source:
  type: guide
  id: va-m26-7-ch10-t10
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 10 — Properties
    Not Eligible for an Appraisal
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 10 — Properties
    Not Eligible for an Appraisal.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch10-t10-full
  canonical_id: va-m26-7-ch10-t10-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 10 — Properties
    Not Eligible for an Appraisal
  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 10, Topic 10 — Properties
      Not Eligible for an Appraisal
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 454f0e7af6f49c3b
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:0551eb031df071b1ef69a627ad29b5a2c41dc00e3e2b9ccd421133b2561fa57d
    paragraph_quote: '10. Properties Not Eligible for an Appraisal Change Date March
      11, 2019 • This chapter has been revised in its entirety. a. Determination at
      Earliest Opportunity Lenders must determine that a property is not eligible
      for an appraisal at the earliest possible opportunity. If an appraisal is requested
      and the appraiser finds that the property is not eligible, the appraiser should
      stop working on the appraisal and immediately notify the lender. b. Properties
      Not Eligible for an Appraisal Due to Location Properties in the following locations
      are not eligible for an appraisal: • Airport Clear Zone (also known as a Runway
      Protection Zone), if the property is proposed construction (see Chapter 12,
      Topic 41 of this Handbook), • Lava Flow Zones 1 and 2 (see Chapter 12, Topic
      10 of this Handbook), • Coastal Barrier Resources System (CBRS) area (see Chapter
      12, Topic 9 of this Handbook), • Special Flood Hazard Area (SFHA) if flood insurance
      is not available (see Chapter 12, Topic 8 of this Handbook), • Area subject
      to regular flooding, whether or not it has been designated an SFHA (see Chapter
      12, Topic 8 of this Handbook), • Transmission line easement involving high-pressure
      gas, liquid petroleum (see Chapter 12, Topic 40 of this Handbook) or high voltage
      electricity if any part of the residential structure is within the easement
      (see Chapter 12, Topic 39 of this Handbook), and • Area susceptible to geological
      or soil instability for new and proposed construction cases unless the builder
      provides evidence that the site is not affected or the instability has been
      addressed in the engineering design (see Chapter 12, Topic 7 of this Handbook).
      Continued on next page VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process
      10-20 10. Properties Not Eligible for an Appraisal, continued c. Property Types
      that are Not Eligible for an Appraisal Properties in the following situations
      are not eligible for an appraisal: • A property that does not comply with current
      zoning regulations, however, a “legal non-conforming” use is acceptable and
      should be described in the appraisal (see Chapter 12, Topic 12 of this Handbook).
      • A property that is primarily non-residential is ineligible for VA loan guaranty
      (see Chapter 12, Topic 11 of this Handbook). • For new and proposed construction
      cases, if the local building authority routinely performs construction inspections,
      but none were conducted, the property is ineligible for VA loan guaranty (see
      Topic 14 of this chapter). • Condo-hotel properties (Condotels) where units
      are placed in a rental pool and “air” condominiums that do not have a homeowners
      association are not eligible for an appraisal. (see Chapter 11, Topic 12 of
      this Handbook.) • A property is ineligible for an appraisal if any party of
      interest to the transaction, other than the purchaser, is debarred Government-wide,
      or excluded from participation in the Loan Guaranty program due to a VA-imposed
      sanction. Sanctions typically involve construction complaints or unfair marketing
      practices. Lenders must confirm that builders of properties appraised as new
      or proposed construction have a valid VA-issued builder ID number to ensure
      that sanctioned builders do not participate in the VA Home Loan Guaranty program
      (see Topic 11 of this chapter). If the sanctioned party is a builder, this restriction
      applies to any property still owned by the builder, including houses under construction
      and existing houses. VA’s refusal to appraise will not be affected by either
      the fact that the local building authority approved the work on which the sanction
      was based, or the builder changes the company’s name or organizational structure
      or becomes a principal or officer in another organization. VA Pamphlet 26-7,
      Revised Chapter 10: Appraisal Process 10-21'
  judgment: false
