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Exceptions to the VA Minimum Property Requirements

Any property to be purchased with a VA home loan must meet a list of Department of Veterans Affairs minimum property requirements or MPR for short. The list of MPRs wide range of issues from accessibility to health and safety.

For example, when it comes to street access, the VA rules state, "Each property must be provided with a safe and adequate pedestrian or vehicular access from a public or private street." The rules also add, "Each living unit must be able to be used and maintained individually without trespass upon adjoining properties. Any easements required must run with the land."

Some purchases may require exceptions to the VA MPR list because of geographic variances or other issues that could make compliance impractical or even impossible. Depending on the terrain, construction and location of other properties, a given house may not be physically able to live up to VA requirements, and in such cases the VA allows the buyer and
lender to appeal in writing for an exception to the minimum property requirements.

These exceptions can't be made for any condition that leaves the property in unsanitary conditions, or compromise the structural integrity of the home. VA MPRs are completely inflexible in this area, and with good reason.

Properties to be financed with a VA guaranteed mortgage should be free of hazards and defects. Any issue that could effect the health of the future owners must be addressed. The same goes for any issue that could "adversely affect the structural soundness of the dwelling and other improvements to the property, or impair the customary use and enjoyment of the property by the occupants." Some of those issues are regional, others are situational.

Foundation problems, which are common in parts of the USA such as Texas, can
violate the VA's MPRs. Some settling of a house is normal; the problem comes in when there is evidence of "continuing settlement". The same goes for "excessive dampness". In Louisiana, some dampness might be expected based on humidity factors and other issues. But too much
dampness is a potential structural hazard and won't pass VA requirements.

Drainage is also an issue. VA rules state that in order to be approved for a VA home loan, a property must be properly graded so the home has, "positive, rapid drainage away from the perimeter walls of the dwelling, and prevents ponding of water on the site."

It's important for the buyer to understand that any minimum property requirements waived by the VA can have a direct effect on both the property value and the amount of the VA home loan. If the VA Notice of Value reflects a lower amount because of the MPR waiver, the amount of the VA loan will reflect that lower amount--the veteran cannot get financing for a VA mortgage that is higher than the amount on the NOV. These are important considerations to make when it comes to budgeting for a VA mortgage, down payments and other issues that affect the buyer's finances.

FHA NEWS and RELATED ARTICLES

VA Loans, Credit Issues and Co-Borrowers

VA loans don't always involve a single borrower. Sometimes there are situations where co-borrowers, co-signers, and joint loan applicants want to apply for a VA guaranteed mortgage loan.

Qualifying for a VA Loan

There are a great many commonly asked questions about VA home loans, but one of the most-asked topics revolves around the issue of VA loan eligibility. One important issue connected to eligibility is the nature of an applicant's military discharge.

VA Loans and Seller Concessions

The VA home loan program is not the only type of government insured mortgage loan program. There are other programs available which, unlike VA loans are open to the general public.

The VA Interest Rate Reduction Refinance Loan program (abbreviated as VA IRRRL) does require a VA loan funding fee. But, borrowers eligible for a this exemption should not assume that it is automatic.

About the VA Loan Funding Fee

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