A VA appraisal and a conventional appraisal both estimate what a home is worth, but the VA version also inspects the property against the Department of Veterans Affairs’ Minimum Property Requirements and gives the buyer protections a conventional appraisal doesn’t carry. That’s the core of the VA appraisal vs. conventional appraisal question: scope, protections, and a few practical differences in cost, timing, and repairs that follow from it.
What Each Appraisal Is Actually Checking
A conventional appraiser’s main job is figuring out whether the sale price lines up with what comparable homes nearby have recently sold for. The report has to give “a clear, detailed, and accurate description of the improvements” and note needed repairs, but the emphasis is on marketability rather than habitability.1Fannie Mae. Improvements Section of the Appraisal Report A cracked window, an aging but functional roof, or dated fixtures typically show up as a downward value adjustment, not a repair demand. The question the appraiser is answering is whether the condition creates market resistance compared to competing homes.
A VA appraiser does the same value analysis and then some. The VA Lender’s Handbook requires every property to be “safe, structurally sound, and sanitary” before the VA will guarantee the loan.2VA Benefits Administration. VA Pamphlet VAP26-7 Chapter 12 Minimum Property Requirement Overview The appraiser walks the property looking for defective conditions: continuing foundation settlement, excessive dampness, leakage, decay, evidence of termites, frayed wiring, missing handrails, standing water in crawl spaces, and roofs near the end of their useful life. Homes built before 1978 get checked for deteriorating lead-based paint, which must be stabilized before closing.3U.S. Department of Veterans Affairs. Circular 26-16-37 – Requirements for Notification, Evaluation, and Reduction of Lead-Based Paint Hazards Many states also require a separate wood-destroying insect inspection.4Department of Veterans Affairs. Local Requirements – VA Home Loans
One frequently cited MPR: if a home relies on a wood-burning stove as its primary heat, it must also have a permanently installed conventional heating system capable of maintaining at least 50 degrees Fahrenheit in every area that contains plumbing. Cosmetic issues and normal wear shouldn’t hold up a VA closing. Scuffed floors and faded paint aren’t the appraiser’s concern. Anything that compromises the structural envelope, creates a health hazard, or impairs basic functionality gets the appraisal marked “subject to” completion of specific repairs.
The VA is clear that an appraisal is not a home inspection. The appraiser doesn’t test every appliance or system. Buyers on either loan type who want that level of scrutiny should hire an independent home inspector.
Who Picks the Appraiser and What It Costs
On a VA loan, the lender uploads the contract through the VA’s portal and the VA assigns a fee appraiser from its pre-approved regional panel. The lender does not choose the individual. Fees are set by the VA’s Regional Loan Centers and vary by state and county, with published caps the appraiser cannot exceed. Proposed or under-construction properties carry an extra $50, and re-inspection after repairs costs $150.5Department of Veterans Affairs. VA Appraisal Fee Schedules and Timeliness Requirements In high-demand counties with appraiser shortages, the VA temporarily raises allowable fees.
Conventional loans route the order through an Appraisal Management Company. The lender picks the AMC but not the specific appraiser, and federal regulations bar anyone with a financial interest in the deal from influencing the appraiser through coercion, compensation, or instruction.6Consumer Financial Protection Bureau. 12 CFR 1026.42 – Valuation Independence Conventional fees aren’t capped the same way. A standard single-family home generally runs $500 to $1,000 depending on the metro area, with rush orders or unusual properties pushing higher.
On VA loans, the lender is responsible for paying the appraiser within 30 days of billing, and late fees can’t be passed to the veteran.5Department of Veterans Affairs. VA Appraisal Fee Schedules and Timeliness Requirements In practice, buyers usually pay upfront at application or as part of closing costs. Conventional borrowers almost always pay at the time the appraisal is ordered.
What Happens If the Value Comes In Low
This is the biggest practical difference between the two products.
On a VA loan, if the appraiser thinks the home will come in under contract, the appraiser has to trigger the Tidewater process before finalizing the report. The appraiser contacts the lender’s designated point of contact and gives them two working days to submit additional comparable sales or market data supporting the higher price.7Department of Veterans Affairs. Circular 26-17-18 – Procedures for Improving Communication with Fee Appraisers The real estate agent or loan officer can supply data in a format similar to the comparable sales grid on the standard appraisal form. If the appraiser still can’t get to the contract value, the buyer can ask the lender to request a formal Reconsideration of Value from the VA, submitting a package that shows missed comparable sales or factual errors about the property.
