Duane Buziak Teaches: VA Appraisals: What Can Delay Your Closing
A VA appraisal is not just another box to check before closing. For a military family working around PCS orders, a school enrollment deadline, or a lease that ends next month, it can be the moment that confirms the home, the contract price, and the financing are all ready to move forward.
The good news is that VA appraisals are built to protect the veteran. The complication is that protection can expose issues that a rushed contract, an aggressive list price, or a poorly maintained property tried to hide. Knowing what happens before the appraiser arrives gives you more control over the timeline and more leverage when a problem needs to be solved.
By Duane Buziak, NMLS #1110647
Table of Contents
- What a VA appraisal does
- What the appraiser reviews
- How appraisal value affects your contract
- Minimum Property Requirements
- A worked VA payment example
- VA compared with conventional and FHA financing
- How to avoid a closing delay
- VA appraisal FAQs
What VA appraisals actually do
A VA appraisal has two jobs. First, it establishes a reasonable market value for the property. Second, it identifies whether the home appears to meet the VA Minimum Property Requirements, commonly called MPRs. The appraiser is not performing a full home inspection, and an appraisal is never a substitute for hiring your own inspector.
The value portion protects you from paying more than the home can support. The condition portion focuses on safety, structural soundness, and basic livability. A peeling exterior surface, an exposed electrical hazard, a roof near the end of its usable life, or an inoperable heating system can matter more to a VA appraisal than cosmetic quirks such as dated cabinets.
The appraiser studies recent comparable sales, location, lot characteristics, size, condition, features, and market conditions. A beautifully remodeled kitchen may help, but it does not automatically justify a price jump if comparable homes did not support it. That is why the cleanest VA contract is one supported by a local agent who understands recent closed sales, not just active listings.
How the appraisal value changes the deal
If the appraisal meets or exceeds the purchase price, the transaction can proceed, assuming the remaining underwriting items are satisfied. If it comes in below contract price, the buyer has choices. The seller can reduce the price, the buyer can bring in funds above the appraised value, both parties can renegotiate, or the contract can end under the VA escape clause.
That clause matters. It gives eligible VA buyers a path out of a contract without forfeiting earnest money when the value does not support the agreed price. A buyer can still choose to proceed, but they should make that choice with clear eyes and a complete calculation, not because they feel pressured by the calendar.
In Richmond and across Virginia, price discipline matters because the market has moved quickly. Virginia REALTORS® reported a statewide median sales price of $420,000 for 2024. When values rise, an offer based only on emotion can create an appraisal gap that neither side expected. A broker should review the contract, financing structure, and possible appraisal-gap exposure before you remove protections.
Minimum Property Requirements are not cosmetic rules
MPR items are often misunderstood as a list of reasons to reject a house. They are better viewed as a baseline for a safe, functional home. The property should have adequate access, working utilities, a sound roof, safe electrical systems, and reliable heating. Water intrusion, damaged steps without handrails where needed, broken windows, or visible wood rot can trigger required repairs.
Some repairs are simple and fast. A missing handrail or peeling paint may be corrected before closing with receipts and photos. Other concerns, such as a major roof issue or a well-water problem, can require additional review and more time. The right strategy depends on the property, the repair scope, and whether the seller can complete the work before your target closing date.
Do not confuse an MPR condition with a complete defect report. An appraiser may not see problems hidden behind walls, beneath flooring, or inside systems that appear operational. Keep the home inspection contingency and read the inspector’s report carefully. That separate inspection is where you can make a fully informed decision about the home you will own.
A worked VA purchase example with real math
Here is a straightforward first-use VA purchase example. Assume a veteran buys a home for $400,000 with zero down, is not exempt from the funding fee, and finances the standard 2.15% VA funding fee. The funding fee is $400,000 × 0.0215 = $8,600. The total financed amount is therefore $408,600.
At a fixed 6.25% interest rate for 30 years, the estimated principal-and-interest payment is about $2,515 per month. That figure does not include property taxes, homeowners insurance, or any homeowners association dues. The funding fee may be lower or waived for eligible borrowers, including many veterans receiving qualifying disability compensation. A broker should confirm your exact entitlement and exemption status before quoting final figures.
The lesson is not that every buyer will pay $2,515. The lesson is that financing choices should be shown in dollars. A slightly different rate, funded fee decision, or seller credit structure can change your cash-to-close and monthly payment. Ask about no-out-of-pocket closing options when the contract and pricing allow them, but always review the trade-off in rate or loan amount.
