Buying a home with a VA loan offers incredible benefits, including no down payment and favorable terms, but it does come with requirements to ensure the property is in good condition. One of the most crucial steps in the process is the VA home inspection, which aims to guarantee the house meets the VA’s Minimum Property Requirements (MPRs). Here’s the dilemma: not every property passes the inspection on the first go.
If you’ve ever wondered why this happens or how to navigate common reasons for VA loan inspection failures, this article is for you. Whether you’re a first-time homebuyer, seasoned investor, or real estate professional guiding clients, understanding the potential pitfalls and solutions can save you time, stress, and money.
What Are the VA’s Minimum Property Requirements?
Before we dive into the common issues, let’s quickly cover what VA inspections are looking for. The VA wants homes that are:
- Safe: Free of hazards that could harm occupants.
- Sanitary: Clean and free from environmental contaminants.
- Structurally Sound: No major structural deficiencies that compromise livability.
These criteria ensure that veterans aren’t buying homes requiring costly repairs or upgrades upfront. While this is great for buyers, it also means properties with certain issues won’t pass inspection until they’re addressed.
Common VA Loan Inspection Failures
1. Roofing Problems
Issue: A damaged or leaking roof is one of the most common reasons for a failed inspection. Missing shingles, rotten wood, or leaks can be red flags.
Solution:
- Replace missing or damaged shingles.
- Repair leaks and rotting areas.
- For older roofs, consider a professional assessment to determine if a full replacement is necessary.
2. Electrical System Issues
Issue: Homes with faulty wiring, outdated electrical panels, or missing components (e.g., GFCIs in kitchens/bathrooms) won’t pass.
Solution:
- Hire a licensed electrician to fix the wiring and update panels.
- Install proper GFCI outlets near sinks, wet areas, and outdoor spaces.
3. Plumbing Problems
Issue: Leaky faucets, poor water pressure, or sewage system issues could lead to failed inspections.
Solution:
- Replace leaking pipes or faucets.
- Unclog or fix slow drains.
- Verify the water heater is functioning and up to code.
4. Foundation or Structural Concerns
Issue: Foundation cracks, uneven flooring, or significant structural damage can trigger inspection failure.
Solution:
- Hire a foundation expert to assess and resolve cracks or unevenness.
- Address sagging beams with proper reinforcement.
5. Pest Infestations
Issue: Termite or other pest infestations can jeopardize the structural integrity of a home.
Solution:
- Conduct a pest inspection and treat affected areas.
- Address damage caused by pests, such as replacing wood structures.
6. Safety Hazards
Issue: Broken windows, absent handrails, or exposed wires are all potential hazards.
Solution:
- Fix broken or cracked windows.
- Install missing handrails on stairs.
- Cover or remove exposed wires for safety.
How to Address Inspection Failures: Step-by-Step
- Step 1: Review the Inspection Report Carefully analyze the inspector’s findings. Identify which issues must be addressed immediately to meet VA MPRs.
- Step 2: Work with the Sellers In many cases, sellers are required to make repairs before closing, particularly if these are non-negotiable VA MPRs. Don’t hesitate to negotiate with them.
- Step 3: Hire Licensed Professionals Always opt for licensed contractors to address problems. This ensures repairs meet professional standards and prevents repeat issues.
- Step 4: Consider Escrow for Repairs Sometimes, buyers and sellers can agree to set up an escrow account for repairs post-closing. Keep in mind, however, this is subject to lender approval.
- Step 5: Get a Reinspection After repairs are completed, schedule a reinspection to verify everything has been fixed to VA standards.
Avoiding Future VA Inspection Pitfalls
Want to avoid these headaches altogether? Here are some proactive tips:
- Work with a VA-Savvy Realtor: Professionals experienced in VA loans can guide you toward VA-friendly properties.
- Invest in a Pre-Inspection: Homebuyers can request an unofficial pre-inspection to flag potential issues before the official evaluation.
- Keep an Eye on the Home’s Age: Older homes often have more issues that can complicate the VA inspection. Conduct a thorough walkthrough.
Conclusion:
VA loan inspections don’t have to be scary. By preparing for common VA loan inspection failures and understanding how to address them, you’ll be well on your way to securing your dream home.
Whenever you’re unsure about inspection results or how to move forward, consult a real estate professional who specializes in VA loans. Curious about affordability or next steps? Use our [VA Loan Affordability Calculator]to begin planning today!