VA Pamphlet 26-7 Chapter 14, Topic 7: Changes to Construction Exhibits

Document
VA Lender's Handbook, VA Pamphlet 26-7
Version in Zeitro Strata
Where
pages 347–351 of 461

Page 347

Topic 7. Changes to Construction Exhibits

July 14, 2003

How to Request a Change

Use the table below to request a change to construction exhibits after the appraisal.

Page 348

When a Veteran is ...

Then ...

under contract the veteran under contract must make a written request for any changes.

not under contract

the builder, lender, or sponsor making the written request for modification must certify that the property is not under contract to a veteran.

Change Request Form

VA Form 26-1844, Request For Acceptance of Changes in Approved Drawings and Specifications must be used to request the change. There are two exceptions:

If there is no veteran-purchaser involved and the change is limited to substitution of mechanical equipment of equal value, then the fee inspector may check VA Form 26-1839, Section 1B, Substitutions or Deviations, describe the change of equipment and the value attributed to the substituted equipment and note the change on the related plans and specifications.

If the property was inspected by HUD, provided

- the additions, substitutions or variations are clearly described on the HUD inspection report

- the veteran-purchaser has signed his/her acceptance of the changes, and

- the change items are of a minor nature with no additional cost to the veteran involved and no change in reasonable value is indicated.

-

- Example: Substitution of water heater, furnace, hardware, bath fixtures and/or relocation of electrical outlets, windows, etc.

Approval of Changes not Affecting Property Value

Fee inspectors may approve and distribute a properly completed VA Form 26-1844, containing all required signatures, which does not involve deletions or a change in value. In these cases, the builder must complete VA Form 26-1844 in duplicate and have the form at the job site at the time of the scheduled inspection.

The inspector

confirms the above information

inspects the property according to the plans, specifications and change order

signs the change order in the appropriate space

gives the builder the original counter-signed change order to forward to the lender, and

retains one copy.

Page 349

Approval of Changes Which Affect Property Value

VA staff must approve any VA Form 26-1844, Request for Acceptance of Changes in Approved Drawings and Specifications, including deletions or a change in value, by issuing an amended NOV.

VA will generally find it more appropriate to pursue this action in cases which also involve changes in notice of value conditions or legal requirements, legal descriptions substitution of plan types, etc…

Notification

For changes approved by the VA staff, VA

mails a copy of the amended NOV directly to the veteran-purchaser,

places copy of amended NOV in the VA loan file, and

notifies the lender that the amended NOV is available through TAS.

If no veteran is under contract, a copy will be attached to the veteran’s copy of the notice of value in the loan file and mailed to him/her upon receipt of a loan application or loan report.

Cancellation of VA Approval

Any violation of the Conditions of Acceptance printed on the reverse of VA Form 26-1844 will be cause to withdraw or cancel VA’s acceptance of the changes.

Additional Inspections, 14-11

Approval of Changes Affecting Property Value, 14-16

Approval of Changes not Affecting Property Value, 14-16

Assigning an Inspector, 14-3

Cancellation of VA Approval, 14-17

Change Notification,14-17

Change Request Form, 14-15

Completion of Excavation Alternative, 14-5

Completion of Foundation Alternative, 14-5

Consequences of Inspections, 14-1

Construction Exhibits, 14-15. See Section 10. 10

Construction Inspections, 14-1. See Chapter 12, VA Minimum Property Requirements (MPRs)

Delayed Installation of Appliances and Finished Floor Covering, 14-13

Delays in starting construction, 14-3

Determining the Type of Inspection, 14-1

Discontinuing Reliance on Local Inspections, 14-10

Page 350

Equal Employment Opportunity Requirement, 14-4

Exterior Inspection, 14-7

Final Inspection, 14-8

First and Third (final) Inspections, 14-11

First Inspection Stage, 14-5

How to Request a Change, 14-15

Individual Water Supply, 14-8

Inspection Stages, 14-4

Interior Inspection, 14-7

Lender Use of Inspection Reports, 14-14

Lender’s Loan Origination file, 14-10

Manufactured Homes Classified as Real Estate, 14-11

Missed Inspections, 14-9

Obtaining an Inspection, 14-3

Qualified Inspectors, 14-12

Re-inspection, 14-9

Requesting an Inspection, 14-3

Required Inspections, 14-11

Second Inspection Stage, 14-6

Sewage Disposal System, 14-8

Special Inspections, 14-9, 14-11

Specially Adapted Housing Cases, 14-2

Third Inspection Stage, 14-7

VA Reliance on Local Building Inspections, 14-10

Waiving First and Second Stage Inspections, 14-10

Page 351

Article ID: 554400000314752 VA Pamphlet VAP26-7 Chapter 15 Lender Appraisal Processing Program (LAPP)

Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.