VA Appraisal Requirements in San Diego
Quick Answer
VA appraisal requirements in San Diego come down to three standards: the home must be safe, sanitary and structurally sound. The appraiser sets market value and notes readily apparent conditions that do not meet the VA’s Minimum Property Requirements. Cosmetic issues do not fail a VA appraisal. The conditions that typically do are active roof leaks, deteriorated paint on pre-1978 homes, termite or dry rot damage, exposed wiring, missing heat, standing water, unsafe stairs and access problems. For appraisals ordered on or after May 1, 2026, the VA updated five requirements, including removing radon certification and ending mandatory exterior paint repairs on homes built in 1978 or later. As of May 31, 2026, the average VA appraisal took about seven business days.
Sources: VA Pamphlet 26-7, Chapter 12, effective for appraisals ordered on or after May 1, 2026; VA News, June 25, 2026.
What This Guide Covers
- What a VA appraisal is, and what it is not
- What changed in the VA appraisal rules in 2026
- VA appraisal checklist: where San Diego homes get flagged
- What does not fail a VA appraisal
- When the appraiser calls for repairs, and who pays
- What if the VA appraisal comes in low?
- How long a VA appraisal takes
- Can a VA buyer purchase a fixer-upper?
- Frequently asked questions
One of the biggest misconceptions I hear from VA buyers is that a home has to be completely updated, or nearly perfect, to qualify for VA financing. That is not true. A VA buyer can purchase an older home, a cosmetic fixer, a house with an outdated kitchen, or a home that needs work after closing. The VA is not concerned about whether the countertops are new. What it cares about is whether the property is safe, sanitary and structurally sound, and that is where the Minimum Property Requirements, or MPRs, come in.
In San Diego we have everything from 1920s bungalows in North Park and University Heights to hillside homes in Bonita, converted garages across older Chula Vista, and rural parcels with wells and septic systems. Knowing what the appraiser is actually looking for lets us structure the offer correctly instead of getting surprised a week before closing.
What a VA appraisal is, and what it is not
A VA appraisal does two jobs at once. It establishes the home’s reasonable market value, and it flags readily apparent conditions that keep the property from meeting the VA’s Minimum Property Requirements. Once the report is reviewed, the lender or the VA issues a Notice of Value, or NOV.
Value and condition are separate issues. A home can appraise right at the price and still carry a required repair, or be in fine shape and appraise below the price. Those are two different problems with two different solutions, and I have seen buyers mix them up and negotiate the wrong one.
A VA appraisal is also not a home inspection. The VA says so in its own handbook: the appraiser notes readily apparent repairs but does not perform operational checks of mechanical systems or appliances. The appraisal protects the loan program. Your inspections protect you, so still plan on a general inspection and, where it fits, roof, sewer, termite, foundation, septic or well inspections. My guide to what to look for when viewing a house in San Diego covers the same red flags from the buyer’s side.
What changed in the VA appraisal rules in 2026
On February 27, 2026, the VA issued Change 46 to VA Pamphlet 26-7, the Lender Handbook, updating five Minimum Property Requirement topics in Chapter 12 for appraisals ordered on or after May 1, 2026. The VA publicized it in a VA News announcement on June 25, 2026, which is why a lot of coverage treats June as the effective date. It is not. The trigger is an appraisal ordered on or after May 1.
- Radon gas (Topic 34), removed. Radon resistant construction certification is no longer an appraisal condition. Testing is still a smart health precaution you can choose on your own.
- Homes built before 1978 (Topic 32), revised. Deteriorated paint on these homes can still be flagged because of possible lead-based paint.
- Homes built in 1978 or later (Topic 32), revised. Exterior paint defects are no longer subject to mandatory reporting and repair.
- Detached improvements (Topic 1), streamlined. Detached sheds, workshops and similar non-residential outbuildings no longer have to meet MPRs.
- Non-vented heaters (Topic 23), updated. The oxygen depletion sensor certification and the Veteran acknowledgment form no longer apply.
The three core standards did not change. What changed is the friction around them. The full current rules are in the VA Lender Handbook, Chapter 12.
Careful with older advice
A lot of VA appraisal content online was written before May 2026 and still describes the retired requirements as current. If a source tells you a backyard shed or the paint on a 1995 house will hold up your loan, it is describing rules that no longer apply.
VA appraisal checklist: where San Diego homes get flagged
Every property is different, but these twelve conditions come up over and over in local transactions.
