MRP Property Valuation & Appraisal 2

Question 1

What document does the VA issue to communicate the appraiser's determined value of a property to the lender and borrower?

Accepted Answer

Notice of Value (NOV)

Answer

The VA issues a Notice of Value (NOV) that states the appraiser's opinion of value and any required repairs or conditions.

Question 2

When a VA appraisal comes in below the purchase price, what option is available to the veteran buyer?

Accepted Answer

The buyer can invoke the VA escape clause and withdraw without penalty

Answer

The VA escape clause allows veteran buyers to withdraw from a purchase contract without forfeiting earnest money if the property appraises below the purchase price.

Question 3

Which appraisal approach is typically given the MOST weight for single-family residential properties used in VA loans?

Accepted Answer

Sales comparison approach

Answer

The sales comparison approach is given the most weight for single-family homes because it best reflects actual market activity and buyer behavior.

Question 4

How long is a VA appraisal (Notice of Value) valid for loan purposes?

Accepted Answer

1 year

Answer

A VA Notice of Value is valid for 180 days (approximately 6 months) from the date it is issued.

Question 5

What is the term for the process where a VA-assigned appraiser inspects the property to ensure it meets Minimum Property Requirements (MPRs)?

Accepted Answer

VA appraisal with MPR review

Answer

The VA appraisal process includes review of Minimum Property Requirements (MPRs) to ensure the property is safe, structurally sound, and sanitary.

(MRP) Military Relocation Professional Practice Test

(MRP) Military Relocation Professional Practice Test

MRP Property Valuation & Appraisal 2