How long does a VA appraisal stay attached to a house?

Short Answer:

VA appraisal typically stay with the borrower and not the house (unlike FHA). The appraisal is typically valid for 180 days or 6 months for the borrower on the house. If another VA borrower bids on the house after a cancelled VA contract, a new appraisal would be ordered.

Longer Answer:

When purchasing a home with a VA loan, one of the essential steps in the process is obtaining a VA appraisal. This appraisal is crucial as it determines the fair market value of the property and ensures it meets the minimum property requirements set by the Department of Veterans Affairs.

Validity Period of a VA Appraisal

A VA appraisal is generally valid for six months, or 180 days, from the date of the appraisal. This period is designed to provide enough time for the loan process to be completed without requiring a new appraisal, assuming there are no significant changes in the market or the property's condition.

The Appraisal Sticks with the Borrower, Not the House

It's important to note that the VA appraisal is tied to the borrower and the specific loan application, not the property itself. This means that if the borrower decides not to proceed with the purchase, the appraisal and the value does not automatically transfer to a new buyer. A new buyer would need to obtain their own VA appraisal if they are also using a VA loan.

Why the Six-Month Validity?

The six-month validity period is set to accommodate the typical time frame needed to close a loan. It also accounts for potential delays that might occur during the home buying process. However, if the market is particularly volatile or if there are substantial changes to the property, a new appraisal may be required even within this period.

What Happens After Six Months?

If the loan has not closed within the six-month period, a new appraisal will be necessary. This ensures that the property's value is still accurate and reflects any changes in the housing market or the property's condition.

Conclusion

Understanding the validity period of a VA appraisal is crucial for both buyers and sellers involved in a VA loan transaction. Many sellers incorrectly think a VA appraisal and its value stick with the house, which is untrue. A VA appraisal sticks with the borrower, not the house. This should comfort sellers looking to accept a VA offer on their home.

If you have questions about a VA appraisal, please reach out at teamjd@mainstreethl.com

These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact me.

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