source:
  type: guide
  id: va-m26-7-ch10-t20
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New Construction
    Sold by the Lender
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New
    Construction Sold by the Lender.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch10-t20-full
  canonical_id: va-m26-7-ch10-t20-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New Construction
    Sold by the Lender
  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 20 — New
      Construction Sold by the Lender
    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: '20. New Construction Sold by the Lender Change Date March 11,
      2019 • This chapter has been revised in its entirety. a. Appraisal Request If
      a lender acquires title to a newly constructed home due to a builder’s bankruptcy
      or cessation of business, the lender must order the appraisal as follows: •
      As “existing”, not “new”, construction, and • As “IND”, not “LAPP”, as properties
      sold by the lender are not eligible for processing under LAPP. b. Documentation
      Required The lender must: • provide evidence of property ownership, • complete
      any repairs needed for the property to meet VA’s MPRs, • obtain a certificate
      of occupancy from the local authority, and • obtain the Veteran’s signed acknowledgement
      that “This property is being purchased as existing construction from a lender
      who acquired this new construction property from the builder. There is no warranty
      and VA will not provide assistance with any construction defects.” VA Pamphlet
      26-7, Revised Chapter 10: Appraisal Process 10-32'
  judgment: false
