My VA Appraisal Came In Low (or I Never Saw It). Now What?

The question

You're under contract with your VA loan. Then the appraisal comes in short. Or nobody has sent it to you at all.

What are your rights? And what can we still do before closing?

The straight answer

• You get a copy, free. Federal law says your lender has to send you every appraisal on a first-lien home loan. It's due as soon as it's done or 3 business days before closing, whichever comes first. (12 CFR 1002.14)
• VA goes a step further. The same day the Notice of Value (NOV) is issued, the lender has to send you the NOV and the appraisal report. The NOV is VA's official "reasonable value" for the home.
• Low isn't the end. You get two chances to fix it before closing, and your Texas contract protects your earnest money if the value stays low.

Haven't seen yours? Ask your loan officer for the NOV and the full report. You're entitled to both.

Step 1: Tidewater (before the report is final)

Tidewater is VA's early warning. If the appraiser thinks the value will land under the sales price, they have to tell whoever ordered the appraisal before finishing the report.

Then there are 2 business days to send in more sales for the appraiser to consider. For each one, VA wants the address, sales price, sale date, square footage (VA calls it gross living area), and the listing if it was listed.

What I do in those 2 days, wearing both hats:

• As your Realtor, I pull closed sales that really match the house: same area, size, age and features.
• As a loan officer, I know what an appraiser can actually use. So we send solid comps, not wishful ones.
• No pressure, just data. VA says this is for sharing sales data, not pushing the appraiser to a number.

Step 2: Reconsideration of Value (after the NOV)

Still short once the NOV is out? You can ask for a Reconsideration of Value, or ROV.

• You ask, in writing. The Veteran makes the request. It can go to VA through your lender.
• Bring support. Better comparable sales, or facts about the house the appraiser missed. VA's Handbook calls market data "encouraged," and VA's training for lender reviewers says the requester must provide it. Either way, bring it.
• Timing. VA staff review within 5 business days. If VA orders a field review, that can take up to 20 business days.
• Result. If VA agrees the value should go up, it issues an amended NOV.

Build that time into your closing date.

Step 3: If the value stays low

You've got four moves:

• Renegotiate. The seller drops the price to the VA value.
• Meet in the middle. The price comes down some, and you cover the rest.
• Pay the gap. It has to be your own cash, not borrowed money, unless VA approves.
• Walk away. You get your earnest money back. VA notes you won't get back what you spent on inspections or the appraisal.

That last option is the VA escape clause (38 CFR 36.4303(k)). In plain words: if the price is more than VA's value, you don't have to buy, and you don't lose your earnest money. You can still choose to go ahead.

In Texas, that protection sits in Paragraph 4 of the TREC Third Party Financing Addendum (TREC No. 40-11). In plain words, it says:

• You don't have to close or forfeit earnest money if the price is more than VA's reasonable value.
• The seller may lower the price to the VA value, and your loan and down payment adjust to match.
• If you pay above VA value, the extra is cash from a source you disclose to VA.
• The usual "3 days before closing" deadline in Paragraph 2B doesn't apply to Paragraph 4.

For Kaufman and Forney sellers taking a VA offer

The VA appraisal also checks Minimum Property Requirements (MPRs). VA's shorthand is safe, sound and sanitary. Things like:

• Safe drinking water, hot water, working bathrooms and safe sewage disposal
• Heating, electrical and other systems that are safe to run
• A sound roof and structure, plus crawl space access and ventilation

Cosmetic stuff and updates aren't MPRs.

Texas is on VA's list of states where wood-destroying insect (termite) information is required before the NOV. VA lets the Veteran pay for that inspection and any MPR repairs, but who pays is negotiable. A Veteran can also ask VA to waive some repairs, with the lender's OK, if the home is still safe and livable.

A Kaufman County example

Illustration only. Say you're under contract on a $350,000 home in Forney, and the NOV comes back at $340,000. That's a $10,000 gap.

Before any of that, we'd try Tidewater and, if needed, an ROV.

Plan for the appraisal before you write the offer

Using your VA benefit in Kaufman, Forney or Rockwall? Text me at 972-951-6987 before you write the offer. A Realtor who's also a VA loan officer can plan for the appraisal up front.

— Dylan Hernandez, USMC Gunnery Sergeant (Ret.) | Team Leader, DH Real Estate Group | dylanhernandezsellsdfw.com

Disclosures

This article is for general information only and is not legal, financial, or tax advice. It is not a loan offer or commitment to lend. Dollar figures are illustrations only. VA appraisal policy, VA timeframes, and TREC forms can change, and how they apply depends on your contract and loan. Read your own contract and talk with a Texas real estate attorney about your specific situation. Not all applicants will qualify.

