The Department of Veterans Affairs (VA) is rolling out updates to Chapter 12 of the VA Lenders Handbook, which outlines Minimum Property Requirements (MPRs). These changes will apply to VA appraisals ordered on or after May 1, 2026.

The overall goal? Simplify the appraisal process and reduce unnecessary conditions that can delay transactions.

What’s Changing?

Several updates have been made to streamline how VA appraisals are conducted:

• Certain topics – such as Detached Improvements and SAH RLC Jurisdiction – have been removed as standalone sections
• The specific rule addressing non-vented heaters has been eliminated
• Guidance for homes built in 1978 or later has been simplified and condensed
• For homes built before 1978, the phrase “or related improvements” has been removed narrowing how lead-based paint concerns may be interpreted
• Radon gas is no longer listed as a standalone Minimum Property Requirement

What This Means for Buyers and Sellers

In practical terms, these updates signal a shift toward a more streamlined and less restrictive appraisal process for VA loans.

For buyers, this could mean:

• Fewer repair conditions tied to overly broad interpretations
• A smoother path from contract to closing

For sellers, especially those with older homes, this may result in:

• Fewer appraisal-related repair requests
• Less risk of deals being delayed due to technical or outdated requirements

A Word of Caution

While the VA is clearly working to reduce complexity, property safety standards still matter.

Appraisers will continue to evaluate:

• Overall safety and livability
• Local building and health requirements
• Property-specific concerns that could impact habitability

Additionally, as these updates are implemented, there may be a period of adjustment. VA appraisers may interpret the new guidelines differently at first.

The bottom line is these changes are a positive step toward making VA transactions more efficient and predictable – but experience still matters. Having an agent who understands how VA appraisals work (and how these updates are being applied in real time) can make all the difference in keeping your deal on track.