1. Peeling or deteriorated paint on pre-1978 homes
After the 2026 update, paint is almost entirely a pre-1978 issue. On older homes, the appraiser may require deteriorated areas on siding, fascia, eaves, windows, trim, doors and attached garages to be prepared and repainted. That matters in North Park, Normal Heights, University Heights, City Heights and older West Chula Vista neighborhoods like Hilltop, where many solid homes have weathered trim. On newer homes in communities like Eastlake and Otay Ranch, exterior paint is no longer a required repair.
2. Roof leaks and moisture intrusion
The VA does not require a new roof. It requires one that keeps water out and has reasonable life left. Active leaks, missing or damaged material, staining from an unresolved leak, sagging, or a tarp will get flagged. Age alone is not the test.
3. Termites, fungus and dry rot
California is one of the states where the VA requires wood destroying insect information before the Notice of Value is issued. San Diego termite reports split findings into Section 1, active infestation or damage, and Section 2, conditions likely to lead to future damage. What must be corrected depends on the report, the lender and the conditions on the NOV. Get the termite picture early, because Section 1 work discovered late is how a small repair becomes a closing delay.
4. Exposed wiring and unsafe electrical
An older panel is not disqualifying. Exposed wiring, open junction boxes, missing panel covers, damaged outlets and improvised extension cord wiring are.
5. Missing or inadequate heat
Even in this climate, a home generally needs a permanently installed, working heat source. A portable space heater does not count.
6. Broken windows and missing doors
The home has to keep the weather out and be securable. A window that sticks is not the same as a window that is gone.
7. Missing handrails and unsafe stairs
Raised foundations, hillside lots, exterior stairs and decks are where this shows up. An obvious fall hazard will get called.
8. Standing water and poor drainage
Standing water or excessive dampness in a crawl space, grading that slopes toward the foundation, and hillside runoff hitting the house all get attention, especially on canyon and hillside lots.
9. Unpermitted additions and garage conversions
Unpermitted work does not automatically kill VA financing. The questions are whether it looks safe, affects the structure, creates a zoning or legal use problem, or was counted in the value. A professionally done conversion with safe electrical is a different animal from an improvised room with no heat and no safe exit. How that is disclosed and priced is in selling a home with unpermitted work in San Diego.
10. Plumbing, water and sanitation
Each unit needs safe water, hot water, working sanitary facilities and safe sewage disposal. Rural homes on private wells and septic, common across East County, get extra attention and may need documentation or inspections.
11. Private roads and legal access
A private road, shared driveway or informal easement means the lender and title company also need to confirm legally enforceable access. This comes up far more in rural East County than in a typical subdivision.
12. Pools, spas and obvious hazards
A pool does not need to be new. Stagnant water, an empty pool with dangerous conditions, or exposed electrical will get flagged.
A home that could not be financed until the condition was fixed
In summer 2025, I listed a rural home on about 20 acres in East San Diego County. It had sat vacant, and a roof leak had caused water damage. In that condition, only a cash buyer could purchase it. So I fronted the cost of the work that stood between the home and a loan: electrical, plumbing, the well inspection and repairs, the septic inspection, and the termite inspection and Section 1 clearance, while the owners paid for the water damage remediation directly. That work made the home financeable and opened it to financed buyers, and it closed at $700,000. My estimate is that as-is to a cash buyer it would have brought $300,000 to $400,000. For a VA buyer, that is the lesson: the conditions on this checklist are exactly what decides whether a home can be financed at all. More on that sale in selling a house with multiple owners in San Diego.
What does not fail a VA appraisal
| Likely to trigger a repair | Usually fine as is |
|---|---|
| Active roof leaks | An older roof that still works |
| Deteriorated paint on a pre-1978 home | Exterior paint on a post-1978 home |
| Section 1 termite or dry rot damage | Outdated kitchens and bathrooms |
| Exposed wiring or open panels | Older wiring that appears safe |
| No permanent heat source | No central air conditioning |
| Standing water in a crawl space | Worn flooring and dated fixtures |
| Missing handrails on real fall hazards | Cosmetic wall damage |
| Broken windows or missing doors | Dated windows that function |
| No legal access to the parcel | Detached sheds and outbuildings |
The VA is not asking the seller to renovate the house for you. The focus is safety, sanitation, structure, access and habitability.
Looking at an older home with your VA benefit?
