Deciphering the VA Lender’s Handbook Chapter 10 Part 2
Below is a chart provided by the Handbook that numbers and explains the basic steps of requesting a VA appraisal. This information is generally meant for lenders, but is important for anyone planning on requesting an appraisal to know. These are the basic steps, so more details on these steps will be provided in more articles on the VA Appraisal. The Chart:
|1||Ensure that the property is eligible for appraisal and all other appraisal requests can be satisfied. Contact the VA office of jurisdiction for the property if there are:
Note: Every property eligible for the Lender Appraisal Processing Program (LAPP) should be processed under LAPP. If a LAPP lender fails to process an eligible property under LAPP, the request for VA guaranty must include a detailed explanation.
|2||Access TAS, and provide all necessary information about the case.
Note: LAPP lenders and loan holders/servicers who wish to have the appraisal report e-mailed to them must provide an e-mail address in Item 5 of the appraisal request.
|3||The same day as the assignment is made e-mail, fax or mail the TAS-generated VA Form 26-1805-1, and any other required documentation, to the appraiser assigned.
For liquidation appraisals, include the name and telephone number of the current or last known occupant. If the property is vacant, aso include the keys to the property, or sufficient information to enable the appraiser to gain access to the property; for example, the name and telephone number of a local person to contact.
If appraised as “Proposed or Under Construction.”
If the veteran is acting as the general contractor in building a home for his or her own occupancy, include:
Now, the above steps assume that TAS is available for use, which is true in most cases. However, if TAS is unavailable, you can still submit a request for an appraisal. Complete step 1 in the chart above as normal, then, instead of getting on TAS, fill out VA Form 26-1805, VA Request for Determination of Reasonable Value. VA Form 26-1805 needs to be typed and completely filled out in order for the request to be processed. There are only three exceptions for this:
- properties already listed on a valid VA Form 26-1843a, Master Certificate of Reasonable Value
- loans for alterations, improvements or repairs of $3,500 or less, or
- partial release of the security for a VA-guaranteed loan
If the property is being appraised under LAPP, the put “LAP” as the prefix for the case number and write “LENDER APPRAISAL PROCESSING PROGRAM” under the lender’s name.
That is the basic process for requesting a VA appraisal. As you can tell, it’s somewhat complicated, but can be done by parties other than the lender if necessary. There are more specific instructions, but they have to do with an appraisal for a property to be liquidated, which means that it isn’t something borrowers will ever really deal with. If you are looking for more information on this, feel free to check out the text of the Handbook on the VA’s website.