Dylan Hernandez, Licensed Loan Officer, NMLS #2681224, One Real Mortgage, NMLS #198414. Equal Housing Opportunity. Real estate brokerage services provided by Real Broker, LLC. Dylan Hernandez, TREC #0787987. Texas Real Estate Commission Information About Brokerage Services | Texas Real Estate Commission Consumer Protection Notice

Sources (accessed October 7, 2026)

1. 12 CFR 1002.14, Regulation B, Rules on providing appraisals and other valuations (copy of all appraisals on first-lien dwelling loans, promptly on completion or 3 business days before consummation, whichever is earlier; no charge for the copy; notice of right within 3 business days of application): https://www.ecfr.gov/current/title-12/chapter-X/part-1002/section-1002.14
2. VA Loan Guaranty Service, "VA Appraisal Policies," bulletin, Dec. 16, 2021 (Tidewater: 2 business days to submit sales data, Handbook Ch. 10, Topic 8; ROV: Veteran may request after NOV, VA review within 5 business days, amended NOV, Handbook Ch. 10, Topic 22; repair waivers, Ch. 12, Topic 44): https://content.govdelivery.com/accounts/USVAVBA/bulletins/300ac69
3. VA, 2023 Loan Guaranty Conference SAR Training (Tidewater data requested: address, price, sale date, GLA; ROV written request after NOV, requester must provide supporting data, Ch. 10, Topic 22; lender/SAR must send the Veteran the NOV and appraisal the same day the NOV is issued, Ch. 13, Topic 3; MPR repair waivers, Ch. 12, Topic 44): https://www.benefits.va.gov/HOMELOANS/documents/conf/2023-sar-training.pdf
4. VA Lenders Handbook (VA Pamphlet 26-7), Ch. 10, Topic 8 (Tidewater; "process is for sharing market data only") and Topic 22 (ROV; market data encouraged but not required; 5 business days; field review within 20 business days), change date March 11, 2019. Official link https://www.benefits.va.gov/WARMS/pam26_7.asp redirected to VA's KnowVA portal on Oct. 7, 2026; text confirmed via a third-party verbatim copy: https://claudeforcompliance.com/regs/va-m26-7-ch10-t22/ and https://claudeforcompliance.com/regs/va-m26-7-ch10-t08/
5. VA, Congressionally Mandated Report, "Recommendations for Improving Appraisal Delivery Times," 2023 (Tidewater and ROV summary): https://benefits.va.gov/HOMELOANS/documents/congressionalreports/2023-cmr-recommendations-for-improving-appraisal-delivery-times.pdf
6. 38 CFR 36.4303(k), VA amendatory ("escape") clause: https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/section-36.4303
7. VA Home Loan Guaranty Buyer's Guide, April 2022 (escape clause must be in the contract; options if the appraisal is low; earnest money back but not inspection or appraisal costs; NOV contents): https://www.benefits.va.gov/HOMELOANS/documents/docs/VA_Buyers_Guide.pdf
8. Texas Real Estate Commission, Third Party Financing Addendum, TREC No. 40-11 (11-04-2024, effective Jan. 3, 2025), Paragraph 4 FHA/VA Required Provision and Paragraph 2B: https://www.trec.texas.gov/sites/default/files/pdf-forms/40-11.pdf and form page https://www.trec.texas.gov/forms/third-party-financing-addendum-0
9. VA, Basic MPR Checklist (SAR training; space, mechanical systems, water and sanitary facilities, crawl space, ventilation; authoritative source is Handbook Ch. 12): https://homeloans.va.gov/SAR_TPSS/runtime/pdfs/ja_basicMPRchecklist.pdf
10. VA, 2017 Lender Conference slides, MPRs (safe, sound, sanitary; cosmetic work and updating are not MPRs; waivers): https://benefits.va.gov/homeloans/documents/docs/2017_tuesday.pdf
11. VA, Local Requirements, Wood-Destroying Insect Information (Texas listed as entire-state requirement): https://www.benefits.va.gov/HOMELOANS/appraiser_cv_local_req.asp
12. VA Circular 26-22-11, Pest Inspection Fees and Repair Costs, June 15, 2022 (Veterans may be charged WDI inspection fees where required by the NOV and may pay MPR repairs; encouraged to negotiate with the seller): https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-22-11.pdf
13. VA, Circulars, Calendar Years 2021 to Present (checked for any newer ROV or Tidewater circular; none found through Circular 26-26-2, Aug. 11, 2026): https://www.benefits.va.gov/homeloans/resources_circulars.asp