VA appraisal fees: What to expect

Are you an active-duty service member, veteran, or surviving spouse searching for the best possible deal on a home mortgage? You can’t do better than a VA loan , which remains one of the most preferred ways to get a low-cost mortgage – even without perfect credit or a down payment. 1 But as generous as this financing option is, some rules and costs apply. For example, you’ll have to pay for VA appraisal fees.

These mandatory fees are essential to determine whether your desired home is worth as much as the loan amount and meets the VA’s minimum property requirements, including standards related to adequate utilities and a roof in good condition. An appraisal is required for any type of mortgage, including the VA loan.

Read on to learn more about VA appraisal fees, who pays for VA appraisals, requirements around home inspections and canceled appraisals, and the appraisal timeline involved.

What is a VA appraisal fee?

If you want a home mortgage loan backed by the Department of Veterans Affairs – better known as a VA loan – you’ll need to pay VA appraisal fees to an appraiser. This expert will assess whether the property you want to purchase qualifies for this financing.

The appraisal fee covers both an evaluation to confirm your home’s value as well as a safety inspection to ensure that it’s suitable and livable as a primary residence. Your property’s living condition is based on the VA’s minimum property and occupancy requirements . The requirements include, but are not limited to, the following:

• How much living space the home provides.
• Whether hazards or pests exist that can damage the house.
• Whether the home’s structure is sound.

While a VA appraisal is similar to a home inspection in some respects, home inspections do not have minimum property requirements and are not mandatory to receive a VA loan or a conventional loan. A VA appraisal is not as extensive as a complete home inspection, but it is required to obtain a VA loan.

The VA appraisal process usually begins once you are under contract to purchase a home. Your lender will submit a request for an appraisal to the VA, which will assign an approved appraiser to assess the home. While the turnaround time for an appraisal is typically within just a few business days, the timeline differs between states and localities (more on that below). Your lender needs to begin the scheduling process as soon as possible after your home is under contract, in case there are delays in the process or the home requires repairs before your loan is approved.

Your lender is responsible for ordering the appraisal. But you, the buyer, are responsible for paying the VA appraisal fee up front unless you negotiate with the home seller to cover it.

You can expect to pay around $600 to $800 or more for a VA appraisal fee on a single-family home, which can differ depending on your home’s location. The cost will also vary based on whether the property is a detached residence, individual condo, manufactured home, or 2- to 4-unit multifamily home. Appraisers can additionally charge an extra $50 fee if the property is proposed or under construction and not yet completed.

You will pay these fees one time after you go under contract for the home, but not before you close on the property.

Appraisal fees by region

Here’s a breakdown of what you can likely expect to pay for the VA appraisal fee in different states, according to the latest data provided by the VA:

Who pays VA appraisal fees?

Is natural to wonder: Who pays for VA appraisal fees? Truth is, home buyers are usually responsible for these expenses.

However, you might be able to negotiate the cost of appraisal fees if the seller is highly motivated to sell and willing to give concessions , including seller credits.

“VA loan appraisal fees are considered part of the borrower’s allowable closing costs under VA guidelines. Unlike some conventional loans where sellers might cover appraisal costs, VA rules specifically require the eligible borrower to handle this expense – although sellers can contribute toward closing costs that include the appraisal fee,” says Stephanie Crawford, a licensed REALTOR® and broker/owner of Brokers Cooperative.

VA appraisal timeline

You should get an appraisal after your offer has been accepted by the seller. Your loan won’t be able to close without the completed appraisal report.

“VA appraisals are usually ordered shortly after you and the seller have signed the purchase agreement,” says Jeff Goodman, a licensed real estate agent at Brown Harris Stevens in New York City. “Typically, the process takes around 7 to 10 business days to complete, but it may take longer in rural areas. Factor this timeline into your contract deadlines.”

Indeed, appraisal timelines will depend on where you are located. VA home loan appraisals can be completed in as little as 7 business days in states and territories such as Arizona, California, Colorado, Florida, Georgia, Nevada, New Mexico, North Carolina, Ohio, Puerto Rico, South Carolina, Tennessee, Utah, and the U.S. Virgin Islands, while in other locations, including Alaska, Montana, and Guam, the process can take up to 21 business days. Many other states fall somewhere in between this range.

Let’s take a closer look at how long the appraisal can take from state to state, per the VA:

Note that sometimes a second appraisal is required if a home fails the first inspection and needs repairs to pass the appraisal. A reinspection fee is $150, per the VA.

Canceled VA appraisal assignment fees

If a lender must cancel a VA appraisal, they are responsible for notifying the assigned appraiser and the VA. The VA determines the amount the buyer must pay for a canceled appraisal based on the time and work the appraiser put into the project. The VA sets the schedule as follows:

• The appraiser can charge no more than $50 if the VA assigned the appraiser to assess a property but had not set the appointment date at the time of cancellation.
• The appraiser can charge no more than $175 if the appointment is canceled after the appointment date was set.
• The appraiser can charge no more than 50% of the assigned appraisal fee if they completed the property assessment but did not complete the appraisal report.
• The appraiser can charge the total assigned appraisal fee if they fully complete the appraisal report and upload it to the VA website portal.

“The VA appraisal cancellation fee is the buyer’s responsibility unless the reason for cancellation was a lender error or a shift in loan eligibility,” Goodman adds. “Keep in mind that appraisers are entitled to compensation for time and effort, even if the appraisal was not completed.”

The bottom line: Appraisal fees ensure your new home is up to standard

While a VA loan can save you serious dollars on home financing, there’s no getting around the mandatory VA appraisal required and the associated fees. Remember: The main functions of VA appraisals are to determine a home’s fair market value and to ensure the home is in a safe living condition for the buyer. Although the appraisal is similar in some ways to a home inspection, it is not as extensive. Getting a full home inspection by a professional is always recommended.

VA appraisal fees and the timeline for an appraisal’s completion differ depending on the home’s location, but you can expect to pay around $600 and up. Be sure to check the VA’s website to see if you live in a high-demand county affected by the rate increases.

Ready to pursue a VA loan? Start the mortgage approval process with Visto Mortgage ® today.

1 **** Visto Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Erik J. Martin is a Chicagoland-based freelance writer whose articles have been published by US News & World Report, Bankrate, Forbes Advisor, The Motley Fool, AARP The Magazine, USAA, Chicago Tribune, Reader’s Digest, and other publications. He writes regularly about personal finance, loans, insurance, home improvement, technology, health care, and entertainment for a variety of clients. His career as a professional writer, editor and blogger spans over 32 years, during which time he’s crafted thousands of stories. Erik also hosts a podcast (Cineversary.com) and publishes several blogs, including martinspiration.com and cineversegroup.com.

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