways.A Department of Veterans Affairs (VA) appraisal checks the home against VA's standards and sets its value. If the home needs repairs, they have to be done, or waived by VA, before VA backs the loan. If the value comes in below the price, you have choices, from asking VA to look again to walking away.
This page shows what the home has to pass, what happens when the value is low, and what you can do about each.
Start Here
What a VA appraisal checks
A VA appraisal does two jobs. It checks the home against VA's Minimum Property Requirements, and it estimates what the home is worth.
When the home needs work to meet those requirements, the appraiser writes the appraisal "subject to" the repairs. The value comes back on a Notice of Value, the VA document that shows the value set for the home.
A VA appraisal is not a home inspection. The appraiser notes repairs that are easy to see, but does not check that systems and appliances work. VA's Notice of Value includes a recommendation that you may wish to get a home inspection.
VA tells appraisers not to ask for repairs of cosmetic items, minor upkeep or normal wear and tear. Those can still affect the value.
Sources: VA Lenders Handbook, Chapter 10 (topic 1). VA Lenders Handbook, Chapter 12 (topic 1). Both VA, retrieved 14 October 2026.
What The Home Has To Pass
VA's standards for the home
VA's Minimum Property Requirements help make sure a home is safe, structurally sound and sanitary. They also cover where the home sits and legal questions like access.
- Room to live. Space for living, sleeping, cooking and eating, and a bathroom.
- A way in. Safe access on foot or by car from a street with an all-weather surface. If the road is private, it needs a permanent easement, a recorded right to use it. Ask your lender what else a private road needs.
- Water, power and sewage. A steady supply of safe drinking water, hot water, electricity, and a safe way to get rid of sewage. No frayed or bare electrical wires.
- Heat. Permanent heat that keeps areas with plumbing at 50 degrees Fahrenheit or warmer. In a mild climate, heat may not be needed. Air conditioning is not required, but if the home has it, it has to work.
- A roof that works. It has to keep water out and have reasonable life left in it.
- No defects that make the home unsafe or unsound. VA's examples: poor workmanship, settling that is still going on, too much dampness, leaks, rot and termites.
- Old paint, on homes built before 1978. VA treats these homes as having lead-based paint. Any peeling, chipping or loose paint has to be fixed, and VA does not accept cost as a reason to skip it. On a home built in 1978 or later, damaged paint is normally treated as cosmetic.
- Termites. VA requires a termite inspection report if the appraiser sees signs of termites or damage, or if the home is in an area the termite map VA uses rates "very heavy" or "moderate to heavy." Damage has to be repaired.
- No hazards. Nothing that puts the health and safety of the people living there, or the structure, at risk.
VA lists the places that need a termite inspection, by state, on its local requirements page.
Changed in 2026: VA updated these standards. It removed its radon gas section and changed its rules on old paint and on heaters without vents.
Sources: VA Lenders Handbook, Chapter 12 (topics 1, 3, 4, 14, 15, 20, 21, 23, 26, 32, 33 and 34). VA Circular 26-22-17 (private roads). VA local requirements. VA News, 25 June 2026. All VA, retrieved 14 October 2026.
Two Ways It Can Stop A Sale
Repairs, or a low value
Each one has its own next steps.
The home needs repairs
To meet VA's standardsThe appraisal is made subject to the repairs
The value counts the work as done. The repairs VA requires are listed on the Notice of Value.
You may pay, or ask the seller to
For termite inspections and repairs, VA encourages veterans to negotiate the cost with the seller.
The work is done and checked
The VA appraiser or the lender confirms it. A lender may hold money at closing for work finished after, but all of it has to be done before VA backs the loan.
Ask VA for a waiver
After the Notice of Value, VA will consider it if you sign the request, your lender agrees, and the home is safe, sound and sanitary. VA may lower the value by what the repair was worth.
The value comes in low
Below the contract priceThe appraiser warns the lender first
Then waits 2 business days for the lender, or anyone in the sale the lender reaches out to, to send more home sales. VA calls this the Tidewater Procedure.
You can ask VA to look again
Ask in writing, on your own or through your lender. VA reviews it within 5 business days. In some cases VA does a field review, which takes up to 20 business days.
Ask the seller to lower the price, pay the difference, or walk away
To pay the difference, you put in your own money as a down payment. The VA escape clause lets you walk away and keep your earnest money.
Capped at the price or the value, whichever is lower
VA says its loan often needs no down payment, as long as the price is not higher than the appraised value.
In the Tidewater Procedure, the appraiser still decides the value. VA says the process is for sharing home sales only, never an instruction to reach a set value.
Sources: VA Lenders Handbook, Chapter 12 (topics 1 and 43). VA Lenders Handbook, Chapter 10 (topics 8, 22 and 23). VA Circular 26-22-11, section 3. VA Escape Clause. VA purchase loan. All VA, retrieved 14 October 2026.
Your Contract
The clause that protects your deposit
The VA escape clause lets you walk away without losing your earnest money if the price is higher than the value VA sets.
VA requires the clause when you sign the purchase contract before you get the Notice of Value. That includes a contract on a new build. If it is missing, the contract has to be changed to add it before closing. Your lender has to make sure it is there.
