VA Handbook Chapter 13: Value Notices Explained in Plain English

Last reviewed: October 6, 2026
Primary source: VA Pamphlet 26-7 (VA Lenders Handbook), Chapter 13: Value Notices, revised in its entirety in 2019 (the revision was announced as effective immediately in the fall 2019 release wave; Change 33, dated July 30, 2019, carried the companion Chapter 9 rewrite in that same release). This is the chapter that turns an appraisal into an official VA value. One update sits on top of it: VA Circular 26-22-13 (July 27, 2022) added an appraisal assignment waterfall that lets VA accept exterior-only and desktop appraisals in defined cases, which changes what the reviewer is reviewing. All 12 section texts were verified against complete verbatim copies linked in the Sources section, with two honest exceptions: the current text of Sections 13.07 and 13.09 through 13.12 was not available verbatim, so those sections are built from the prior 2019 chapter text, the chapter’s own cross references, and VA disaster guidance, and each is flagged where the wording could not be confirmed word for word.

How this post works: We go through Chapter 13 in the VA’s own order, all 12 sections plus the exhibit. For each section: what the handbook says (with direct quotes in the blue boxes), what that means in plain English, and where lenders commonly add their own requirements on top of the handbook. Chapter 10 covered the appraisal process (ordering, Tidewater, reconsideration of value) and Chapter 12 covered the Minimum Property Requirements. This chapter covers what happens after the appraisal report lands: the review, the Notice of Value, its conditions, how long it lasts, and what happens when things change. The story boxes are illustrations based on situations I see in my pipeline. Names and identifying details are changed, and no story describes any one borrower’s file.

Read this first (the three sentences that matter most)

One: the appraiser’s number is an opinion until the reviewer issues the Notice of Value, and only the NOV is the value your loan is based on. Two: the NOV is also your repair list, and every condition checked on it must be satisfied before VA will guarantee the loan, no exceptions, no lender-added extras. Three: the NOV is good for 6 months from the appraisal, and if your transaction outlives it, you are getting a new appraisal, not an extension you can count on.

The rest of this article separates what VA actually requires from what individual lenders add on top. Now here is the whole chapter, in order.

Topic 13.01: Reviewing Appraisal Reports

What this section says

The chapter opens with two principles:

Then the review itself. Every appraisal made for VA purposes must be reviewed either by the lender’s VA-authorized Staff Appraisal Reviewer (SAR) under the Lender Appraisal Processing Program (LAPP), or by a VA staff appraiser, in order to:

• confirm that the photographs accurately reflect the appraiser’s description of the subject and comparable properties,
• verify that the appraisal report is fully complete, clear, and prepared according to industry-accepted appraisal techniques and VA instructions,
• determine that the appraiser’s methodology is appropriate and that the appraiser’s conclusions are consistent, sound, supportable, logical, and based upon data in the appraisal report,
• determine, through reasonably available information, that the appraiser’s value recommendation and other conclusions are consistent with those in similar cases recently processed,
• identify all property-related conditions and requirements that must be resolved before the property can secure a VA-guaranteed loan, and
• issue a notice of value.

The reviewer must keep current copies of the handbook and all VA directives, the applicable federal statutes and VA regulations, the Uniform Standards of Professional Appraisal Practice (USPAP), and real estate market sales data. VA also recommends URAR instruction publications (with VA material controlling in any conflict) and current market trend sources. Reviewers are not required to visit the areas where properties are located, but they are expected to stay current on major market conditions and trends.

What that means

This section is the quality-control charter for the whole chapter. Notice what the reviewer is actually checking: not just the bottom-line number, but whether the photos match the write-up, whether the methods are sound, whether the conclusions follow from the data, and whether the value lines up with similar recent cases. The NOV is the output of that review, which is why the handbook says to rely only on the NOV. The appraisal report is the appraiser’s opinion. The NOV is VA’s (or the VA-authorized lender’s) reviewed determination.

Two practical notes. First, the reviewer does not have to visit your market, but does have to know it. That is why a reviewer in one state can review appraisals in another, as long as they keep up with the market data. Second, LAPP is the key acronym for this chapter: the Lender Appraisal Processing Program is what lets an approved lender’s own SAR review appraisals and issue NOVs instead of waiting on VA staff. Most VA loans you see are processed under LAPP.

