Roofs and Moisture VA Home Loan

NC has been pretty dry in the Raleigh area this fall, but other parts of our state, like the Winston Salem, Triad, have seen many rainy days.  That rain, on an older home, can cause moisture problems that the Veterans Administration is possibly going to have a problem with.  I’m writing this because we have so many Veterans contacting us about a Cash-out Refinance, and we’ve seen some of these issues.    When there’s moisture trapped in the roof, sometimes it’s caused from a flashing problem.  In fact, one of our neighbors replaced their roof because they had a leak, then found it still leaking when it rained the next time!  These kinds of moisture issues can more complicated when you are applying for a VA Home Loan, because the Veteran’s Administration guidelines to the VA Appraiser about Roofs and Moisture VA Home Loan are very specific.

Roofs and Moisture VA Home Loan

Unlike Conventional Loans, VA’s Minimum Property Requirements specifically require that the appraiser do their best to identify the roof for “wear,” for dry rot, leaks, poor ventilation or a roof that might not be built to code.

The Appraiser is required to report on what is “observable and apparent.”  If there’s no sign of leaking, but there are areas that are worn – the appraiser would not necessarily request an inspection to determine if the Roof is nearing the end of it’s Economic Life, and should be replaced.  

VA Home Loan Appraisers are generally asked to determine that the roof has at least five or six years of viability remaining before it would need to be replaced.

In considering how long the economic life is of a roof, any apparent moisture issues could be a determining factor – as it could affect the structural soundness of the roof.  The Veteran’s Administration doesn’t ask the VA Appraiser to crawl on a roof, the way an Inspector might.

The VA Appraiser is required to make notations on the appraisal about what was “apparent” – and any noticeable moisture conditions must be written up as comments on the appraisal report.

If you read the VA Appraiser forums, you’ll note that the Appraisers tell consumers over and over that the Appraisal is not a guarantee of the soundness of the home.  Just what a reasonable value is.  Because of that – we always recommend that Veteran’s have a Home Inspection done.  When you get that back, if you’ve written your contract correctly, you should be able to negotiate corrective measures from the Seller.

If the VA Appraisal notes that an inspection is required, and IF the Inspection report agrees that corrective measures are required… then the Seller must make those corrections before closing.  We can’t escrow money for a new roof to be done after closing, or for it to be fixed.  They can not just issue a credit for it.  If the Appraisal and the Inspection show that the roof has a problem – it’s got to be resolved prior to closing.

The same thing is true, frankly with any other item you might see – like wood rot, or pooling water in a crawl space or Basement. We’ve had a pretty wet summer – but that’s not going to make a huge difference.  The VA Appraiser is required to note ANY “excessive dampness’ in a home.  

Who Can Pay for the VA Home Loan Appraisal?

If you are buying a house, and there are repairs required on the Notice of Value, and you think it[s wrong – there’s a process we can go through to get a second appraisal done.

• The veteran can pay for a second appraisal if he or she is requesting a reconsideration of value.
• The veteran cannot pay for an appraisal requested by the lender or the seller for reconsideration of value.

So, if the appraiser is stating that the roof needs inspecting by an Engineer, or it needs to be replaced – the option of getting anther appraisal is possible.  However, it’s not LIKELY that another VA Appraiser is going to say the roof is OK

Buying An Older Home With A VA Home Loan

There are some minimum property requirements that you will need to look through, and the home must meet the local and NC State building codes (which is expected).  You’ll also want to check the structure to be sure that the components have an adequate “remaining economic life.”

The Veteran’s administration is not going to make a loan on a house where the roof (for instance) will need to be replaced next month.  They also don’t want to make a loan where the property is about to included in an area that is obviously turning Commercial, or a neighborhood that has poor construction and extremely high foreclosure rates.

VA loan rules don’t specifically reference the age of a home in terms of whether it would be acceptable for a VA mortgage or not. Instead, the real issue is whether it meets VA minimum property requirements, state and/or local building codes, and whether the property has what’s known as “remaining economic life”.

Cash-out Refinance for VA Home Loans

VA Cash Out Refinance: For the veteran with equity in their home, a VA cash out may allow you to put some of that money to work as needed. For those with good credit, the current rates on a VA Home loan are generally below 4.0% (4.24% APR)!  You may be able to use these equity funds to to make costly home improvements, pay college tuition, or enjoy a cruise around the world. It is your choice.  Fortunately, in North Carolina most properties are continuing to appreciate and build equity.  One of our clients called today, who lives in Knightdale.  She purchased a home fr $140,000 in 2015, and Zillow says her home might be worth $30k MORE!

Are you a Veteran looking for a VA home loan in North Carolina?  We’d love to help!  If you think now might be the time to Refinance call us!  During the Month of November, as a thank you to Veterans,  WE PAY FOR YOUR APPRAISAL!  Call Steve and Eleanor Thorne 919 649 5058.  We will be glad to help you determine if you are going to have Roofs and Moisture problems with your VA Home Loan!