While VA home loans are great for veterans looking to buy a home, there are some additional hurdles. For example, a VA mortgage lender may require repairs be done to a home before you can buy it. These additional VA home loan repair requirements are not intended to make the process more difficult. Instead, the goal is to protect the buyer.
Similar to other government-backed home loan programs, such as FHA, VA home loans come with some tricky rules, including the requirement that the home is appraised and inspected by a VA-approved appraiser. The government sets the strict standard by which this person must comply.
A few common VA home loan repair requirements are:
- Rotting interior or exterior wood
- Roof repair
- Faulty HVAC units
- Significant plumbing issues
- Lead-based paints removal
- Water leaks
- Broken windows
- Termite or other pest issues
- And more
The strict standards are put in place to ensure the mortgage the VA is going to insure is a sound investment and to protect the buying from costly repairs in the future. The VA will not insure a home loan on a property with major issues that can put the health and safety of its inhabitants at risk.
Realtor and real estate attorney Bruce Ailion say the government has rigid rules for a reason.
“They’re intended to protect the lender’s interest in the property as collateral. It also protects the borrower’s interest in the property,” Ailion says. “FHA, VA and USDA want to make sure minimum property standards are met.”
Who pays for VA home loan repairs?
Typically, the seller is responsible for making any repairs prior to the close of escrow, however, this can be negotiated. In hot real estate markets where multiple-bid offers are common, adding repairs contingencies can easily kill your deal.
VA home loan repair options include:
- The seller picks up the tab and completes the necessary repairs
- The buying and seller agree to split the cost of the repairs
- The buyer or seller walk away from the deal.
While it’s imperative to work with a VA home loan specialist for your mortgage, it’s equally important to use a real estate agent who’s familiar with the VA process. For more information on VA home loan repair requirements, call us today at 888-320-7888.