VA Loan Myth Busted: Why VA Appraisals Don’t Lowball Home Values!

by Skylar St. Pierre

Many veterans worry that VA appraisals will undervalue the homes they want to buy, making it harder to secure a fair deal. This common myth has created unnecessary concerns about using VA loans. The reality? VA appraisals are not designed to lowball home values—they aim to ensure the property is safe, livable, and fairly priced. In this blog, we’ll debunk the myth about VA appraisals and explain how they align with conventional appraisals.

The VA Loan Myth

Myth: VA appraisals always come in lower than market value, making it harder to buy a home with a VA loan.
Fact: VA appraisals are designed to ensure the home is safe and market-ready, not to undervalue it.

What Is a VA Appraisal?

A VA appraisal is required for any home purchased with a VA loan. It serves two main purposes:

Ensure the Property Meets VA Standards

The VA appraisal checks that the home meets Minimum Property Requirements (MPRs), ensuring it is safe and livable.

Determine Market Value

Just like a conventional appraisal, the VA appraisal assesses the property’s market value using comparable sales in the area.

Why VA Appraisals Don’t Undervalue Homes

Based on Comparable Sales

Like conventional appraisals, VA appraisals use local sales data to determine fair market value.

Ensures the Home Is Safe

The focus is on making the property safe and market-ready, not undervaluing it. Any lower appraisal values are typically tied to safety or structural concerns.

Opportunity for Reconsideration

If the appraisal comes in low, you can request a Reconsideration of Value by providing additional information to support a higher valuation.

Conclusion: VA Appraisals Don’t Lowball Home Values

VA appraisals are fair, thorough, and designed to protect both the veteran and the lender. They follow the same valuation process as conventional appraisals, ensuring the home is safe, livable, and fairly priced. If a VA appraisal comes in low, there are ways to address it, including requesting a reconsideration of value.