Hometown Hero Credit

If you are planning to buy a home with a VA-backed loan, recent appraisal updates may make the process clearer and reduce some avoidable delays.

The U.S. Department of Veterans Affairs updated its Minimum Property Requirements, or MPRs, in the VA Lenders Handbook, Pamphlet 26-7, Chapter 12. The goal is to help Veterans compete in today’s housing market while keeping important safety and property standards in place.

These changes do not remove the VA appraisal. They also do not guarantee that a home, borrower, or loan will be approved. They update specific requirements that have sometimes added time, cost, or confusion to the process.

What changed in the VA appraisal requirements?

The VA identified several long-standing MPR topics for revision. Here is what the updates mean in plain English.

1. The full radon gas requirement was removed

The VA removed the full radon gas requirement listed under Topic 34.

This does not mean radon is no longer a concern. It means radon testing or certification is not automatically required in every situation under the revised VA appraisal guidance.

You can still request a radon test as part of your inspection and purchase process. Testing may be especially important in areas where radon is more common or when your inspector identifies a reason for additional evaluation.

A VA appraisal is not a substitute for a radon test or a complete home inspection.

2. Standards were revised for homes built before and after 1978

Topic 32 now includes revised guidance for properties built before 1978 and properties built in 1978 or later.

The updated approach is designed to focus attention on actual property concerns instead of automatically treating every minor condition the same way.

For older homes, lead-based paint and other genuine hazards may still require attention. For newer homes, certain cosmetic conditions may no longer create an automatic VA repair requirement.

Your lender and appraiser will determine how the current guidance applies to the property. The home’s age, condition, construction, and specific defects still matter.

3. Guidance for detached improvements was streamlined

Topic 1 was updated to streamline guidance for detached improvements and Specially Adapted Housing Regional Loan Center jurisdiction.

Detached improvements can include structures such as:

• Detached garages
• Sheds
• Workshops
• Barns
• Fences
• Other separate improvements

The revised guidance may reduce situations where a detached structure creates an automatic appraisal condition. However, that does not mean you should ignore the structure.

A detached building could still affect your safety, maintenance costs, insurance, property use, or overall decision to purchase. Your home inspector can help you evaluate those issues.

4. Guidance for non-vented heaters was updated

The VA also updated Topic 23 regarding non-vented heaters.

This change may reduce delays caused by paperwork or certification requirements for certain heating equipment. The equipment still needs to be evaluated under applicable standards, and safety remains important.

Ask your inspector to review the heating system, ventilation, installation, and visible condition. If the system raises a concern, bring it to your lender and real estate professional promptly.

Appraisal fees and timelines are also being adjusted

The VA is adjusting appraisal fees in select regions. The purpose is to keep the program competitive and help maintain a qualified pool of experienced appraisers.

Fees can vary by location. Ask your lender for the current appraisal fee that applies to the property you are considering.

As of May 31, the average VA appraisal took approximately seven business days. That figure is an average, not a promise.

Your timeline may be different because of:

• Local appraiser availability
• Property location
• Property type and complexity
• Lender processing time
• Scheduling access to the home
• Requests for additional information
• Repairs or follow-up questions

Ask for a realistic timeline before making an offer. Build flexibility into your contract when possible.

What did not change?

The VA appraisal still serves two important purposes.

First, it helps establish whether the property’s market value supports the proposed loan. Second, it evaluates whether the property meets applicable VA standards for basic acceptability, including important safety, structural, and sanitation concerns.

The appraisal is not a complete inspection. It does not guarantee that the home is free from defects. It does not predict future value. It does not replace your responsibility to understand the home’s condition.

Your lender will also review your income, credit, assets, debts, and other underwriting requirements. The VA appraisal and lender underwriting are separate parts of the loan process.

The updated rules may streamline certain reviews. They do not waive all property standards, guarantee approval, or make every property eligible for VA financing.

Why these changes matter in a competitive market

A smoother appraisal process can help reduce uncertainty for a prepared VA buyer. It may also help prevent a transaction from being delayed over a requirement that no longer applies in the same way.

That can be useful when sellers are comparing multiple offers.

However, speed should never replace due diligence. A buyer should not skip an inspection because the appraisal rules changed. A buyer should not assume that a home is safe simply because the appraisal is completed. A buyer should also avoid waiving important protections without understanding the consequences.

The strongest VA offer is not simply the fastest offer. It is an offer supported by preparation, clear communication, appropriate contingencies, and professionals who understand the VA loan process.

A practical checklist for VA homebuyers

Use these steps to prepare.

1. Get fully preapproved

A prequalification may be based on basic information. A full preapproval generally involves a more detailed review by the lender.

