You've earned your VA loan benefit and you're ready to build. Then comes the appraisal, and in the past a shed, a missing radon certificate or a few paint touch-ups could add conditions and push back closing on a VA construction loan.
For VA appraisals ordered on or after May 1, 2026, VA removed or narrowed four of those property requirements. Here's what changed, what stayed the same, and what it means if you're building in Texas.
When Did the 2026 VA Appraisal Updates Start?
The changes come from an update to VA's Lenders Handbook (VA Pamphlet 26-7, Chapter 12) and apply to VA appraisals ordered on or after May 1, 2026. What counts is the date the appraisal was ordered, not the inspection date or the closing date. An appraisal ordered before May 1 follows the older rules.
The 4 VA Property Requirements That Changed
VA's Minimum Property Requirements (MPRs) make sure a home is safe, sound and sanitary. In 2026 VA dropped a few items that were cosmetic or already covered by local building codes:
Requirement | For appraisals ordered on or after May 1, 2026 |
Radon certification on new construction | No longer required by VA. Local codes still apply, and testing is still a good idea. |
Sheds, workshops and detached garages | Non-living outbuildings no longer have to meet MPRs. The appraiser can still call out a real safety hazard. |
Non-vented gas heaters and fireplaces | The certification requirement was removed. |
Defective paint | On homes built in 1978 or later, including all new construction, peeling or chipped paint is treated as cosmetic. Homes built before 1978 still need defective paint corrected because of possible lead. |
What Stayed the Same
The core standard didn't change. The home still has to be safe, structurally sound and sanitary, with a sound roof, working utilities and safe heating, electrical and plumbing systems. Safety and structural problems must still be fixed before closing. Cosmetic items like scuffs and normal wear have never been VA repair items, and they still aren't.
What This Means for VA Construction Loans in Texas
For a new build, the biggest practical changes are the radon certificate and paint. Your builder no longer has to supply a radon certification for VA, and paint touch-ups on a new home aren't a VA repair condition. Fewer conditions on the appraisal means fewer items to clear before closing and at the final inspection.
What doesn't change is the rest of the construction process: your builder must be approved by the lender before closing, the home is appraised from plans before the build, the lender inspects the work at stages before releasing each draw, and a final inspection confirms the home was built as planned.
How a VA Construction Appraisal Works
On a VA construction loan, the appraisal happens before construction begins, so there's no house to look at yet. The appraiser values the home as it will be when finished, using:
- The builder's plans and specifications
- The signed construction contract
- The total cost of the build, plus the lot
VA then issues a Notice of Value (NOV) confirming that as-completed value, and the loan amount is set from it. The loan can't close without the NOV. Learn more about the full VA appraisal process in Texas before you sign with a builder.
Why This Matters in Texas
Texas covers very different markets, from Austin, DFW, Houston and San Antonio to the Hill Country and West Texas. A few things to plan for:
- Lot and land costs vary widely by region, and they count toward the total cost the appraisal has to support.
- Rural and West Texas counties have fewer VA appraisers, so turn times can run longer.
- Builder pricing varies by area, and the appraised value has to support the contract price.
VA Appraisal Timeline and Cost
A VA construction appraisal usually takes longer than a regular purchase appraisal, because the appraiser has to value the home from plans. Plan on roughly 10 to 20 business days, and longer in busy markets or rural counties with few VA appraisers.
VA sets appraisal fees by state and property type, and the fee is paid when the appraisal is ordered. Proposed construction can carry an added fee, and each reinspection has its own fee. Your loan officer can tell you the current VA fee for your county before anything is ordered.
What If the Appraisal Comes In Low?
A low appraisal doesn't have to end your build. Your options include:
- Asking your lender to request a Reconsideration of Value (ROV) with stronger comparable sales
- Renegotiating the contract price or adjusting the plans with your builder
- Paying the difference in cash
A VA loan can't exceed the appraised value, except for a financed funding fee and certain energy-efficiency improvements.
What Texas Veterans Should Do Now
- Learn how the VA construction appraisal works before you sign a build contract.
- Choose a builder who is comfortable with VA paperwork and timelines.
- Budget for the appraisal and reinspection fees from the start.
- Work with a lender experienced in VA construction loans.
Shirley Mueller's team prepares a complete construction package, plans, specs, contract and costs, so the appraiser has everything needed for an accurate value. Ready to start? Apply or book a 15-minute call with Shirley's team.
Frequently Asked Questions
When do the 2026 VA appraisal changes apply?
To VA appraisals ordered on or after May 1, 2026. The order date is what counts, not the inspection or closing date.
Will peeling paint hold up a VA loan in 2026?
Not on homes built in 1978 or later, including new construction. Defective paint on homes built before 1978 still has to be corrected.
Do these changes affect VA construction loans?
Yes. Builders no longer need a radon certification for VA, and paint on a new home isn't a VA repair item. The appraisal still happens before construction begins, based on the plans and contract.
How long does a VA construction appraisal take in Texas?
Usually about 10 to 20 business days, and longer in busy markets or rural counties with few VA appraisers.
How much does a VA appraisal cost in Texas?
VA sets the fee by state and property type, and proposed construction and reinspections can add to it. Your loan officer can quote the current fee for your county.
What should I do if the appraisal comes in low?
Ask your lender about a Reconsideration of Value with better comparable sales, renegotiate the price or plans with your builder, or pay the difference in cash.