Adjusting Value on VA Appraisals

Arizona VA Appraisal rules

The valuation challenges continue in the Phoenix area Real Estate market as evidenced by a recent change in how VA allows adjustments to be made to the Arizona VA appraisers estimate of value.  In the past, qualified Mortgage underwriters had the objective freedom and ability to increase a VA appraisers valuation of a property by up to 5% of the value given.

While it was a rarely used option, increasing the value an appraiser gives on a Phoenix are home by 5% on a VA appraisal was in fact an option 0n Arizona VA Real Estate transactions.  VA has recently rescinded this provision and VA Mortgage underwriters are no longer able to increase value by 5% of the Arizona appraisers original value. The value given by the VA appraiser must stand.  One thing that I still have as an advantage as Phoenix Arizona VA Mortgage Lender is the tidewater initiative.  The initiative is still alive and well (see VA section of my blog for more detail). The official notice regarding the change relative to the 5% rule can be reviewed here – VA Mortgage Circular

Cheack out official VA Mortgage Guidelines

Arizona Veterans Used to VA Appraisal Changes

I am not at all surprised by this move by VA.  Given the current Arizona Real Estate climate, it makes sense for VA to want Phoenix area lenders to rely upon their licensed appraisers to determine value. If you have had a bad experience with a VA appraisal I know what you are thinking. VA appraisals are the toughest in the industry. Sometimes I find it hard to argue that but the facts are that an appraiser SHOULD be able to determine a value better than a VA mortgage underwriter locked in a cubicle somewhere in the Phoenix Arizona desert! If in the future this should change I will be sure to post an update.  Learn more about Arizona VA appraisals and VA home loans.

By Jeremy House

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