VA, conventional, and FHA financing compared
| Feature | VA Purchase Loan | Conventional Purchase Loan | FHA Purchase Loan |
|---|---|---|---|
| Down payment | Often 0% for eligible borrowers | Often 3% to 20% or more | Usually 3.5% with qualifying credit |
| Monthly mortgage insurance | No monthly PMI | Usually required below 20% down | Annual mortgage insurance generally applies |
| Upfront program charge | VA funding fee may apply | No VA funding fee | Upfront mortgage insurance premium applies |
| Rate structure | Market-priced based on credit, occupancy, and lender options | Market-priced based on credit, down payment, and loan profile | Market-priced with FHA program rules |
| Property review | Value review plus MPR condition standards | Appraisal standards vary by program | Value review plus FHA property standards |
Rates are not interchangeable across programs, and neither is the total cost. A conventional option can make sense for a buyer with substantial cash and a strong reason to avoid the VA funding fee. FHA can help some buyers who are not VA-eligible. For eligible veterans, though, the combination of zero down and no monthly PMI deserves a serious side-by-side comparison before leaving an earned benefit on the table.
How to keep the VA appraisal from delaying closing
Start with a realistic offer. Your agent should review closed comparable sales and watch for unusual property features that may not be easily supported by nearby homes. If the seller priced based on upgrades, ask whether comparable sales show buyers actually paid for similar upgrades.
Next, address visible condition concerns early. If you notice peeling paint, loose railings, standing water, damaged siding, or a questionable roof during the showing, do not wait for the appraisal to discover it. Raise it during negotiations. A seller who agrees to make repairs before the appraisal is often protecting the closing date as much as the buyer.
Finally, get pre-approved before you write the offer. VA Loans Pro offers a NoTouch Credit Pull option, which allows an initial mortgage review without a hard inquiry. That gives military buyers a practical starting point while we compare options across a broad broker marketplace and prepare for the documents underwriting will need after contract.
VA appraisal FAQs
1. How long do VA appraisals take?
Turn times depend on local appraiser availability, property complexity, and season. Many reports are completed within days, but rural properties and repair follow-ups may take longer.
2. Can a VA appraisal come in higher than the purchase price?
Yes. If the appraised value exceeds the contract price, it generally supports the agreed price, but it does not create cash back for the buyer at closing.
3. Can the seller pay for VA-required repairs?
Yes. Sellers commonly complete required repairs, provided the work is acceptable and documented before closing.
4. What happens if the VA appraisal is low?
You can renegotiate the price, pay the difference if you choose, challenge factual errors through the available reconsideration process, or use the appraisal protection in your contract.
5. Does a VA appraisal inspect every part of the home?
No. It is not a home inspection. Hire a qualified inspector to evaluate systems, safety concerns, and defects beyond the appraiser’s scope.
6. Are VA appraisals harder than conventional appraisals?
They are not harder for a sound, well-maintained property. They do include MPR standards that can require repairs conventional financing might not flag.
7. Can VA Loans Pro help before I make an offer?
Yes. VA Loans Pro can review eligibility, payment scenarios, likely cash-to-close needs, and pre-approval options before you compete for a home.
8. Is VA Loans Pro legit?
VA Loans Pro is operated by Duane Buziak Mortgage Maestro through Coast2Coast Mortgage, LLC. Duane Buziak is NMLS #1110647, and Coast2Coast Mortgage, LLC is NMLS #376205.
9. Do I need a new appraisal for a VA refinance?
It depends on the refinance type. A VA IRRRL may not require an appraisal in many cases, while a VA cash-out refinance typically does.
10. Can I use a VA loan with a 500 FICO score?
VA Loans Pro has VA financing options approved to 500 FICO, but approval depends on the complete file, residual income, payment history, property, and program guidelines.
Move forward with facts, not pressure
A strong VA offer is not the highest offer at any cost. It is the offer that matches the home’s supportable value, protects your earned benefit, and leaves enough room to close on time. If you are facing a PCS move or preparing to buy in Virginia, get your financing strategy settled before the appraisal clock starts.
Legal Disclaimer: This article is for educational purposes only and is not a commitment to lend, an approval, or legal, tax, or real estate advice. Loan approval, rates, terms, fees, eligibility, and appraisal outcomes are subject to change and depend on borrower qualifications, property conditions, and applicable program requirements. Equal Housing Opportunity.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC
[Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.