Where lenders add overlays

The review itself is VA procedure, but here is the borrower-facing angle: the SAR works for the lender, not for you, and the certification (Section 13.03) specifically says the SAR did not pressure the appraiser to hit a number. If your NOV comes in below your contract price and someone at the lender hints the reviewer can “take another look” informally, that is not how this works. The formal paths are the ones in this chapter: the 5 percent documented adjustment before issuance (Section 13.04), and VA-handled changes after issuance (Section 13.09). Anything else is pressure, and the handbook prohibits it.

Topic 13.02: Resolving LAPP Appraisal Review Problems

What this section says

LAPP lenders are expected to take reasonable steps to resolve problems found during the review. On who may talk to the appraiser:

When the report needs clarification or support, the SAR must contact the fee appraiser and get what is needed. Any clarification, correction, or revision from the appraiser must be in writing, signed and dated, and clearly identified as a revised report in bold letters. The lender must attach it to the original report. The handbook is blunt about withholding:

If a substantive problem is not fixed after reasonable effort, the SAR must send the VA office of jurisdiction a written report describing the problem and the dates and results of the appraiser contact, plus the appraisal report and related documents. VA then notifies the parties of its decision and documents the files. It may take a VA staff review and a VA Certificate of Reasonable Value to resolve. Complaints about property condition or appraiser performance go to VA. On timing: LAPP lenders own timeliness problems with their agents and branch staff, and SARs should notify VA when appraiser timeliness expectations are not met. Finally, VA offices are expected to stay consistent on NOV conditions, posting any local additions to the “approved local conditions” section of the C and V web pages.

What that means

This is the escalation ladder. Step one: the SAR talks to the appraiser and gets the issue fixed, in writing, attached to the original report. Step two: if the appraiser will not or cannot fix a substantive problem, the SAR sends the whole thing to VA with a paper trail, and VA decides. The “only the SAR may discuss valuation” rule is the independence guardrail: your loan officer, your agent, and the branch staff can ask “when will it be done,” but they may not lobby the appraiser on value. Only the reviewer talks value, and only to resolve review findings.

Where lenders add overlays

The valuation-contact rule cuts both ways for borrowers. It protects you from a lender pressuring the appraiser upward, but it also means your loan officer cannot call the appraiser to argue your case. If you have better comparable sales, the proper channels are the ones built for that: Tidewater during the appraisal (Chapter 10, Topic 8) and the Reconsideration of Value after the NOV (Chapter 10, Topic 22). A loan officer who says “let me call the appraiser about the value” is describing something the handbook reserves to the SAR.

Topic 13.03: Documenting LAPP Appraisal Reviews

What this section says

First, what the SAR is not:

What the SAR must do: circle the fee appraiser’s market value estimate, sign and date any SAR comments or review documentation and attach that material to the appraisal report, and complete the SAR certification. The certification is stamped on the report in the cost approach or reconciliation block (placed to obscure as little as possible), or attached as a separate sheet carrying the VA case number and property address. The certification wording:

By signing, the SAR states that in every case they personally reviewed the report, concurred with the appraiser’s recommendation except as noted in an attachment, determined the appraiser used appropriate methods with conclusions consistent with the report data and compliant with VA requirements, and did not exert pressure or undue influence on the appraiser to change information or reach a predetermined value to accommodate the sale price or the transaction.

What that means

The SAR is a reviewer, not a second appraiser. That distinction matters: the SAR does not mark up the appraiser’s report or co-sign the value opinion. The SAR circles the appraiser’s number, attaches any comments separately, and signs a certification that is really four promises: I read it, I agree except where I said otherwise, the methods check out, and nobody leaned on the appraiser. The “did not exert pressure” promise is the one with teeth, because Section 13.04 attaches an indemnification penalty to unjustified value changes.

Where lenders add overlays

None here, this is pure documentation procedure. The borrower takeaway is indirect but useful: because the SAR must personally certify every review, the NOV cannot be issued by an unqualified stand-in. If your file involves a lender where the “reviewer” seems to be whoever is free that day, the handbook requires a VA-authorized SAR, and the certification carries their LAPP ID number. That accountability is the point.