With the clause, you can also go ahead with the purchase anyway. The choice is yours.
What it does not cover. Deposits paid to a builder for upgrades on a new build are not earnest money, and the builder does not have to refund them. If there is a dispute over your deposit, VA says it cannot step into civil disputes or give legal advice.
The VA escape clause covers a value below the price, and nothing else.
Sources: VA Escape Clause, VA. 38 CFR 36.4303(k). Retrieved 14 October 2026.
Before The Appraisal
What to ask your agent and lender
Ask these before the appraisal is ordered.
- Will the VA escape clause be in our contract?
- Is this home in an area where VA requires a termite inspection?
- Was the home built before 1978? Is any paint peeling or chipping?
- If the appraiser warns that the value may be low, who gathers the home sales, and how fast?
- If repairs come back, who pays, and will they be done before closing?
- Should I get a home inspection too?
This page is not legal or financial advice. VA sets the value and the standards, and your lender works with VA on your loan. Ask your lender about your own appraisal.
Sources: VA Escape Clause. VA Lenders Handbook, Chapter 12 (topics 1, 32 and 33). VA Lenders Handbook, Chapter 10 (topic 8). All VA, retrieved 14 October 2026.
A page can explain the rules.An agent who knows them can help you plan for the appraisal before you make an offer.
Mission Ready Operators are trained and tested on the VA loan, including the appraisal. VA still sets the value and the standards the home has to meet.
Last reviewed October 2026 · Maintained by My Military HQ
Common Questions
Questions buyers ask about the VA appraisal
What will fail a VA appraisal?
A VA appraisal can stop a sale two ways. The home may need repairs to meet VA's Minimum Property Requirements, which help make sure a home is safe, structurally sound and sanitary. Or the value VA sets may come in below the price. Repairs have to be done, or waived by VA, before VA backs the loan. Your lender can tell you what your VA appraisal found.
What happens if a VA appraisal comes in low?
Before the VA appraisal is final, the appraiser warns the lender and waits 2 business days for more home sales to consider. After VA's Notice of Value, you can ask VA in writing to reconsider the value. If it stays below the price, you can ask the seller to lower the price, pay the difference with your own money, or walk away. The VA escape clause in your contract lets you walk away without losing your earnest money.
Who pays for VA appraisal repairs?
VA says a veteran may pay for repairs needed to meet VA's Minimum Property Requirements. For termite inspections and repairs, VA encourages veterans to negotiate the cost with the seller. The repairs still have to be done before VA backs the loan, unless VA agrees to waive them. Ask your lender how your repairs will be checked.
Is a VA appraisal the same as a home inspection?
No. VA says an appraisal is not a home inspection. A VA appraiser notes repairs that are easy to see and estimates the home's value, but does not check that systems and appliances work. VA's Notice of Value includes a recommendation that you may wish to get a home inspection.
What is the VA escape clause?
The VA escape clause is wording VA requires in a purchase contract you sign before you get VA's Notice of Value. If the price is higher than the value VA sets, it lets you walk away without losing your earnest money, or go ahead anyway. VA says it cannot be used to cancel for any other reason.
Does peeling paint fail a VA appraisal?
On a home built before 1978, VA treats the paint as having lead in it, and any peeling, chipping or loose paint has to be fixed before VA backs the loan. The VA appraiser has to certify the work. On a home built in 1978 or later, VA normally treats damaged paint as cosmetic.
Sources
Where every fact came from
Everything on this page comes from VA or from federal law. Where VA does not say something, we left it out.
- What the home has to pass, repairs and waivers. VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Minimum Property Requirements, VA. Retrieved 14 October 2026.
- What an appraisal checks, the low value warning, asking VA to look again, and repair checks. VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Appraisal Process, VA. Retrieved 14 October 2026.
- The escape clause, your choices when the value is low, and what the clause does not cover. VA Escape Clause, VA. Retrieved 14 October 2026.
- The law behind the escape clause. 38 CFR 36.4303(k), Code of Federal Regulations. Retrieved 14 October 2026.
- Who may pay for repairs. VA Circular 26-22-11, Pest Inspection Fees and Repair Costs, VA, valid until rescinded. Retrieved 14 October 2026.
- Private roads. VA Circular 26-22-17, Private Roads and Shared Driveways, VA, valid until rescinded. Retrieved 14 October 2026.
- What changed in 2026. VA updates home loan appraisal requirements, VA News, 25 June 2026. Retrieved 14 October 2026.
- Where a termite inspection is needed, by state. VA local requirements, VA. Retrieved 14 October 2026.
- Often no down payment while the price is not above the appraised value. VA purchase loan, VA. Retrieved 14 October 2026.
- Appraisal fees and how long an appraisal takes where you buy. VA appraisal fee and timeliness schedule, VA.
- Questions about your own case. VA Home Loans contact page, VA.
What we left out on purpose. We give no appraisal fees or timelines, because they change by location. Use VA's schedule. We do not say whether a private road needs a maintenance agreement, because two VA sources say different things, so ask your lender. And we do not cover the extra rules for wells, septic systems, condos, new builds or manufactured homes.
Also In This Series