One of the most common points of confusion in a VA home purchase happens before closing and sometimes after. Buyers assume the VA appraisal is the same thing as a home inspection. It is not, and understanding the difference matters.
The VA Appraisal Has One Job
A VA appraisal exists to determine the market value of the home and confirm it meets the VA's Minimum Property Requirements (MPRs). That's it. The appraiser is not inspecting the condition of the home in the way a licensed home inspector would. They are not crawling through the attic, testing every outlet, or evaluating the age of the HVAC system in detail.
What they are doing is confirming the home is safe, structurally sound, and sanitary enough to meet VA standards and that the value supports the loan amount.
Why This Confusion Causes Real Problems
I had a buyer who discovered an issue with the home after closing. Their first reaction was frustration… the VA had appraised the house, so why didn't they catch it?
We went back to the disclosure they had signed prior to closing, which stated clearly that the appraisal does not guarantee the condition of the property. That documentation exists for exactly that reason. I also had to remind them of the conversation we had before closing where I informed them of this exact fact.
That's on me to make sure every buyer understands upfront: get a home inspection. The appraisal and the inspection serve completely different purposes and skipping the inspection because "the VA already looked at it" is a mistake that can cost you far more than the inspection itself.
What Happens When the Appraisal Comes in Low
This is where VA buyers have more protection than most people realize and more options than most lenders explain.
If the appraised value comes in below the purchase price, VA buyers have two formal opportunities to challenge it.
The first is Tidewater. This is triggered before the appraisal is even finalized. If the appraiser believes the value may not support the purchase price, they issue a Tidewater notice and request additional comparable sales from the lender and real estate agent. It's a chance to provide better data before the number is locked in. I've had success at this stage by coming in with strong comps the appraiser hadn't considered.
The second is the Reconsideration of Value (ROV). This happens after the appraisal is complete. If the value comes in low, the buyer and lender can formally request a reconsideration and submit evidence — comparable sales, market data, relevant factors the appraiser may have missed. It's not a guarantee, but it's a real process with real teeth, and I've had success here too.
Most buyers don't know either of these options exist. Most are told the appraisal came in low and that's that. It isn't always that.
One More Thing Worth Knowing
The VA uses the same appraisal standards as other loan types. In theory, a home's appraised value should be the same whether the buyer is using a VA loan, a conventional loan, or FHA financing. The idea that VA appraisals are stricter or that VA buyers are somehow harder on sellers from an appraisal standpoint is a misconception and one worth pushing back on when you hear it from listing agents.
