Don’t Rely on “As-Is” Sales Contracts

In some real estate transactions, especially in hot markets, buyers may feel pressure to accept a property “as-is.” That can come with a risk when using a VA loan. Even if the seller has made it clear they won’t make any repairs, the VA still requires those repairs to be made before the loan can be finalized if the home doesn’t meet the MPRs.

This puts VA buyers in a difficult position as either the buyer can walk away or pay out of pocket for repairs on a home they don’t yet own. That’s why it’s essential to go into the process informed and to work with a real estate agent who understands the VA loan’s unique requirements.

Manufactured and Unique Properties: Proceed with Caution

Not all properties are treated equally under the VA loan program. Manufactured homes, for instance, must meet specific guidelines, including being permanently affixed to a foundation and classified as real property. If you're looking at tiny homes, barndominiums, or other nontraditional structures, the odds of running into appraisal issues go up.

That’s not to say these properties are impossible to finance with a VA loan, but they will often require extra scrutiny. It’s wise to check with a lender or mortgage broker early in the process to avoid pursuing a property that may never qualify. You can avoid wasting time and money going through a process that may not come to fruition.

What Can Be Done If the Property Falls Short?

If the VA appraiser finds issues that violate the MPRs, they will usually note the problems in their report and condition the loan approval on the completion of repairs. In some cases, the seller agrees to make the repairs, especially if the buyer is offering full price or close to it. In other cases, negotiations fall through.

Most of the time, the seller must complete the repairs before closing, and the appraiser may have to re-inspect the property to confirm the work is done. If you're in a position where you want the home and the seller isn't willing to make the necessary repairs, you could be stuck in a position where you may need to make the repairs before closing. In some cases, a repair can be made within a certain number of days after a closing. This is a case by case situation.

Be Proactive, Not Reactive with Your VA Loan

The VA appraisal isn’t designed to complicate the buying process. It is actually intended to protect veterans and ensure they are getting a safe, livable home that justifies its price. However, surprises during the appraisal can cause stress, delays, and even lost deals if you’re not prepared.

If you're a veteran buying a home with a VA loan, the best thing you can do is be proactive. Work with an experienced VA loan specialist and a real estate agent who understands the nuances of the process. Ask about potential red flags before making an offer, and don't hesitate to walk away from a property that looks like more trouble than it’s worth.

The VA loan is one of the best tools available to help you build a stable and secure future. By knowing what to avoid—and what to look for—you can make that future a reality with fewer surprises along the way.