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VA Proposed Construction & Under Construction Question

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RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I have my first VA under construction appraisal that I am working on. The improvements are between 50 to 55% complete. I have been reading the VA Reference Material (Mainly Chapter 10). It says:

Construction exhibits are required for properties appraised as “proposed or
under construction”. They are not required for properties appraised as either
“new construction” or “existing construction.”

Each set of proposed construction exhibits must include
 specifications on VA Form 26-1852, Description of Materials, signed and
dated by the builder in all cases and by the veteran when one is under
contract in an individual case processed as “proposed or under
construction”. Other specification formats are also acceptable, provided
they are signed and dated by the builder and veteran as described above and
are sufficiently detailed for VA appraisal and compliance inspection
purposes.
 plot plan which includes the location of the well/septic systems, if
applicable.
 all exterior building elevations.
 foundation or basement plan.
 plan of all floors.
 sectional wall details.
 a certification signed and dated by a technically qualified and properly
identified individual (such as, builder, architect, engineer, etc.) which states,
“I certify that the construction exhibits for (identification of the property by
house type, lot, block, subdivision name, etc.) meet all local code
requirements and are in substantial conformity with VA Minimum Property
Requirements, including the energy conservation standards of the 1992
Council of American Building Officials’ Model Energy Code and the
requirement for lead-free water piping.” VA will accept HUD Form 92541,
Builder’s Certification of Plans, Specifications and Site, in lieu of this
certification.
Note: In most cases for HUD Form 92541 to be acceptable, it must have the
identifying information at the top completed, as well as Items 2 and 4 or
Items 5, 6, 9, 10, 12 and 13.

My question is: Is it a requirement to have the VA Form 26-1852 completed and sent to the appraiser?
 

mhyatt76

Freshman Member
Joined
Oct 31, 2008
Professional Status
Certified Residential Appraiser
State
Texas
I've always obtained this from the lender via the VA portal prior to proceeding with the assignment.
 

Tom McDowell

Member
Joined
Jan 19, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
North Carolina
I have my first VA under construction appraisal that I am working on. The improvements are between 50 to 55% complete. I have been reading the VA Reference Material (Mainly Chapter 10). It says:

Construction exhibits are required for properties appraised as “proposed or
under construction”. They are not required for properties appraised as either
“new construction” or “existing construction.”

Each set of proposed construction exhibits must include
 specifications on VA Form 26-1852, Description of Materials, signed and
dated by the builder in all cases and by the veteran when one is under
contract in an individual case processed as “proposed or under
construction”. Other specification formats are also acceptable, provided
they are signed and dated by the builder and veteran as described above and
are sufficiently detailed for VA appraisal and compliance inspection
purposes.
 plot plan which includes the location of the well/septic systems, if
applicable.
 all exterior building elevations.
 foundation or basement plan.
 plan of all floors.
 sectional wall details.
 a certification signed and dated by a technically qualified and properly
identified individual (such as, builder, architect, engineer, etc.) which states,
“I certify that the construction exhibits for (identification of the property by
house type, lot, block, subdivision name, etc.) meet all local code
requirements and are in substantial conformity with VA Minimum Property
Requirements, including the energy conservation standards of the 1992
Council of American Building Officials’ Model Energy Code and the
requirement for lead-free water piping.” VA will accept HUD Form 92541,
Builder’s Certification of Plans, Specifications and Site, in lieu of this
certification.
Note: In most cases for HUD Form 92541 to be acceptable, it must have the
identifying information at the top completed, as well as Items 2 and 4 or
Items 5, 6, 9, 10, 12 and 13.

My question is: Is it a requirement to have the VA Form 26-1852 completed and sent to the appraiser?

Yes
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Thanks. I have a lender that says they have never had this requested before for proposed or under construction appraisals. I have been trying to get it for 2 weeks now.
 

David Beasley

Senior Member
Joined
Dec 12, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
I always ask for it, but only get it about 75% of the time. Of the ones I've been forced to do without it, I've never had one of them kicked back by the VA, lender, or anyone else. As long as I have enough data for my own piece of mind to adequately know what's going into a proposed home (and can go on to list all that data in the "I certify that I used x, y, z to determine..." comment), I generally just move ahead. But yes, for my first 12-15 years on the VA list, I hounded and hounded and hounded builders and agents for that 26-1852...but sometimes they just don't exist, or takes weeks to have a builder do, or whatever. So I ask, usually twice. After that, I just say "Hey, I asked - several times - and I never got one. Here's what I do have, do your best with it or make them send me the 26-1852." We can only work with what we are provided with - we cannot fabricate things and cannot read minds, and apparently cannot force builders or agents to provide things we need.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I believe that is what I am going to have to do. I still have not received it from the Lender. The report is 99% complete at this point.
 

Dean

Senior Member
Joined
Oct 16, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
I dont start the report (as told to me by the VA) until all of the required forms are sent.
 

Dean

Senior Member
Joined
Oct 16, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
I always ask for it, but only get it about 75% of the time. Of the ones I've been forced to do without it, I've never had one of them kicked back by the VA, lender, or anyone else. As long as I have enough data for my own piece of mind to adequately know what's going into a proposed home (and can go on to list all that data in the "I certify that I used x, y, z to determine..." comment), I generally just move ahead. But yes, for my first 12-15 years on the VA list, I hounded and hounded and hounded builders and agents for that 26-1852...but sometimes they just don't exist, or takes weeks to have a builder do, or whatever. So I ask, usually twice. After that, I just say "Hey, I asked - several times - and I never got one. Here's what I do have, do your best with it or make them send me the 26-1852." We can only work with what we are provided with - we cannot fabricate things and cannot read minds, and apparently cannot force builders or agents to provide things we need.
Yes, yes you can "force builders or agents to provide what you need". Its simple, dont start the assignment until it has been provided. It is a VA requirement that the lender provide you with this
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Yes, yes you can "force builders or agents to provide what you need". Its simple, dont start the assignment until it has been provided. It is a VA requirement that the lender provide you with this

My problem is that no one knew the house was not finished until I got out there to do the appraisal. I have interviewed the listing agent and she gave me the general idea as to what was going to be built. I am still waiting on the forms from the builder.
 

David Beasley

Senior Member
Joined
Dec 12, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
Yes, yes you can "force builders or agents to provide what you need". Its simple, dont start the assignment until it has been provided. It is a VA requirement that the lender provide you with this

Yes, but to do so would be to be putting yourself first. I try to put the veteran first. You waiting for a month for a builder to figure out what the form is, and then how to fill it in, costs the veteran - not you. My #1 priority as a VA appraiser is accurate and credible appraisals. My #2 priority is the veteran borrower.

And it may be a VA requirement, but I've not gotten them on as many as I've gotten them on over the past 18 years on the VA list and have never been yelled at about it from anyone on any side of the transaction. I, of course, answer to the Atlanta RLC so go ahead and report me over this. I'll wait.
 
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