Buying a home with a VA loan in California can be a smart financial move. The possibility of no down payment, some of the lowest mortgage rates in the industry, and more flexible credit guidelines make the VA loan one of the best loan products on the market.
But one critical part of the process that often catches homebuyers off guard is the VA’s Minimum Property Requirements (MPRs). These aren’t just a generic list of basic requirements to satisfy; they’re a key safety net to ensure the home you buy is safe, livable, and worth the investment.
Below, we break down exactly what MPRs are, how they apply specifically to homes in California, and what you can do to prepare as a VA loan homebuyer.
What Are The VA Minimum Property Requirements?
VA Minimum Property Requirements (MPRs) are standards set by the U.S. Department of Veterans Affairs to ensure that any property purchased using a VA loan is:
- Structurally sound
- Sanitary and safe
- Suitable for long-term occupancy
The goal of the VA loan MPRs is to ensure you’re not walking into a home with dangerous wiring, a collapsing roof, or a faulty water heater. The MPRs set by the VA are especially helpful for first-time homebuyers who might not know what to look for when evaluating a property.
These property requirements are evaluated during the VA appraisal (not to be confused with a home inspection, which is not required but highly suggested). A VA appraisal is a more in-depth examination of the property compared to a conventional appraisal, providing the buyer, lender, and VA with a detailed breakdown of each room, foundation, and the condition of the roof to ensure the property is suitable for the intended use.
VA Appraisal vs. Home Inspection
A VA appraisal is required when applying for a VA loan. It focuses on two things: establishing fair market value and ensuring the property meets the MPRs set by the Department of Veterans Affairs.
A home inspection is optional, but is strongly encouraged. Compared to the VA appraisal, a home inspection report provides a more comprehensive examination of the property, assessing the condition of appliances, HVAC performance, and other aspects that a VA appraiser may not test.
In short, a VA appraisal gives you the minimum information required by the VA, and a home inspection goes further to ensure you have the information you need about the appliances, HVAC, and more.
The MPR Appraisal Process in California
Once you’re under contract, your loan officer will order a VA appraisal. California’s high-demand housing market can slow this step, especially in rural or remote areas, if demand for VA loans is high.
Once completed, the appraiser issues a Notice of Value (NOV). This is your official green light that the home is worth the price and meets the MPRs.
Key MPR Categories California Homebuyers Should Know
Below are the general MPR categories, along with an explanation of how California’s diverse geography and climate can create unique property challenges.
Safety and Structural Integrity
- Roof: California’s sun and wildfire seasons can wear down roofing quickly. In some areas of California, temperatures routinely exceed 100 degrees each day during the summer. In other places, the temperature can routinely drop below freezing during the winter. VA appraisers will check for missing shingles, leaks, and age-related deterioration.
- Foundation: California has earthquakes, and the land movement can damage a foundation. If the property has foundational damage noted in the VA appraisal report the underwriter will most likely require it be repaired.
- Utilities: The home must have safe and reliable heating, electricity, and plumbing. In colder parts of California, heating is a non-negotiable necessity. The VA appraiser will verify that these parts of the house meet the minimum MPRs. If they don’t, the seller will need to repair the item that fails to meet the standard, or the underwriter will not approve the loan.
- Mechanical Systems: The appraiser will visually confirm that the required mechanical systems are in place and in good condition. They will not test the equipment.
Sanitation and Habitability
- Water Supply: Whether on city services or a private well (common in rural areas), the water must be potable and consistently available. If a bathroom or sink does not have safe, reliable water flowing at the time of inspection, the appraiser will note it in the report. Before closing, the issue must be repaired to a satisfactory condition.
- Sewage Disposal: Proper disposal of sewage waste is required.
- Living Space and Size: The home must have a functional kitchen, at least one bathroom, sleeping area(s), and all major systems in working order.
- All-Weather Road Access: Especially important in mountain towns or desert homes where seasonal roads can be washed out.
- Proper Drainage: California’s dry spells, followed by flash floods, make drainage critical. The property must drain water away from the home and avoid standing water that might cause health and safety issues.
Environmental Hazards
- Pests: Termites are a significant concern in California. To meet the MPRs, pest inspections are now required by the VA in California, as the state is considered a high-risk area for pest infestations. If termites are found, the seller will have to remediate before closing.
- Earthquakes and Wildfires: While MPRs don’t mandate seismic retrofits or defensible space, appraisers do look for damage related to these hazards. For example, large cracks in walls or the foundation would be an immediate red flag and noted in the appraisal report.
- Lead-Based Paint: Still a factor in homes built before 1978. If there is peeling paint, it must be corrected to meet the MPRs.
Marketability
Residential Purpose: The home must have a functional kitchen, at least one bathroom, sleeping area(s), and all major systems in working order.
Special Considerations for California Properties
Three primary areas require special consideration for California properties. If the property you are considering falls under one of these categories, it’s a good idea to have a conversation with your real estate agent and loan officer before making an offer.
Manufactured and Modular Homes
In California, manufactured homes are more common in rural and affordable housing markets. These must be permanently affixed to a foundation, meet HUD standards, and be classified as real property (not personal property)
Barndominiums and Unique Builds
California’s zoning and building diversity means you’ll sometimes come across converted barns, tiny homes, or accessory dwelling units (ADUs). These can qualify for VA loans if they adhere to property zoning requirements, they meet MPRs, and can be appraised appropriately, which isn’t always guaranteed.
Septic Systems and Private Wells
More common in rural parts of California, septic systems and private wells must meet the standards set by local county health departments. If there’s doubt, the appraiser may call for a specialized inspection.
What Happens If a Home Doesn’t Meet MPRs?
If the home doesn’t meet the Minimum Property Requirements, you have options:
Negotiate repairs with the seller: In many cases, sellers are willing to make repairs to facilitate a smooth transaction.
Escrow holdbacks: Some repairs can be completed post-closing with lender approval.
Waiver requests: For minor issues, your lender can sometimes request a waiver from the VA. This is a case-by-case basis and a last resort solution.
Tips to Prepare as a California VA Buyer
- Work with a VA-savvy real estate agent: They can spot red flags and guide you toward MPR-compliant homes.
- Read the listing carefully: Older homes, flips, or rural properties may require more frequent repairs.
- Always get a home inspection: It goes beyond MPRs and gives you leverage during negotiations.
- Ask your lender early about property types: Not all lenders work with manufactured homes or unique builds.
Final Thoughts on MPRs
MPRs can feel like a hurdle, but they’re really a homebuyer protection. In a state as dynamic (and expensive) as California, these minimum standards give veterans peace of mind—and a better shot at long-term success as a homeowner.
If you’re starting your homebuying journey, connect with a VA-approved lender and a real estate agent familiar with California’s landscape.
Together, you’ll find the right home—and one that checks all the VA’s boxes.