Deciphering the VA Lender’s Handbook Chapter 14 Part 5

 

As you’ve hopefully read from the two articles previous to this one, the VA construction inspections are broken up into three stages. Technically, though, there are actually four stages, but the third and fourth usually occur at the same time. In the previous articles we covered stage 1 and then stage 2, and in this one we’ll go over the third stage. This is obviously important information for builders to know, but it’s also important for the borrower to know if they are trying to get a VA construction loan – especially if they are planning on doing some or all of the work themselves. Also, it’s helpful for any VA borrower to know that if the home was built with VA inspections, there was an in-depth examination of the property done so if you find something wrong with your home after you’ve bought it, you can usually track down the inspection reports and see why it didn’t come up. This also applies to those who are making major improvements to their home using a cash-out refinance.

The third (and fourth) inspection takes place after construction has been completed on the property, and the inspector checks for acceptable completion of all of the onsite and offsite improvements or construction. The third inspection really is a long and comprehensive process. The items that the inspector must check are grouped into two categories: exterior and interior, and cover the entire property from top to bottom, inside and out. The Handbook includes a full list of all the things that the inspector is to check for, which we have included below. The exterior list of things covers the pouring of the cement for the sidewalk and driveway, any retaining walls, utility connections, painting, and anything else that you might see, hear, or smell while living there. Here is the list for the exterior inspection:

compaction of fill material	protection against the elements and penetration of moisture	utilities
finish grading	masonry pointing	storm sewer system
drainage	caulking at openings	drainage channels
utility connections	paint coverage	grading
walks	flashing	curbs
drives	design of dwelling structure	gutters
accessory buildings	materials and details of their installation and finish	paving
retaining walls		pavement edging
planting		subgrade
safe terraces		base and wearing surface and erosion control
safe porches
safe areaways

 

Remember, the above list only covers the exterior things that need to be inspected. The third inspection also includes a thorough examination of the interior of the property. The superstructure and foundation of the home undergo their examinations at the first and second stage inspections, so the interior portion of the third inspection covers all of the finish work and work done in, around, and through the superstructure. Here is the list of the things that the interior inspection covers, as provided by the Handbook:

design	cabinets and millwork	quality and operation of hardware
materials, equipment, and details of their installation	details and operation of systems, equipment, and fixtures related to plumbing	quality of tilework
interior surfaces and their finish treatment	“” “” related to heating	quality of glass
	“” “” related to ventilating	quality of linoleum
	“” “” related to electric	venting of attics and underfloor spaces

 

In addition to all of the things in both the interior and exterior inspections, the inspector will also check that the individual water supply and sewage disposal system is in full compliance with the health authority having jurisdiction.

Now, as mentioned above, the fourth inspection usually takes place at the same time as the third inspection, so what does the fourth inspection cover? It’s quite simple in comparison to the third; the inspector needs two pictures, a short description of the suitability of the property, a report of any shortcomings on the property, and state that any issues have been reported. The two pictures are to record the appearance of the dwelling and indicate the grading and drainage of the site. The short description should describe the condition, suitability, and readiness for use of all equipment, fixtures, and observable construction of the property. Shortcomings that might be reported include scratches in paint, poorly fitted doors, stuck windows, cracks in walls, etc.

 

If you’re interested in more information about the VA inspections, call or contact us here at Low VA Rates.