VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New Construction Sold by the Lender
VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New Construction Sold by the Lender.
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Verbatim provisions from VA Lenders Handbook (VA Pamphlet 26-7), Chapter 10, Topic 20 — New Construction Sold by the Lender — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
VA Pamphlet 26-7, Chapter 10 (Appraisal Process), Topic 20 — New Construction Sold by the Lender
Topic 20. New Construction Sold by the Lender Change Date: March 11, 2019 This Chapter has been revised in its entirety. a. Appraisal Request If a lender acquires title to a newly constructed home due to a builder’s bankruptcy or cessation of business, the lender must order the appraisal as follows: As "existing", not "new", construction, and As "IND", not "LAPP", as properties sold by the lender are not eligible for processing under LAPP. b. Documentation Required The lender must: provide evidence of property ownership, complete any repairs needed for the property to meet VA’s MPRs, obtain a certificate of occupancy from the local authority, and obtain the Veteran’s signed acknowledgement that "This property is being purchased as existing construction from a lender who acquired this new construction property from the builder. There is no warranty and VA will not provide assistance with any construction defects."
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