When purchasing a home with a VA loan, it is essential to understand the Minimum Real Estate Requirements (MPR), which are standards used by the VA to ensure that a home is safe, structurally sound, and sanitary.
Whether you’re buying a home in San Diego, California or Jacksonville, Florida, knowing these requirements in advance can help you avoid surprises during the appraisal process. This Redfin article details what MPR is, why it’s important, and what to look out for when buying a home with a VA loan.
What is MPR and why is it important for VA buyers?
The VA requires that homes financed with VA guaranteed loans meet certain minimum requirements to protect both the borrower and the lender. These criteria apply not only to the eligibility of the borrower but also to the condition of the property and are verified during the VA evaluation process. MPRs are not the same as local building codes, and meeting one does not guarantee compliance with the other.
A VA assessment checks MPR compliance, but it is not the same as a full home inspection. Many problems may not be discovered without an independent inspection. If the property does not meet the MPR, the loan may be delayed, require repairs, or be denied.
Key Real Estate Requirements for VA Appraisers
The main categories of requirements are listed below. By understanding each, you can evaluate real estate with confidence.
Residential use and marketability
The property must be used primarily as a residence and not a commercial building. Limited non-residential uses, such as small home offices, are permitted, but the primary purpose must be residential. Zoning must also allow for residential use.
The property must also be marketable with clear title, legal access, and no restrictions that prevent resale.
sufficient living space
A home must have enough space for living, sleeping, cooking, eating, and hygiene. For example, a studio apartment is fine as long as it has dedicated areas for cooking, sleeping, and hygiene. The same principles apply for multi-unit properties (up to 4 units). This means that the property must function primarily as a residence.
Safe and functional mechanical systems and utilities
Your home must have functioning and safe mechanical systems.
Electrical: A safe and functional electrical system with no exposed wiring or fire hazards. Heating: A permanent and adequate heating system capable of maintaining habitable temperatures in all rooms. Portable space heaters do not qualify as a permanent heat source. Air conditioning is not required, but if installed, it must be working properly. Water and Sewerage: Safe water supply and sanitary waste disposal systems, whether public or private. Private wells and septic systems must meet local health standards.
roof, structure, foundation
The roof does not need to be new, but it should be in good condition with no ongoing leaks and a reasonable remaining lifespan.
The foundation and structure must be sound and free from significant settlement, cracks, and instability. Crawl spaces and basements must be accessible, dry, and free from conditions that could cause damage to the home.
Site conditions, access, and environmental factors
The property must have safe, all-weather access via a public or private road with a legal easement. The site must be properly drained and free from significant risks such as flooding, cave-ins, and erosion.
The property also must be free of environmental hazards, such as lead-based paint, mold, rot, or infestation.
Additional MPR Rules for Manufactured Homes and Modular Homes
Manufactured and modular homes must comply with state and VA standards, be permanently attached to a foundation, and meet HUD code requirements. Many single-wide homes are at least 400 square feet. This is not because VA sets a specific minimum value, but because the HUD standard requires it.
How the VA assessment and MPR review process works
Choosing a home: When shopping, avoid homes with obvious problems, such as damaged roofs or unsafe wiring. Offers and contracts: Include clauses that allow for withdrawal or renegotiation if the evaluation indicates MPR violations. VA Appraisal: The lender orders an appraisal from a VA-certified appraiser who checks both value and MPR compliance. Appraisers are not complete home inspectors. Evaluation Report: The report will list items that do not meet requirements and require repair. Repairs or concessions: The seller may be able to fix the problem, negotiate a credit or repair agreement if the lender allows, or you can walk away if repairs are not possible. Final Approval and Closing: If the property meets all MPRs or the VA grants certain exemptions, the loan can close.
Common MPR issues that can delay your VA loan
Damaged or leaking roofs Outdated or unsafe wiring or HVAC systems Problems with water or septic systems Lack of legal access to the property Environmental hazards such as mold, lead paint in pre-1978 homes, or pest infestations Inadequate living space or unsafe layout
Tips for VA buyers
Work with a real estate agent or lender who has experience with VA loans. It will help you recognize warning signs early. Before you make an offer, ask questions about the roof, foundation, plumbing, and electrical systems. In addition to the VA evaluation, be sure to get a full home inspection. Negotiate that the seller complete any necessary repairs before closing, or negotiate a credit or repair agreement if your lender allows. Be wary of “as is” properties. Many fail the MPR and cannot be funded with a VA loan. If it’s a manufactured or modular home, make sure it’s properly classified as real estate and meets all structural requirements.
FAQ: VA minimum property requirements
1. Does the house need to be brand new?
no. The Veterans Administration does not require that the home be new construction or completely renovated. All we require is that it be safe, functional, and have reasonable future utility.
2. Can the Veterans Administration waive certain requirements?
In rare cases, minor issues may qualify for a waiver, but this is not common. Typically, exemptions are only considered if the problem does not affect safety and the home still provides “reasonable future utility.” Most properties must meet all MPRs before closing.
3. Can I buy a condo with a VA loan?
Yes, but condominium projects must be approved by the Department of Veterans Affairs and the units themselves must meet all real estate standards.
4. Can I purchase multi-unit real estate?
yes. You can purchase up to four units with a VA loan. But only as long as you live in one unit and all units meet the MPR.
5. What about homes located near flood zones or hazards?
Homes within designated flood zones may be required to purchase flood insurance. Some high-risk flood zones have additional eligibility requirements, requiring environmental risks to be reduced or eliminated before a loan can be approved.