Every VA purchase contract must also include the VA escape clause, a federally mandated provision that no party can waive. If the appraised value comes in below the contract price, the buyer can walk away and recover their full earnest money deposit, or they can proceed and cover the gap out of pocket.8Department of Veterans Affairs. VA Escape Clause – VA Home Loans The clause is codified at 38 CFR 36.4303(k)(4) and exists because VA loans allow zero down, leaving the borrower without an equity cushion if they overpay.
Conventional borrowers can also challenge a low appraisal. Fannie Mae and Freddie Mac published joint requirements in 2024 formalizing a borrower-initiated Reconsideration of Value process.9Fannie Mae. Reconsideration of Value (ROV) The lender reviews the evidence and decides whether to send it back to the appraiser. There is no federally mandated response window, and timelines depend on the lender.
There is no conventional equivalent to the VA escape clause. Whether a conventional buyer can walk away and keep their earnest money depends entirely on the appraisal contingency language in the purchase contract. A buyer who waived that contingency to win a competitive bid is left choosing between covering the gap, renegotiating with the seller, or losing the deposit.
Repairs Required Before Closing
If a VA appraisal flags MPR repairs, someone has to pay for them before closing. It doesn’t have to be the seller. VA buyers can pay for MPR repairs themselves if the seller refuses, though some lenders require a hold-harmless agreement first. For larger repairs, many lenders want underwriting approval or a clear-to-close before work begins, and some jobs can be handled after closing through an escrow holdback, where the borrower deposits roughly 1.5 times the estimated repair cost. That flexibility matters in markets where sellers won’t repair or credit.
Conventional appraisals rarely mandate repairs at all. Because the appraiser adjusts value for condition, the deal usually moves forward as-is. The exception is when damage or a hazard is severe enough to compromise the lender’s collateral position.
How Long the Appraisal Lasts and Whether It Moves With You
A VA appraisal is valid for 180 days from completion and cannot be extended. If closing slips past six months, the lender orders a new one. VA appraisals are portable: if you switch lenders, the new lender can request a transfer of the VA case number, which links the property and appraisal record to your file.
Conventional appraisals under Fannie Mae guidelines are valid for up to 12 months from the effective date, but if the appraisal is more than four months old at the note and mortgage date, the lender must order an appraisal update including an exterior inspection and current market analysis.10Fannie Mae. Appraisal Age and Use Requirements Desktop appraisals expire after four months with no update option. Conventional appraisals are generally tied to the lender that ordered them.
Can You Skip the Appraisal?
On the conventional side, sometimes yes. Fannie Mae calls it “value acceptance,” and certain loan files that clear automated underwriting are offered the option to skip the appraisal. Eligible transactions include purchases and refinances on one-unit properties used as a principal residence or second home, with a property value under $1,000,000.11Fannie Mae. Value Acceptance Waivers aren’t available for two- to four-unit properties, co-ops, manufactured homes, new construction, or manually underwritten loans, and a value acceptance offer expires four months from the note and mortgage date. Skipping the appraisal saves $500 to $1,000 and can cut a week or more off closing, but no one physically inspects the property for the lender. An independent home inspection becomes especially worth the money in that scenario.
VA loans have no waiver. Every VA purchase requires a full appraisal by a VA-assigned fee appraiser, regardless of credit, loan-to-value ratio, or the property’s data history.
Quick Comparison
- Property standards: VA enforces Minimum Property Requirements covering safety, structural soundness, and sanitary conditions. Conventional focuses on marketability and adjusts value for deficiencies rather than requiring repairs.
- Appraiser assignment: VA assigns from its own fee panel. Conventional uses Appraisal Management Companies.
- Low-appraisal protections: VA offers the Tidewater process and a mandatory escape clause protecting earnest money. Conventional buyers rely on the appraisal contingency they negotiated.
- Validity: VA appraisals last 180 days with no extension. Conventional appraisals last up to 12 months, with a required update after four.
- Waiver option: Conventional loans may qualify for value acceptance. VA loans always require an appraisal.
- Repairs: VA appraisals can require repairs before closing that either buyer or seller can pay for. Conventional appraisals almost never require repairs.
- Transferability: VA appraisals move with the property through the case number and transfer to a new lender. Conventional appraisals are generally tied to the lender that ordered them.