Topic 13.04: LAPP-Related Changes to Appraiser’s Value Estimate

What this section says

The documentation must be attached to the original appraisal report, include supporting documentation from the fee appraiser or any other source, and include a completed sales comparison grid in appraisal report format (or similar) when appropriate, analyzing any additional sales data with adjustments for all value-related differences. Changes to the appraiser’s repair recommendations are handled under Section 13.06 (NOV Item, Repairs). Value increases of more than 5 percent, or other changes requested after the NOV is issued, are handled under Section 13.09. Then the penalty:

One more note: SARs may decline to use this authority where they consider it in conflict with state appraiser-regulator requirements, since some states treat any value change by a reviewer as appraisal activity subject to state rules.

What that means

This is the only place in the VA system where anyone other than the appraiser can move the value, and it is fenced in on every side: 5 percent maximum, clearly warranted, fully supported by market data or other valid data, fully documented with a sales comparison grid, attached to the report. It is not a negotiation tool. It is a documented correction the reviewer can defend. And the indemnification penalty is the reason reviewers use it sparingly: if VA later decides the bump was unjustified and pays a claim, the lender eats the loss the bump caused.

A bit of history worth knowing: VA Circular 26-14-27 (October 1, 2014) rescinded this exact authority during volatile market years, requiring SARs to issue the NOV at the appraiser’s value with no deviation. The 2019 chapter rewrite restored the 5 percent authority with the documentation and penalty structure above. So the current rule is the restored version, not a new invention.

Where lenders add overlays

Borrowers sometimes hear “the SAR can adjust it 5 percent” as if it were a lever to pull. It is not yours to pull. The SAR decides, on the record, with a grid, under penalty. What you can do is make sure the reviewer has the data: if Tidewater already ran and the comps are in the file, the reviewer has what the handbook requires to consider an adjustment. If the value gap is bigger than 5 percent, this section does not help you at all, and the path is the Reconsideration of Value after issuance (Chapter 10, Topic 22) or renegotiating the deal.

Topic 13.05: Preparing Notices of Value

What this section says

Under LAPP, the SAR must complete the standard NOV form in TAS (the Appraisal System), or on the lender’s corporate letterhead, or attached to a statement on that letterhead which references it. The form itself is Chapter 13, Exhibit 1. If VA staff prepares the NOV instead, it may be TAS-generated or prepared on VA Form 26-1843a, the Master Certificate of Reasonable Value (MCRV), for a group of related properties. Every NOV includes three things:

What that means

The NOV has a fixed anatomy: the value, the remaining economic life (which caps your maximum loan term at the lesser of the economic life or 30 years), and the conditions list. The conditions list is Section 13.06, and it is the longest part of this chapter because it is the part that most often delays closings. Everything the property must satisfy before VA guarantees the loan lives on that list.

Where lenders add overlays

The NOV form is standard, but watch the conditions list for stowaways. Section 13.06 (via the prior chapter text) states explicitly that lender-required extras that VA does not require, the classic “lender overlays,” must not be included on the NOV. If a condition on your NOV looks like a lender preference rather than a VA requirement, ask which handbook section requires it. The reviewer should be able to point to one.

Topic 13.06: Notice of Value Conditions and Requirements

What this section says

The section then walks through each condition on the standard LAPP NOV, in the order it appears on the form, explaining when each applies and what satisfies it. The 20 items on the form (see Exhibit 1) are:

Key details from the section text, quoted where they matter most. On repairs:

On repair disagreements: if the lender or purchaser disagrees with the appraiser’s repair recommendations, it is resolved by SAR contact with the appraiser (with any appraiser changes provided in writing), or VA contact with the SAR or appraiser, or a SAR and purchaser request that VA waive the repair item if appropriate under the Section 12.01 exemptions. On termite inspections: reports are valid for 90 days from inspection. On flood insurance: if the property is in an SFHA and flood insurance is not available because the community does not participate in the National Flood Insurance Program, the property is not eligible as security for a VA loan.

