Because a VA loan guarantees the loan and not the property itself, an inspection is not required in order to receive a VA loan, according to the U.S. Department of Veterans Affairs. However, an inspection of plumbing, heating and electrical systems as well as roofing is suggested.
VA loans do require an appraisal, which estimates the value of the home, as stated by the U.S. Department of Veterans Affairs. Appraisers compare the property with other similar properties in the area that have been sold in the last 12 months. An appraisal for a VA loan also ensures that the property meets the VA's minimum property requirements, according to Veterans United Home Loans.
Although not as extensive as an inspection, an appraisal ensures that the roof is in good shape and the basement and crawl spaces are dry; that the electrical and plumbing systems are in good working order and the heating system is functional and safe; and that there are no hazardous conditions, such as exposed wiring, rotten beams, missing stairway railings or lead-based paint. An appraisal may also test for the presence of termites. The result of the appraisal is a report, which states the value of the home as well as a list of repairs, if any, that are needed for the property to meet the VA's MPR, states Veterans United Home Loans.