Yes. A brand-new home still has to meet VA’s Minimum Property Requirements (MPRs), which VA describes as making sure the home is safe, structurally sound, and sanitary. On a new build, VA also checks how the home was inspected during construction, and if the local authority performs inspections but none were done, the home isn’t eligible for a VA loan. Here’s how the MPRs and inspection rules in VA’s Lender’s Handbook (M26-7) play out on new construction around San Antonio.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
VA Loan & New Construction Specialist
Also see: VA Loans on New Construction | New Construction Inspections | VA Loan Guide for San Antonio
What Are VA Minimum Property Requirements?
Chapter 12 of M26-7 lists VA’s MPRs. They cover things like access, drainage, utilities, water and sewage, heating, the roof, and hazards. When an appraiser finds an item that doesn’t meet them, the appraisal is made “subject to” that repair.
VA is clear that the appraisal is not a home inspection. The appraiser won’t run operational checks of the mechanical systems, and shouldn’t call for repairs on cosmetic items or minor wear. The Notice of Value (NOV) VA issues also recommends that you get a home inspection.
So on a new build, MPRs are a floor, not a quality check. Your own inspections still matter.
Does It Matter If the Home Is “New” or “Proposed” Construction?
Yes. VA treats them differently:
- New construction: Less than 1 year old based on the certificate of occupancy and never occupied, or complete except for customer preference items like flooring, appliances, and fixtures.
- Proposed construction: Appraised from plans and specifications or from a completed model home before it’s built.
On proposed construction, VA requires the VA-assigned appraiser to visit after the home is done and certify that it substantially matches the plans the appraisal was based on, plus any contract items like landscaping, fencing, or decking.
If you’re buying a to-be-built home, this is the step that confirms you got what was appraised.
How Do Local Building Inspections Affect a VA Loan on a New Build?
VA’s handbook says lenders must confirm whether the local building authority performs construction inspections. Many authorities inspect at the foundation, framing, and final stages. Here’s how VA uses that:
- Local inspections done: VA accepts the certificate of occupancy as evidence the home was completed to local code. If no certificate is issued, copies of the three inspection reports or a letter from the authority work instead.
- Local inspections offered but not done: The home is ineligible for a VA-guaranteed loan.
- No local inspections: On proposed construction, the builder must provide both VA’s 1-year warranty (VA Form 26-1859) and a 10-year insurance-backed warranty, and the lender must certify the home is complete and meets MPRs.
Around San Antonio, some new communities are inside city limits and others are in county areas outside them. Ask the builder who inspected the home and get copies, because the answer changes what VA needs. My new construction warranty guide covers the warranty side.
Does a New Build in Texas Need a Termite Inspection for a VA Loan?
Usually, yes. VA’s local requirements page lists Texas among the states where wood-destroying insect information is required statewide. M26-7 then lets new construction satisfy that with a soil treatment guarantee, which VA calls preferable and which stays valid well beyond the 90 days an inspection report lasts.
Ask the builder early for the soil treatment guarantee from its pest control company, so it’s in the file before closing.
What Other MPRs Come Up on San Antonio-Area New Builds?
These are the Chapter 12 items I’d watch on a new lot:
- Drainage: The site has to give positive, rapid drainage away from the house and prevent water from ponding. Sloped Hill Country lots in Boerne or Spring Branch deserve a close look after a rain.
- Soil: In areas with a history of soil instability, the builder has to certify that the engineering design accounts for it, or provide a report from a qualified geologist or engineer.
- Flood zones: If the home is in a FEMA Special Flood Hazard Area, flood insurance is required. VA allows private flood insurance instead of the National Flood Insurance Program. Here’s how to check a flood zone.
- Wells: A private well has to be tested by a disinterested third party, and results are valid for 90 days unless the local authority says otherwise.
- Septic: On proposed construction with an individual sewage system, health authority approval is required.
Can Flooring and Appliances Go In Right Before Closing?
Yes, within limits. M26-7 allows appliances and finished floor covering to be installed as late as just before closing, except bathroom floors and wood flooring. The lender then certifies they were installed as specified.
That matters when a builder is finishing several homes at once. Changes after the appraisal are different: they’re requested on VA Form 26-1844, and a change that affects value needs an amended NOV.
What If an MPR Repair Isn’t Done by Closing?
VA’s handbook gives two paths:
- Waiver: After the NOV is issued, you can ask VA to waive an MPR repair if you sign the request, your lender agrees, and the home is habitable from a safety, structural, and sanitation standpoint. VA says waivers shouldn’t cover items that create safety issues, and VA may lower the value by what the repair would have added.
- Escrow: The lender can hold funds in escrow so repairs are finished after closing, but the repairs have to be completed before VA guarantees the loan.
On a new build, I’d rather the builder fix it before closing. Put repair deadlines in writing. I cover more questions to ask in 5 Questions You MUST Ask Before Buying a New Construction Home in San Antonio.
Frequently Asked Questions: VA MPRs on New Construction
Is a VA appraisal the same as a home inspection on a new build?
No. VA says the appraisal is not a home inspection. The appraiser notes readily apparent repairs needed to meet VA’s Minimum Property Requirements but doesn’t run operational checks of mechanical systems, and the Notice of Value recommends getting a home inspection.
Can a new build be ineligible for a VA loan?
Yes. If the local building authority routinely performs construction inspections but none were done on the home, VA’s handbook says the property is ineligible for a VA-guaranteed loan. Builders also need a valid VA builder ID before the Notice of Value is issued.
Ready to Buy a New Build With Your VA Loan?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran who has helped buyers and sellers close 120+ homes across the San Antonio metro. He helps VA buyers line up inspections, warranty paperwork, and builder deadlines on new construction in San Antonio, New Braunfels, and Boerne.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: How to Use a VA Loan in San Antonio | Buying a New Build Before Your PCS | Builder Lenders vs Outside Lenders
Sources: VA Lender’s Handbook M26-7, Chapter 12 (Minimum Property Requirements); M26-7, Chapter 10 (Appraisal Process, construction inspections and warranties); M26-7, Chapter 13 (Notices of Value); M26-7, Chapter 14 (Construction Inspections); VA Home Loans, Local Requirements (wood-destroying insect information).