Common Reasons A Home Will Fail The VA Home Loan Inspection

Common Reasons A Home Will Fail The VA Home Loan Inspection

Before guaranteeing a loan, the United States Department of Veterans Affairs (VA home loans division) wants to ensure that the home you wish to sell or buy is a worthy investment.

Part of ensuring this is by performing the mandatory VA home loan inspection to check for any damages or defects in the home that would lower its overall value or risk the safety of its occupants.  If the home meets the standards of the VA, the VA will issue a CRV. The CRV stands for Certificate of Reasonable Value.

Although each appraiser will emphasize their own interpretation of the guidelines, some common examples of items that will fail the inspection are broken windows, lack of proper electricity, holes in the roof, termites, etc.

These are very important elements in the inspection that are of concern not only for the safety of the loan providers, but for the personal safety of the first time home buyer and his or her family as well. In order to pass your VA home loan inspection, it's important to abide by the guidelines set about by the U.S. Department of Veterans Affairs.

As of now, there are no guidelines that require a specific size of the home as long as it is "Safe, Sound and Sanitary." The home should, however, be up to date with standard building codes as well as federal regulations and guidelines set by the U.S. Department of Housing and Urban Development.

Heat is an important element of these inspections. There must be an acceptable and efficient source of heat for the house that can provide comfortable and appropriate living conditions. If the only source of heat in the house is a wood-burning stove, it must be complemented with an alternative system that can maintain a minimum of 50 degree temperatures in the plumbing areas of the house.

The VA loan appraisers will also be very strict about broken windows. All broken windows must be properly repaired before the inspection or the home will not be approved. This is because broken windows not only affect the heating bill, but they invite burglaries and present a negative image of the house to the neighborhood.

Electricity is another element to be taken seriously by VA lenders. All homes must provide acceptable electricity for lighting and must have proper equipment for doing so. VA home loan inspectors will also check carefully for any holes in the roof that could lead to leaks and other defects that can severely damage and reduce the quality of a home. It is important to properly patch up any holes in the roof if you want to pass the loan inspection.

Loan underwriters will also require a termite clearance. Termites can eliminate your home's candidacy in the VA loan program. The seller of the home must provide section one termite clearance and, in many cases, section two as well. As a seller, it might be a contingency of the contract to go the extra mile by making the required guidelines and repairs set about in section two of the termite report.

Any violations of these guidelines can result in the disapproval of the home's acceptance in the VA home loan program as well as a full refund of the buyer's deposit in the event that a defect is found after inspection. The seller is responsible for all costs and liabilities of completing the required repairs of the VA home loan inspection.

If the seller does not make the required repairs, the buyer may cancel the contract. Often with short sales, the owners lein-holder will allow a credit for VA required repairs. If this is the case, the seller will not have to personally pay for the repairs as they will be billed to escrow.

Getting the VA to approve of the home and to issue a certificate, is not that difficult. As long as the home is in decent condition, it should be easy to receive VA approval.

If you are seller and would like to sell your home to a veteran, visit: VA Home Loan Philip Georgiades is the CLS for San Diego VA HLC. Article Source: http://EzineArticles.com/?expert=Philip_Georgiades

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