Transferring a VA Appraisal

Question:

How long is a VA appraisal’s value attached to a specific property? An appraisal was done for someone looking to purchase a home using VA financing, but the loan did not close. Now, a new borrower, also a Veteran, is looking to do a VA loan on the same property, but he wants a new appraisal.

Answer:

VA requires that an appraisal remain with the original veteran. Appraisals can’t be transferred for any other use outside of a VA-guaranteed loan with the original veteran.

If there is a new veteran buyer, there must be a new appraisal. The VA Handbook does not clearly explain this, so we checked with a VA Regional Loan Center so that we would have something in writing to pass on to our subscribers when this question came up. (See below)

From VA RLC – Review Appraiser

“The original appraisal always stays with the original Veteran (A), even if they can’t use it. It cannot be transferred to another Veteran (B), even if the money is reimbursed. The original Veteran (A) can have the appraisal transferred to another lender, but he is the only one who can use it. Veteran B cannot use it for any reason.

So only Veteran A can use the appraisal, and if he can’t use it because the loan falls through or for other reasons, the appraisal will eventually drop off the system. No one else can use it.”

Subscribers can find out the VA Appraisal Transfer Procedures Chart under “Charts & Checklists” in the category of “VA.”