Which loan typically requires an appraisal by the Veterans Administration?

A VA loan is specifically designed for eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. One of the key features of this loan program is that it does require an appraisal, which is conducted to ensure that the property's value meets the minimum standards set by the Veterans Administration. This appraisal not only assesses the market value but also ensures that the property is safe, structurally sound, and suitable for the veteran's occupancy.

The necessity of an appraisal by the VA helps protect both the lender and the veteran from potential financial loss and ensures that the borrower is making a sound investment in a property that meets specific guidelines. This differentiates the VA loan from other types of loans, such as FHA, conventional, or USDA loans, which have their own appraisal requirements or processes. Focusing on this aspect of the VA loan highlights the importance of the appraisal in maintaining the integrity of the loan program and its benefits for veteran borrowers.