You secured the land, selected a builder, and secured your VA approval. You then went through the appraisal, only to find a shed, a missing radon certificate, and a paint repair condition in a newly built home. Your closing was delayed. Your builder was forced to move their construction timeline. Your rate lock started to expire.
Veterans were experiencing this for years. Old VA appraisals that don’t fit current building codes waste a vet’s time and money. Moreover, they prevent new buildings from being built.
All that ends on May 1, 2026.
The VA is eliminating five property requirements to help speed up construction timelines. The above will save time and make it easier for any home builders who intend to build with a VA construction loan.
In this blog, we look at what has changed and what remains the same, and what you should do now to prevent your appraisal from impacting your build.
Key Highlights of This Blog:
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Breakdown of the 2026 VA appraisal rule changes and why they matter
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The 5 MPR requirements eliminated and how they impact your build
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What appraisal standards still apply to new construction homes
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Step-by-step explanation of how VA construction appraisals work
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Timelines, costs, and what to expect during the appraisal process
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How the updates improve VA One-Time Close (OTC) construction loans
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What to do if your appraisal comes in low (ROV & Tidewater insights)
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Practical tips to avoid delays and protect your construction timeline
When Did the VA Appraisal Changes Go into Effect?
As of January, new rules (VA circular 26-25-14) modified the property standards for new appraisals and construction loans. All VA MPR 2026 changes have been implemented.
Lenders and builders should review the 2026 VA property changes before ordering new appraisals.
The Problems the VA Was Solving
Several MPR rules were not updated for many years. Outdated rules only added costs and delays without improving safety.
The VA eliminated five unnecessary or obsolete elements from its property standards checklist.
The 5 MPR Requirements Removed in 2026
The VA also removed 5 specific items from its appraisal checklist. The five requirements only slowed down construction loans, but did not provide any protection for the veteran.
Radon Certification for New Construction — Eliminated
No more radon testing or certification required for new construction by VA appraisers. The VA now accepts local codes and EPA regulations for radon testing in new construction. Veterans are still allowed to test on their own.
Sheds and Detached Structures — No Longer Evaluated
Structures detached from the home (e.g., sheds, workshops, garages) will not be considered by MPR. These structures were previously appraised for safety and condition. This task has been eliminated. Only the main dwelling will be appraised.
Oxygen Depletion Sensors for Non-Vented Heaters — Removed
Oxygen depletion sensor, required as a VA condition, on a non-vented gas home appliance. Omit this requirement; the current heating equipment already has a more adequate safety device.
Paint Repair Standards — Simplified for Post-1978 Homes
VA used to require appraisers to identify failing paint in any home. Only in homes built before 1978 is a concern about lead-based paint warranted, so the rule now applies only to pre-1978 homes. In homes built after 1978, all new construction falls into this category; the condition of the paint on the surface is not an MPR issue.
What Stayed the Same?
The basic VA standards for a safe, sanitary, structurally sound condition haven’t changed. All essential systems, as well as the roof and utilities, will still need to be verified by appraisers to be safe and in working condition.
The VA has not lowered its safety standards. It has only deleted rules that it already protects against with its own code.
How the VA Construction Appraisal Works?
The VA appraisal for a new construction build is different from a typical purchase appraisal. It is based on the building process.
The As-Completed Appraisal Explained
It’s quite common for the VA to require an as-completed appraisal before they even break ground. The appraiser reviews plans and builder’s specs to determine the home’s value as a complete home.
The calculation is important because the bank you borrow from uses it to determine the loan amount before construction begins.
What Happens if the Appraisal Comes in at Value vs. Below Value?
Once you receive an “as-completed” appraisal that equals or exceeds your loan amount, construction can begin. If the appraisal is lower than the offer price, you can decrease the offer price, pay the difference, or protest.
VA can never allow a guaranteed loan above an appraisal.
Draw Inspections during the Build
Lenders will call for inspections at key stages of construction, such as foundations and framing. The inspector verifies at each stage that the construction complies with the building plans. The lender releases payment to the builder only after each inspection passes.
The Notice of Value (NOV)
When construction is completed and the final inspection is approved, the VA sends you and the lender a VA Notice of Value. The NOV confirms the appraised value of the finished home. Your lender needs it to close the loan; without a NOV, the loan can’t close. Therefore, a precise time for the final inspection is very important.
VA Appraisal Timelines and Fees in 2026
Knowing the timeline and total costs helps veterans avoid the two biggest mistakes when planning a construction loan. Here are the current figures before you get your build scheduled or locked into your final budget:
How Long Do VA Appraisals Take Now?
VA construction appraisals typically take 10-20 business days. They usually take longer than typical purchase appraisals. This is due to the blueprints and specs the appraiser will need to review and evaluate for its value.
You may encounter longer turnarounds of 30 days for properties in high-demand areas or in rural areas with limited numbers of VA appraisers. Take this added timeframe into account on the front end of your construction project.
VA Appraisal Fee Breakdown for Construction Loans
The VA establishes maximum appraisal fee limits by State and property type. For a new construction loan in 2026, you can expect the fee to be around $600 to $1,300, depending on the location and difficulty of the new construction.
