VA issued Circular 26-22-13 permitting the use of an exterior-only or desktop appraisal for purchase transactions. Per the Circular, a lender may use an exterior-only or desktop appraisal for a purchase transaction if:
- The lender is approved to participate in the Lender Appraisal Processing Program;
- The purchase price does not exceed the current conforming loan limit for the properties jurisdiction;
- The dwelling is a single family (1-unit) home (excluding manufactured homes, condominiums, properties on a leasehold estate and properties undergoing renovation); and
- The borrower is making a down payment of at least 20% of the purchase price, or more than 7 business days have elapsed since the lender requested the appraisal and the case remains unassigned in VA’s system.
The Circular went into effect July 27, 2022.
Click to view the VA Circular 26-22-13: https://www.tenaco.com/wp-content/uploads/2022/08/VA-Circular-26-22-13-07-27-22.pdf
Click to view the VA Circular 26-22-13 Exhibit A: Appraisal Assignment Waterfall: https://www.tenaco.com/wp-content/uploads/2022/08/VA-Circular-26-22-13-07-27-22-Exhibit-A-Appraisal-Assignment-Waterfall.pdf
Click to view the VA Circular 26-22-13 Exhibit B: Appraisal Report Supplemental Information: https://www.tenaco.com/wp-content/uploads/2022/08/VA-Circular-26-22-13-07-27-22-Exhibit-B-Appraisal-Report-Supplemental-Information.pdf
