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Chapter 14. Construction Inspections
Overview Topic 1. Obtaining an Inspection Topic 2. Inspection Stages Topic 3. VA Reliance on Local Building Inspections for First and Second Stages Topic 4. Manufactured Homes Classified as Real Estate Topic 5. Delayed Installation of Appliances and Finished Floor Covering Topic 6. Lender Use of Inspection Reports Topic 7. Changes to Construction Exhibits
Overview
January 1, 2001
Purpose
The purpose of VA inspections during construction is to ensure that all onsite and offsite improvements have been acceptably completed according to
the construction exhibits on which the VA value estimate is based, and
VA Minimum Property Requirements (MPRs) per Chapter 12.
Consequences of Inspections
A lender may close a loan based on a "clear" final inspection report.
Deviations from the construction exhibits may necessitate revision of the VA value estimate, if appropriate.
Properties that fail to meet VA MPRs will not be acceptable as the security for a VA loan.
Determining the Type of Inspection
Use the table below to determine the type of inspection required.
When the property is appraised as ...
Then ...
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proposed or under construction with no insured ten year protection plan
either a full complement of inspections is required, or
a final (third stage) inspection is required, only if local building authority inspections are acceptable in lieu of VA first and second stage inspections.
proposed or under construction with an insured ten year protection
only a final (third stage) inspection is required.
existing construction with major VA
will determine on a case-by-case basis
alterations
what regular or special inspections are required, and
improvements, or
if it is appropriate, based on the nature of the work, to have the lender certify that it has been satisfactorily completed.
repairs
Specially Adapted Housing Cases
The compliance inspection procedures applicable in Specially Adapted Housing cases are identical with those for other types of cases, except that special emphasis should be given to the adaptive features.
Any questions should be referred to the VA Specially Adapted Housing Agent at the VA field station.