Complex custom homes with numerous special features and large square footage will command higher fees. The fee is due when the appraisal is ordered and is non-refundable, whether or not the loan closes.
High-Demand Counties — What Veterans Should Know
In high-demand areas with a limited number of appraisers, the VA may have some leeway on fees and timelines. This allows for a higher appraisal fee or a longer time frame necessary to secure an available appraiser.
For competitive markets, ask your lender for any local appraiser flexibility orders before ordering.
How the 2026 Appraisal Updates Affect VA One-Time Close Construction Loans?
A VA One-Time Close (OTC) construction loan is the most common route for veterans to build. Here, the building loan and final mortgage are consolidated into a single application, a single fee, and a single interest rate.
The VA one-time close appraisal works with the as-completed model. Still, its success matters more because your permanent loan depends on the same appraised value.
VA MPR changes in 2026 streamline the OTC process directly. Getting rid of radon and detached structure reviews makes appraisals much faster.
In addition, eliminating unnecessary paint repairs to newer houses avoids other frequent delays. About OTC loans, they offer much less hassle and a quicker path to your new mortgage.
What to Do if Your VA Construction Appraisal Comes in Low?
A bad appraisal doesn’t mean you are done for. There are definitely things you can do.
Reconsideration of Value (ROV) — How It Works in 2026?
In 2024, the VA refined its ROV procedures. That refined process is effective until 2026. Certain lenders and appraisers will rely on the VA’s Tidewater Initiative for new construction loans. The Tidewater Initiative is where you can submit comps to the appraiser before the final appraisal is completed. You cannot do so after.
When an appraiser anticipates a low value, they send “comps” requests to the lender through Tidewater. This puts you in the driver’s seat early on.
If the appraisal value comes in low after Tidewater is invoked, you would then submit a formal ROV to the lender. This package should contain:
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The appraiser does not consider new comparable sales.
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Factual errors in the appraisal (e.g., square footage, features that are not there, or incorrect lot size).
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Comps for new construction in the same subdivision or from the same builder.
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A letter stating how specific features increased the property’s value.
The appraiser reviews the ROV and either adjusts the value or explains why it stands as is. If that doesn’t satisfy you, the issue can be referred to the VA Regional Loan Center for second-level review.
How to Prevent a Low Appraisal Before It Happens?
This is cheaper and quicker than an ROV. Follow these steps before an order is placed for an appraiser:
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Provide your lender with a complete spec sheet and feature list from your builder when you order the property. We now have sufficient information for the appraiser to value the property in accordance with VA guidelines.
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Provide your lender with recent construction sales prices in your area before they order the appraisal.
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Do not build something in a very large oversupply for the area. $600k for a custom build in a $380k area will more often than not appraise low.
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Use a builder who has a strong reputation for obtaining VA appraisal approvals in your county.
Ready to Build with a VA Construction Loan? Here’s Your Next Step
These 2026 VA changes will speed up closings for veterans by removing old appraisal methods. The process can still be time-consuming due to completed appraisals, draw inspections, and possibly ROV.
One slip-up could put your build off schedule for weeks and cost you tens of thousands in needless expenses. VA Construction Loan works with Shirley Mueller, a national expert on veteran custom home financing.
Using the local market and the 2026 VA Minimum Property Requirements, Shirley will help you build from plan to Notice of Value.
Don’t take your custom home into your own hands alone. Schedule your Free VA Construction Loan Consultation Today.
Frequently Asked Questions
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How Long Does A VA Appraisal Take For New Construction In 2026?
10-20 business days should be expected in most markets. Your appraiser will need your builder’s plans and specifications to estimate the property’s value. Therefore, this takes longer than the average home appraisal. Some markets or highly desired rural counties can take 30+ business days, so factor this time into your build schedule upfront.
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Will Cosmetic Issues Still Delay My VA Construction Loan?
For houses constructed in 1978 and later, paint condition is no longer a VA MPR concern (May 1, 2026). Cosmetic flaws (scuff marks, unlandscaped yards) don’t usually trigger appraisal conditions. However, building codes, safety requirements, and lead paint (pre-1978) requirements still exist.
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When Is The Appraisal Done For A VA Construction Loan?
An appraiser reviews your plans before you build, then performs a final check later to ensure everything was completed as planned. The VA issues the Notice of Value (NOV), which the lender uses to close the permanent loan.
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Is Radon Certification Still Required For New Construction VA Loans?
No. On May 1, 2026, the VA eliminated the radon certification requirement for new construction. Your local building code jurisdiction may require its own radon code. Still, radon certification is not a requirement for a VA appraisal.
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Can I Challenge A Low Appraisal On A VA Construction Loan?
If the report value is too low, Tidewater allows you to provide revised data for up to 48 hours before the report becomes firm. If the report has already been finalized, you can file an ROV to add or correct it.
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Does A VA Appraisal Replace A Home Inspection?
No. A VA appraisal only checks value and basic standards, not specific details. For new homes, hire your own inspector to check the structure and systems before your final walkthrough.