I will walk the property with you and tell you which conditions are likely to get flagged before you write the offer.
When the appraiser calls for repairs, and who pays
When the appraiser identifies an MPR issue, the appraisal is typically issued subject to the repair. The work gets done, documentation or a reinspection is provided, and the loan moves forward. Most of the time the repair is small: repainting a section of fascia, replacing a pane of glass, adding a handrail, securing exposed wiring. The trouble starts when the issue surfaces late or the seller refuses.
The VA does not automatically require the seller to pay. It is a contract question: the seller completes the work, the price or terms are renegotiated, or in some cases the buyer pays for an allowable repair before closing with sign-off from the lender, seller and escrow. A seller credit alone generally will not cure an MPR condition, because the lender needs the repair completed and verified.
Your contingency timeline matters here. If the appraisal comes back subject to repairs and you are up against a removal date, your leverage changes fast. I break down how those deadlines interact in earnest money and contingencies in San Diego.
The repair waiver almost nobody mentions
Chapter 12 of the Lender Handbook includes Topic 44, Requests for Waiver of MPR Repairs. There is a formal process for a Veteran to request that a repair requirement be waived where the home is habitable and the lender concurs. It is not automatic and it is not for real safety hazards, but if you hit a repair standoff on an otherwise livable home, ask your lender about Topic 44 before you assume the deal is dead.
What if the VA appraisal comes in low?
The VA gives buyers two chances to challenge a low value that most other loans do not.
- Tidewater, before the report is final. If the appraiser expects the value to come in below the contract price, they have to notify the designated point of contact before finishing the report. That opens a two business day window to send additional closed comparable sales that support the price. This is where your agent’s comps matter most, and it is not a guarantee.
- Reconsideration of value, after the Notice of Value. Once the NOV is issued, the Veteran can request a reconsideration of value in writing, usually through the lender, to the VA Regional Loan Center. Supporting market data is encouraged.
If the value still comes in short, the options are to renegotiate the price, cover the gap in cash, or use the protection VA purchase contracts include if the price exceeds the appraised value. How seller credits fit into a VA deal is covered in VA closing costs and seller concessions.
How long a VA appraisal takes
The VA reported that as of May 31, 2026, the average VA appraisal was taking about seven business days. Timing still varies with appraiser availability, the property and whether repairs are needed, so build that into your contract timeline.
Can a VA buyer purchase a fixer-upper?
Yes, with an important line between a cosmetic fixer and a home that is not currently safe or habitable. Dated finishes, old cabinets, worn flooring and paint colors you hate usually work fine for a VA buyer, and that is often where the value is. No working kitchen or bathroom, major structural damage, active leaks, significant termite damage, no utilities or fire damage are a different category, and may need real work before a standard VA purchase loan will close.
The whole game is evaluating the likely appraisal issues before you write the offer, not after. If you are still sorting out the basics, start with VA loan eligibility in San Diego, and for condos, which also need VA project approval, see VA loans and condos in San Diego. The full picture is in my complete guide to VA home loans in San Diego.
Where many San Diego VA buyers look
In my experience, Chula Vista is one of the biggest areas for my VA buyers, and a big reason is location. Chula Vista sits just south of National City, close to Naval Base San Diego along the bay, and not far from Naval Amphibious Base Coronado and Naval Air Station North Island. Even East Chula Vista, in communities like Eastlake and Otay Ranch, is relatively close to those bases compared with a lot of other parts of San Diego County. It also gives VA buyers both sides of the paint rule: newer homes in the east, and older homes in West Chula Vista where pre-1978 paint is worth checking before you write. You can see what is on the market now across Chula Vista homes for sale.
How I help VA buyers avoid appraisal surprises
When I work with a VA buyer, I am reading properties for financing risk from the first showing, not waiting for the appraiser to find it. I am looking at paint on anything pre-1978, roof performance, damaged wood and termite evidence, whether there is a permanent heat source, exposed wiring, stairs and railings, garage conversions and additions, road access, septic and well systems, and how water moves across the lot.
I am not the inspector and I am not the appraiser. My job is to recognize when a property is going to create a financing problem, bring in the right people early, and structure an offer that actually reaches closing. Sometimes the honest answer is that a particular house is a poor fit for a VA purchase, and I will tell you that before you spend money on it. You can read what past buyers say about working with me on my client reviews page.
Frequently Asked Questions
What are the VA appraisal requirements?
