VA appraisal question

[nelsonje]

Hello,
I'm a active duty military member for 19 years but alas..I'm a first time home buyer. I will be using the VA loan. I have learned real quick how quick my checking account drains if I don't attempt to be prepared for things that arise. (One deal has already fell through due to a foundation issue).

Just in case it matters, I live in Asheville, NC.

My question has to do with garages that are in basements. It seems most garages that are in basements have unfinished ceilings. (I can see floor joist,insulation,plumbing,etc..and there is living space above)

Do VA appraisers note this as a safety hazard and will this be something that has to be fixed before closing?

Is it case where some VA appraisers do note this…and some don’t?

Does the entire basement ceiling have to be finished with 5/8 drywall or just the part where the cars would park?

I know it’s like a chance you take, but I’m trying my best to keep from losing my inspection and appraisal fees if a deal falls through because of something like that. Or at a minimum, mention it somehow in the negotiating/contract.

Also I would be curious if any home buyers/sellers have ran into this situation and how did you minimize financial impact and how it was resolved.

Thanks for any assistance you can provide and any replies will greatly appreciated.

John.

 

[nelsonje]

For information I asked the same question to the Construction and Valuation section at a VA regional center. They responded with the following:


Dear John Nelson,

The Lenders Handbook VA Pamphlet 26-7 (http://www.warms.vba.VA.gov/pam26_7.html), which is the guide that is provided to VA approved lenders, does not address specific building requirement issues, such as those you have listed.

The guidance that is provided on contruction within the handbook can be boiled down to this statement: The home must be safe, sound and sanitary and meet the local building requirements. The VA appraiser should not note it as a safety issue, unless it is recognized as a safety issue by the local building inspector or the fire marshall. The question you are asking is too specific for the lenders handbook. You should ask your local building inspection department or the local fire marshall. If the home is safe, sound and sanitary and is acceptable to the local building authority and the fire marshall, then the home is acceptable to VA.

If the item is found to be an item that needs to be repaired to meet VA minimum property requirements, then you should discuss establishing an informal escrow account for the completion of repair items after closing (See VA Pamphlet 26-7 Chapter 9.9 Escrow for Postponed Completion of Improvements)

Construction and Valuation
Atlanta VA Regional Loan Center
888-768-2132 OPT 3

 

[Mike Garrett RAA]

Not a requirement.

 

[nelsonje]

Thanks for the reply.

A prime example of what brought this up was this old thread I found here:

http://appraisersforum.com/showthread.php?t=68217

Firewall requirements, etc.

It was interesting thread that generated a pretty good debate among members here at the time.

Thanks again. Information you provided will make me feel a little more confident that I will not have a problem with a "unfinished basement" style garage.

John.