Veterans and Members of the Armed Services can take advantage of several benefits when buying or building a home, including no down payment and competitive interest rates. But to protect borrowers and to provide healthy and safe living conditions for buyers purchasing a home with a VA loan, the Department of Veterans Affairs has established VA minimum property requirements known as MPRs. These standards help ensure that the property is ‘structurally sound, sanitary and safe’.
If you plan to purchase a home (or even build one using a VA Construction Loan) you need to know about these MPRs. Let’s take a look at what they are, why they’re relevant and how they can affect your chances of being approved for your VA loan.
What Are VA Minimum Property Requirements?
VA Minimum Property Requirements (MPRs) are guidelines set by the Department of Veterans Affairs designed to help the VA on the types of properties it will accept as a loan guarantee. These standards apply to both existing and new homes.
MPRs serve two primary purposes:
- Protect the Veteran – The VA wants to ensure that veterans are not investing in properties that are hazardous or in poor condition.
- Protect the Lender – A safe, livable property retains value, making it a secure investment for the lender.
Key Areas Covered by VA MPRs
The following are some of the most Important things the VA appraiser is going to consider:
1. Safety
- The property cannot pose a risk to the individuals living in it.
- The electricity will need to be in good working order and meet code standards.
- Stairways and decks are required to have adequate handrails.
2. Structural Soundness
- The foundation, roof, and walls have to be sound.
- They should not have any significant cracks or water damage.
- Pest inspections are commonly needed to certify that there is no termite or other insect damage.
3. Sanitation
- The premises must have adequate and safe methods of sewage and water disposal.
- There should be flowing water and functioning fixtures in all bathrooms and kitchens.
4. Access and Utilities
- There must be adequate access to the property via public or private roads.
- All mechanical systems (heating, cooling, plumbing) must be operational.
How MPRs Affect Homebuyers
While the VA’s aim is to safeguard veterans, MPRs can make the purchase process a little more complicated in some cases. If a home doesn’t pass the MPRs, the buyer can request repairs, negotiate with the seller, or look for another home that meets the criteria.
What if the Property Doesn’t Qualify?
If a home does not meet MPRs the VA appraiser will put together a repair list. These are challenges that need fixing for the loan to be approved. If the seller is not willing to make repairs, the buyers can elect to pay for them (should their lender allow) or look for a different property.
Building a Home and VA MPRs
If you plan to construct the home yourself with a VA construction loan, MPRs would still apply, but in a different way. For new construction, the property must be constructed in compliance with local building codes and VA standards. This will make for a safe home right from the beginning.
One of the best ways to make sure you are in compliance is by working with VA approved builders. They know what the VA is looking for in a new home and work to make sure that the new construction meets all of the requirements and can even help eliminate hold ups in getting the loan approved the first time.
Manufactured and Modular Homes: Do They Qualify?
Because of their cost-effective nature, a lot of veterans are turning to purchasing Modular Homes in Texas. These homes are able to be financed by the VA, HOWEVER must meet all VA MPRs and be set on a permanent foundation.
Likewise, if you are looking to obtain a VA Loan for Manufactured Homes, ensure that the home is double-wide or greater, that it has a permanent foundation, and meets all state and local requirements. And manufactured homes must be “real property” and not considered personal property.
VA MPRs and the Texas Real Estate Market
If you are seeking VA Loans in Texas, visit our website now. The Texas housing market features 12,802 homes on the market, most of which are generally in VA loan range; a few of the homes might also be within just a few square feet of a VA loan limit in Texas (and are especially handy tools for estimating purchase price potential average closing costs when estimating your monthly payment).
Buyers, however, are wise to order a professional VA appraisal early in the process to catch any potential MPR problems upfront. And this can help head off surprises later when underwriting.
Tips for Navigating VA MPRs Successfully
- Hire a VA-Savvy Real Estate Agent
Work with agents who understand VA requirements and can help identify homes that meet them from the start. - Consider a VA Pre-Appraisal Walkthrough
Before getting an official VA appraisal, some inspectors offer pre-checks to identify MPR issues. - Use VA-Experienced Builders
Whether you’re purchasing or building, stick with contractors who know VA standards. This helps ensure smoother approval, especially for VA approved builders. - Be Flexible
If your dream home doesn’t pass the MPR checklist, have a backup plan in place whether that’s requesting seller repairs or choosing a different property.
Final Thoughts
A working knowledge of VA Minimum Property Requirements can be the difference between a sale or purchase agreement and a rejection. Although these requests may appear unreasonable, they are in place to safeguard your investment as well as to provide a safe and habitable home.
And whether you’re seeking a cute little mobile home, plan on building new construction with a VA Construction Loan, or just checking out houses for sale with the intent of using a VA loan, knowing about MPRs can lead to better decisions. Of course, if you’re shopping in a veteran-friendly market like Texas, something like Modular Homes in Texas are going to be more within your reach if you meet the right criteria!
With the help of qualified lenders, real estate agents, and VA approved builders, you will move through the process with confidence and peace of mind knowing that you are a part of a supportive community.