Until recently, a VA appraisal on new construction could come back with conditions for a shed, a missing radon certification, or paint touch-ups, and each one could delay closing.
For VA appraisals ordered on or after May 1, 2026, VA removed four of these property requirements. That means fewer appraisal conditions for veterans building 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:
Breakdown of the 2026 VA appraisal rule changes and why they matter
The 4 MPR requirements eliminated and how they impact your build
What appraisal standards still apply to new construction homes
Step-by-step explanation of how VA construction appraisals work
Timelines, costs, and what to expect during the appraisal process
How the updates improve VA One-Time Close (OTC) construction loans
What to do if your appraisal comes in low (ROV & Tidewater insights)
Practical tips to avoid delays and protect your construction timeline
When Did the VA Appraisal Changes Go into Effect?
For appraisals ordered on or after May 1, 2026, an update to VA's Lenders Handbook (VA Pamphlet 26-7) modified the property standards for new appraisals and construction loans. The changes are based on the date the appraisal is ordered, not the closing date.
Lenders and builders should review the 2026 VA property changes before ordering new appraisals.
The Problems the VA Was Solving
Several MPR rules had not been updated for many years and added cost and delay on new homes.
The VA removed four items from its property standards checklist.
The 4 MPR Requirements Removed in 2026
These are the four items VA removed or narrowed.
Radon Certification for New Construction — Eliminated
Builders no longer need to provide a radon certification for VA purposes on new construction. Local building codes still apply, and VA still recommends radon testing as a health precaution. You can always test on your own.
Sheds and Detached Structures — No Longer Evaluated
Non-habitable detached structures (such as sheds, workshops, and detached garages) no longer have to meet Minimum Property Requirements. The appraiser still notes them in the report and can still call out a real safety hazard.
Oxygen Depletion Sensors for Non-Vented Heaters — Removed
VA no longer requires a certification that non-vented room heaters have an oxygen depletion sensor.
Paint Repair Standards — Simplified for Post-1978 Homes
VA used to require appraisers to identify failing paint in any home. Defective paint in homes built before 1978 is still presumed to be lead-based and must be fixed. In homes built in 1978 or later, which includes all new construction, paint condition is now treated as cosmetic and is not an MPR repair.
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 safety standards themselves did not change. VA removed items that are cosmetic or already covered by local codes.
How the VA Construction Appraisal Works?
The VA appraisal for a new construction build is different from a typical purchase appraisal because the home isn't built yet.
The As-Completed Appraisal Explained
For proposed construction, VA requires an as-completed appraisal before ground is broken. The appraiser reviews the plans and the builder's specifications to value the home as if it were finished.
Your lender uses that value to set the loan amount before construction begins.
What Happens if the Appraisal Comes in at Value vs. Below Value?
If the as-completed appraisal equals or exceeds the total cost, the loan can move to closing. If it comes in lower, you can renegotiate the contract price, pay the difference in cash, or request a reconsideration of value.
A VA loan can't exceed the appraised value, except for a financed funding fee and certain energy-efficiency improvements.
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)
After the as-completed appraisal, VA (or a lender VA has authorized) issues a Notice of Value (NOV). The NOV confirms the appraised value of the home as it will be when finished. Your lender needs it to close the loan; without a NOV, the loan can't close. After construction, a final inspection confirms the home was built as planned before the loan converts to permanent financing. Schedule it as soon as the builder finishes so conversion isn't delayed.
VA Appraisal Timelines and Fees in 2026
Plan for appraisal time and cost before you set your build schedule and 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. The appraiser has to review and value the plans and specifications.
Expect 30 business days or more in busy markets or rural areas with few VA appraisers, and plan for it up front.
VA Appraisal Fee Breakdown for Construction Loans
VA sets appraisal fee schedules by state or region 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 areas with few VA appraisers, VA may allow a higher fee or a longer turnaround.
Ask your lender what applies in your county before the appraisal is ordered.
How the 2026 Appraisal Updates Affect VA One-Time Close Construction Loans?
A VA One-Time Close (OTC) construction loan combines the construction loan and the permanent mortgage into one application, one closing, and one interest rate.
The VA one-time close appraisal uses the as-completed model, and your permanent loan depends on that same appraised value.
The 2026 MPR changes remove common appraisal conditions on new builds, such as radon certification, detached-structure repairs, and cosmetic paint repairs, so there are fewer items to clear before closing and conversion.
What to Do if Your VA Construction Appraisal Comes in Low?
A low appraisal doesn't end your build. You have options.
Reconsideration of Value (ROV) — How It Works in 2026?
VA's Tidewater process gives you a chance before the appraisal is final. When the appraiser expects the value to come in below the contract price, they notify the lender, and you, your builder, and the lender have two business days to send additional comparable sales or information.
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:
Comparable sales the appraiser did not consider.
Factual errors in the appraisal (e.g., square footage, features that are not there, or incorrect lot size).
Comps for new construction in the same subdivision or from the same builder.
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?
Prevention is cheaper and quicker than an ROV. Before the appraisal is ordered:
Provide your lender with a complete spec sheet and feature list from your builder when the appraisal is ordered. That gives the appraiser what they need to value the home under VA guidelines.
Provide your lender with recent construction sales prices in your area before they order the appraisal.
Don't overbuild for the area. A $600k custom build in a neighborhood of $380k homes will often appraise low.
Use a builder with experience building VA-financed homes in your county.
Ready to Build with a VA Construction Loan? Here's Your Next Step
The 2026 VA changes remove several appraisal conditions, but the process still includes a plans-based appraisal, draw inspections, and possibly an ROV.
Shirley Mueller, Sr. VP of Veteran Lending at CrossCountry Mortgage, has specialized in VA home loans for over 20 years.
Using the local market and the 2026 VA Minimum Property Requirements, Shirley and her team will help you build from plan to Notice of Value.
Schedule a free VA construction loan consultation.
Frequently Asked Questions
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. This takes longer than a typical purchase appraisal. Busy markets and rural counties with few VA appraisers can take 30+ business days, so factor this time into your build schedule upfront.
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.
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. VA issues the Notice of Value (NOV) from the plans-based appraisal, and the lender uses it to close your loan before construction starts.
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.
Can I Challenge A Low Appraisal On A VA Construction Loan?
If the report value is too low, Tidewater gives you two business days to provide additional data before the report is finalized. Once the report is final, you can request an ROV through your lender to add comparable sales or correct errors.
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.
About the author
Shirley Mueller
Sr. VP of Veteran Lending at CrossCountry Mortgage (NMLS #336103). A loan originator since 2003, Shirley has specialized in VA home loans for over 20 years, and her team focuses on VA one-time close construction loans for Veterans and active-duty families.