A VA appraisal does two jobs. It sets the market value of the home, and it notes readily apparent conditions that do not meet the VA Minimum Property Requirements. The standard behind those requirements is that the home must be safe, sanitary and structurally sound. Cosmetic issues do not fail a VA appraisal.
What fails a VA appraisal?
The conditions that most often trigger a required repair are active roof leaks, deteriorated paint on homes built before 1978, termite or dry rot damage, exposed wiring or open electrical panels, no permanent heat source, standing water or drainage problems, missing handrails on real fall hazards, broken windows or missing doors, and a lack of legal access to the property.
What changed in the VA appraisal rules in 2026?
Change 46 to VA Pamphlet 26-7, issued February 27, 2026, updated five Minimum Property Requirement topics for appraisals ordered on or after May 1, 2026. It removed the radon gas requirement, revised the paint standards for homes built before and after 1978, streamlined the rules for detached improvements, and updated guidance for non-vented heaters. The VA announced the changes publicly on June 25, 2026.
Will peeling paint fail a VA appraisal?
It depends on when the home was built. Deteriorated paint on a home built before 1978 can still be flagged because of possible lead-based paint. For homes built in 1978 or later, exterior paint defects are no longer subject to mandatory reporting and repair under the 2026 update.
Are termite inspections required for VA loans in California?
Yes. California is one of the states where the VA requires wood destroying insect information before the Notice of Value is issued, so plan for a termite inspection on every San Diego VA purchase.
How long does a VA appraisal take?
The VA reported that as of May 31, 2026, the average VA appraisal took about seven business days. Timing still varies with appraiser availability, the property, and whether repairs are required.
What happens if a VA appraisal comes in low?
Before the appraisal is final, the VA Tidewater process requires the appraiser to tell the point of contact when the value looks likely to come in below the price. That opens a two business day window to send additional comparable sales. After the Notice of Value is issued, the buyer can request a reconsideration of value in writing through the lender. Otherwise the price can be renegotiated or the buyer can cover the difference.
Does a VA appraiser require every repair the home inspector finds?
No. A home inspector may list dozens of maintenance items and recommendations. The VA appraiser is focused on value and on readily apparent conditions that affect the Minimum Property Requirements, and the VA notes that an appraisal is not a home inspection.
Can a seller give a credit instead of completing a VA repair?
Usually not. A repair required by the appraisal generally has to be completed and verified before closing. A credit alone does not fix the condition of the property.
Who pays for VA appraisal repairs?
It is a contract question. The seller may complete the work, the price or terms may be renegotiated, or in some cases the buyer can pay for an allowable repair before closing with lender approval. The VA does not automatically require the seller to pay.
Can a VA buyer purchase a home with an unpermitted addition?
Possibly. Unpermitted work is not automatically disqualifying, but safety, zoning, legal use, marketability, valuation, insurance and lender requirements all have to be looked at together.
Can a required VA repair be waived?
Sometimes. Chapter 12 of the VA Lender Handbook includes Topic 44, Requests for Waiver of MPR Repairs, a formal process that can apply when the home is habitable and the lender concurs. It is not automatic and is not appropriate for real safety hazards, so ask your lender early.
Ryan Fisher
Realtor · Founder, Lovery Real Estate
I am a San Diego Realtor and the founder of Lovery Real Estate, with $56M+ in career sales across 90+ transactions. I work with buyers across Chula Vista, Bonita, North Park, University Heights, Normal Heights and La Jolla Mesa, and throughout San Diego County, including many military and VA buyers.
Before real estate I played professional baseball after being drafted out of UC Irvine. I grew up around Fisher Bros. House Moving, the fifth-generation California house-moving business my family ran from the 1850s, and worked in it myself before real estate, which is where I learned to look at a house structurally before cosmetically.
Here are your options, here are the numbers, here is what I would do. No pressure. No performance.
Buying with your VA benefit?
Let’s look at the property together before the appraisal does. I will tell you what is likely to get flagged and what we can do about it.
Ryan Fisher, Realtor. California DRE #02110091. Lovery Real Estate is a brand of Ryan Fisher, licensed under LPT Realty. 323 Minot Ave, Chula Vista, CA 91910. This article is general information and is not legal, tax, or lending advice. The VA and your lender determine appraisal requirements and loan approval. Value figures labeled as estimates are the owner’s estimates from past transactions and are not guarantees of future results. Consult appropriate professionals of your own choosing.