Buying process
The VA appraisal and minimum property requirements
Short answer
Every VA purchase needs an appraisal by an appraiser VA assigns. It sets the home's reasonable value on a Notice of Value and checks the home against VA's minimum property requirements, which cover safety, soundness and sanitation. If the value looks low, the Tidewater process gives your lender a chance to send more sales before the report is final.
What the appraiser checks
- Safe, working heat for the climate
- Safe electrical and plumbing
- Roof with remaining life and no active leaks
- Hot water and safe drinking water
- No defective paint on homes built before 1978
- Access to each unit without going through another
- Adequate crawl space and attic ventilation
- No evidence of termites or structural damage
Older Chicago two-flats and bungalows often get flagged for peeling paint, missing handrails, or an aging boiler. Repairs can be negotiated with the seller before closing.
If the value comes in low
- Tidewater notice. Before finishing a low report, the appraiser tells your lender. The lender has two business days to send comparable sales.
- Renegotiate. Ask the seller to lower the price to the Notice of Value.
- Pay the gap. You can pay the difference in cash. The loan is based on the appraised value.
- Request a reconsideration of value. Your lender can submit new evidence to VA.
- Walk away. VA’s amendatory clause lets you cancel without losing earnest money if the price exceeds the appraised value.
Common questions
Is a VA appraisal stricter than a conventional one?
It adds a check against VA's minimum property requirements for safety and soundness. Most homes in reasonable condition pass.
Is the VA appraisal the same as a home inspection?
No. The appraisal protects the lender and VA. Get a separate home inspection, usually during Illinois attorney review.
Can I back out if the VA appraisal is low?
Yes. The VA amendatory clause lets you cancel without penalty if the price exceeds the appraised value.
Sources
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.