Ask what documents are needed and what conditions must be satisfied before you make an offer.

2. Ask which current rules apply

Ask your lender how the updated MPR and appraisal guidance applies to the property.

Also ask when the appraisal was ordered. The revised handbook guidance applies to appraisals ordered under the updated requirements. Your lender can explain how the order date affects your transaction.

3. Work with VA-experienced professionals

Choose a real estate agent and lender who regularly work with VA buyers.

They should be able to explain the appraisal process, contract timelines, repair concerns, and communication procedures without relying on outdated assumptions about VA loans.

4. Schedule an independent home inspection

A VA appraisal is not a home inspection.

Hire an independent, qualified home inspector to evaluate the home’s systems and condition. Depending on the property, you may also want specialized inspections for radon, termites, roofing, plumbing, electrical systems, or structural concerns.

5. Ask about Tidewater and reconsideration of value

Ask your lender and agent how they would handle Tidewater if the appraiser believes the property may not support the contract price.

Also ask about the process for a reconsideration of value if the appraisal comes in below the purchase price. Your lender can explain what information may be submitted and what deadlines apply.

6. Set realistic appraisal and closing dates

Do not rely only on the seven-business-day average. Ask about current local conditions and the lender’s processing timeline.

A clear schedule helps you plan inspections, financing conditions, moving arrangements, and rate-lock decisions.

7. Review the appraisal and raise questions promptly

When the appraisal is available, review it with your lender and agent. Ask questions about the value conclusion, comparable properties, reported condition, and any remaining repair requirements.

Prompt communication can help keep the transaction moving.

Know the difference between value, price, and repairs

These three items are related, but they are not the same.

• Purchase price: The amount agreed upon by the buyer and seller.
• Appraised value: The appraiser’s opinion of the property’s market value based on comparable sales and other relevant factors.
• Repair requirements: Work that may be needed to address applicable VA standards, lender requirements, or concerns identified during the transaction.

A home can have a purchase price that is different from its appraised value. If the appraised value is lower than the purchase price, your lender and agent can explain the available options. The updated VA rules do not automatically eliminate an appraisal gap.

Likewise, an appraisal may identify certain issues without providing the detailed condition assessment you would receive from a full inspection. Review both carefully.

A separate support option from Operation T.A.G.

Operation T.A.G. (Tangible Act of Gratitude) is a 501(c)(3) nonprofit project of the High Desert Community Foundation, partnered with PRMG, the nations 10th largest residential lender. Its Hometown Hero Credit is a non-profit program that may help eligible Veterans, active-duty service members, and Gold Star surviving spouses purchase or refinance a home.

Eligible participants may qualify for a 2% credit up to $21,000, subject to current program eligibility and applicable rules. Through its partnership with PRMG, the program is intended to provide tangible support during the home financing process.

The 2% credit up to $21,000 is calculated on the loan amount, not the sales price. It may be used for eligible closing fees, prepaid costs, a rate buydown, or real estate agent fees. In some cases, it may help pay down debt to support VA loan qualification.

The credit cannot be used for a down payment or for non-loan purposes. VA loans generally do not require a down payment, but that does not eliminate closing costs, prepaid expenses, inspections, moving costs, or other responsibilities.

The Hometown Hero Credit is not a replacement for the VA appraisal. It does not guarantee loan approval, eliminate lender underwriting, or automatically solve an appraisal gap. Ask your qualified lender how any available credit may be applied within the rules of your loan and transaction.

Prepare early and use the benefit you earned

The VA’s 2026 appraisal updates may reduce certain avoidable delays and make the process easier to understand. They do not remove the need for careful preparation.

Get fully preapproved. Ask questions early. Use experienced professionals. Schedule an independent inspection. Review the appraisal promptly. Compare your options before making final decisions.

With the right information and support, you can approach your VA home purchase with greater confidence and a clearer plan.

Sources

• Official VA News: VA updates home loan appraisal requirements
• VA-backed Veterans home loans
• Operation T.A.G.
• Hometown Hero Credit

Educational disclaimer: VA appraisal rules, eligibility requirements, underwriting standards, fees, timelines, and program availability can change. This article is for general educational purposes only. It is not a commitment to lend or individualized financial advice. Consult a qualified VA lender, real estate professional, and independent home inspector for guidance about your situation.

Brett Stacy
National Director & Founder of the Hometown Hero Credit, a program of Operation T.A.G. (Tangible Act of Gratitude), and 501(c)(3) non-profit project of HDCF.

Operation T.A.G. Contact Information
Phone: 760-456-8748 : 24-hour Information Line
Website: OperationTAG.org
Website: HometownHeroCredit.com

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