source:
  type: guide
  id: va-m26-7-ch13-t08
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 13, Topic 8 — Notice
    of Value Conditions
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 13, Topic 8 — Notice
    of Value Conditions.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch13-t08-full
  canonical_id: va-m26-7-ch13-t08-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 13, Topic 8 — Notice of
    Value Conditions
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 13, Topic 8 — Notice
      of Value Conditions
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 7bf94e7ed62e01fb
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:5b3ac5aae82a9e7a96541d2a367f66087cccf6e9745e4e093a3d5adf63582332
    paragraph_quote: '8. Notice of Value Conditions Change Date July 22, 2019 • This
      chapter has been revised in its entirety. a. NOV Conditions All conditions included
      on an NOV must be satisfied prior to guaranty of the loan by VA. b. Additional
      Lender Requirements While lenders may require additional documentation over
      and above VA requirements, often referred to as “lender overlays”, items that
      are not required by VA must not be included on the NOV. c. Table of NOV Conditions
      The following table lists the conditions that appear on the NOV form with details
      about when each condition is required on the NOV. The NOV letter format is provided
      in Appendix A at the end of this chapter. Continued on next page VA Pamphlet
      26-7, Revised Chapter 13: Notices of Value 13-12 8. Notice of Value Conditions,
      continued c. Table of NOV Conditions, continued NOV Condition Details for including
      this condition on an NOV 1. Energy Conservation Item 1a should be marked on
      NOVs for existing properties (over 1-year old or previously occupied) to allow
      lenders to increase the loan amount for Veterans wishing to make energy efficiency
      improvements (see Chapter 7 of this Handbook). Item 1b should be marked on NOVs
      for new or proposed construction excluding manufactured homes. For new and proposed
      manufactured homes, energy efficiency is already covered by the manufacturer’s
      guidelines (see Chapter 12, Topic 42 of this Handbook) so this item should not
      be marked. 2. Wood Destroying Insect Information If the property is located
      in an area on the Termite Infestation Probability Map where the probability
      of termite infestation is "very heavy" or "moderate to heavy," a wood destroying
      insect inspection report must be required on the Notice of Value (NOV). Mark
      2a if the property is existing or new construction, or item 2b if the property
      is proposed. For new construction, if a soil treatment guarantee is provided,
      this is preferable and will satisfy condition 2a. The pest control operator
      must meet all state requirements. State-required inspection forms are acceptable.
      Inspection reports are valid for 90 days. Soil treatment guarantees differ from
      an inspection and are consequently valid well beyond 90 days. A wood- destroying
      insect inspection is not required on units in low-rise or high-rise condominiums
      (units are stacked vertically) unless the appraiser notes a potential infestation
      problem. For site condominiums, and villa or townhome style condominiums where
      units are not vertically stacked, an inspection must be required on the NOV
      unless evidence of a treatment guarantee has been provided by the homeowners
      association. Continued on next page VA Pamphlet 26-7, Revised Chapter 13: Notices
      of Value 13-13 8. Notice of Value Conditions, continued c. Table of NOV Conditions,
      continued NOV Condition Details for including this condition on an NOV 3. Lien-Supported
      Assessment If the property is located in a planned unit development (PUD) or
      condominium, mandatory homeowners association fees must be shown on the NOV.
      Special assessments including local authorities collecting Community Development
      District (CDD) fees or other fees on the HOA’s behalf should be reported here
      as well. 4. Condominium If the condominium is conditionally accepted by VA,
      this item should be marked. This item is not required if the condominium is
      fully accepted by VA. If the condominium has not been accepted by VA, the NOV
      must not be issued. (See Chapter 11, Topic 12 of this Handbook). 5. Private
      Road/Shared Driveway If access to the property is by a private road or shared
      driveway, this item should be marked, unless the property is in a PUD or condominium
      with private streets which are covered by the organizational documents. If a
      state law establishes requirements for the maintenance of private roads, this
      condition is not needed on the NOV. 6. Flood Insurance If the property is located
      in a Special Flood Hazard Area, this item must be marked. It is the lender''s
      responsibility to ensure that flood insurance is obtained and maintained on
      properties located in SFHAs, whether or not the appraiser correctly identifies
      the property as being in an SFHA. If flood insurance is not available, a property
      in a SFHA is not eligible to be the security for a VA-guaranteed loan. 7. Water/Sewage
      System Acceptability If the property has an individual water supply, such as
      a well, this condition must be marked. For proposed construction cases, acceptance
      of an individual sewage system must be required. Acceptance of the sewage system
      is also required for existing or new construction cases in which there is an
      indication of a problem or the property is in an area known to have soil percolation
      problems. Certifications are valid for 90 days unless the local authority indicates
      otherwise. Continued on next page VA Pamphlet 26-7, Revised Chapter 13: Notices
      of Value 13-14 8. Notice of Value Conditions, continued c. Table of NOV Conditions,
      continued NOV Condition Details for including this condition on an NOV 8. Connection
      to Public Water and/or Public Sewer This condition is required only if the property
      does not have public water and/or sewer and the state or local authority has
      mandated connection to public utilities.'
  judgment: false
