Question 1

What is a VA loan appraisal in Florida?

Accepted Answer

VA appraisal: an appraisal conducted by a VA-approved appraiser to determine the fair market value of a property being purchased with a VA loan. In FL: the VA appraisal serves two purposes: value (the appraiser determines the property’s market value: the VA will not guarantee a loan for more than the appraised value), and condition (the appraiser evaluates whether the property meets VA Minimum Property Requirements: MPRs). The VA appraisal: is ordered through the VA’s online system (the lender requests the appraisal; the VA assigns an approved appraiser). The cost: is typically $400-600 in FL and is paid by the buyer.

Question 2

What are VA Minimum Property Requirements for Florida homes?

Accepted Answer

FL VA MPRs: the property must be: safe (no lead paint hazards, no exposed wiring, no structural defects, and no health hazards), structurally sound (the foundation, walls, and roof must be in good condition; the roof must have at least 2 years of remaining life), sanitary (adequate water supply, working plumbing, and functioning sewage disposal), and habitable (adequate heating and cooling: HVAC must be functional; adequate living space; and working kitchen and bathroom). FL-specific: termite inspection (required in FL: the appraiser notes any evidence of termite damage; a separate termite inspection report is typically required), flood zone (if in a flood zone: flood insurance is required), and roof condition (FL weather is hard on roofs: the appraiser pays close attention to roof condition).

Question 3

What happens if the VA appraisal comes in low in Florida?

Accepted Answer

Low appraisal: if the appraised value is less than the purchase price: the VA will only guarantee a loan up to the appraised value. Options: the buyer pays the difference (the buyer brings additional cash to cover the gap between the appraised value and the purchase price), the seller reduces the price (the seller agrees to lower the purchase price to the appraised value), the parties negotiate (meet in the middle: the seller reduces and the buyer brings some additional cash), request a Reconsideration of Value (ROV: the buyer or seller provides additional comparable sales that the appraiser may not have considered; the VA reviews and may adjust the value), and terminate the contract (if the contract includes an appraisal contingency: the buyer can terminate without penalty). The buyer: cannot be required to pay more than the appraised value (the VA does not guarantee the excess).

Veterans Administration Loan Appraisal

VA Loan Appraisals in Florida

Purpose

FL Requirements

Low Appraisal Options

Related Terms

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