5 myths about VA appraisals:

1. Myth: Utilities need to be on during the appraisal.

Reality: No, the appraiser is not required to check utilities. The VA handbook does not specify this as a requirement.

2. Myth: Water heaters must be double strapped.

Reality: No, the VA does not have state-specific requirements like double strapping water heaters. Lenders may require this, but appraisers can be reprimanded for making the appraisal subject to installation of water heater straps.

3. Myth: Carbon monoxide and smoke detectors are required.

Reality: No, the VA does not mandate these as nationwide requirements. Lenders may require them, but appraisers should not make the appraisal subject to installation of smoke and CO detectors.

4. Myth: Flaking/peeling paint is not a concern.

Reality: Flaking/peeling paint is a minimum property requirement. It must be scraped and painted before closing, and paint chips should be removed from the ground.

5. Myth: VA appraisals are stricter than FHA or Conventional appraisals.

Reality: VA appraisals are not necessarily stricter. FHA has slightly more requirements, while VA differs from conventional mainly in requiring termite clearance and addressing flaking/peeling paint. VA aims to facilitate home purchases for veterans as long as the property is safe, not to create hurdles. Based on extensive experience, the VA process is often smoother than Conventional and FHA appraisals.

The VA Lender's Handbook emphasizes that appraisers must conform to Uniform Standards of Professional Appraisal Practice (USPAP) and meet additional VA requirements[1][2]. The handbook also states that appraisers must provide an itemized list of observed repairs required to meet VA minimum property requirements[3].

Citations:

[1] https://www.benefits.va.gov/WARMS/docs/admin26/m26-07/Chapter_11.pdf

[2] https://www.benefits.va.gov/warms/docs/admin26/pamphlet/pam26_7/ch11.doc