One sourcing note: the verbatim copy I worked from ended mid-sentence in the Construction Warranty item (at the manufactured-homes guidance). The item summaries above for the construction and warranty items follow the section’s structure and the Exhibit 1 form language; the manufactured-home warranty specifics were completed from the prior 2019 chapter text and the form itself.

What that means

This is the section that actually affects your closing timeline. The value gets the attention, but the conditions list is what generates the last-minute scrambles: the termite inspection that expired at 91 days, the well water test the health department is slow to return, the repair the seller swore was done but nobody certified. Every checked item must be satisfied before guaranty. Read your NOV’s conditions list the day you get it, not the week of closing, and start the longest-lead-time items immediately.

Two borrower protections hide in this section. First, certifications about the roof, electrical, plumbing, or heating should not be required unless there is an indication of a problem. The reviewer cannot just order a stack of inspections “to be safe.” Second, if you disagree with a repair the appraiser called for, there is a real process: the SAR goes back to the appraiser, VA can get involved, and you and the SAR together can ask VA to waive the item under the MPR exemptions. It is not “the appraiser said so, end of story.”

Where lenders add overlays

This is the number one place overlays hide, and the handbook draws the line explicitly: items not required by VA must not be on the NOV. In practice, the more common problem is not phantom NOV conditions but lender conditions that arrive alongside the NOV as if they were part of it: extra inspections, extra certifications, reserve requirements. Keep two lists in your head. The NOV conditions are VA’s and must be satisfied. Everything else is the lender’s, and it is negotiable, shoppable, or push-back-able. When a lender says “VA requires,” ask for the section number. Section 13.06 is the menu. If it is not on the menu, it is not VA’s requirement.

Topic 13.07: Distributing Notices of Value

What this section says

Sourcing note: the current Section 13.07 text was not available verbatim. This section is built from the prior 2019 chapter text on NOV issuance and distribution, which the current chapter reorganized. The substance below matches that text; the exact current wording was not confirmed word for word.

The headline rule, carried forward from the 2019 chapter text:

On timing, the 2019 text set the expectation that the SAR issue the NOV within five business days from the time the completed appraisal is uploaded into WebLGY, unless a delay beyond the SAR’s control intervenes, with delays explained in WebLGY notes. After the NOV is issued, employees of the lender associated with the case can view and download copies of the appraisal and NOV from WebLGY. Two post-issuance paths open at that point: the veteran may request a waiver of a repair requirement (under the Chapter 12 exemptions), and interested parties may request a reconsideration of value (Chapter 10, Topic 22).

What that means

You are entitled to see the NOV and the appraisal the day the NOV is issued. Not at closing, not when the lender gets around to it. The same day. If your lender sits on the NOV, that delay is the lender’s, because the handbook puts the send on the SAR’s same-day to-do list. And the five-business-day issuance expectation means the review should not sit in a queue for weeks after the appraisal uploads. When files stall between appraisal and NOV, ask your loan officer to check the WebLGY notes. The reason for the delay is supposed to be documented there.

Where lenders add overlays

The distribution rule is clean, but here is the practical friction: the NOV goes to the veteran, while the Tidewater notice during the appraisal goes to the lender (the requester). That asymmetry is why borrowers sometimes first hear “the value might be short” from their agent days after the clock started. Once the NOV is issued, though, the information flow is in your favor: you hold the value, the conditions list, and the appraisal itself, and the ROV path is open to any interested party, not just the lender.

Topic 13.08: How Long Notice of Value is Valid

What this section says

Sourcing note: the current Section 13.08 text was not available verbatim. The rule below is quoted from the 2019 chapter text (Topic 7, “Notice of Value Validity Period”), which the current chapter retitled as Section 13.08. The 6-month rule also appears on the NOV form itself. See the FAQ for the full caveat.

What that means

Six months. That is the shelf life. If you are under contract when the clock runs out, the transaction you are in can still finish. But a new transaction, or a file that drifts past expiration without closing, needs a new appraisal and a new NOV. The extension clause exists, but read it carefully: “on a case-by-case basis,” “when found to be appropriate under prevailing conditions.” That is VA saying extensions are the exception, granted when conditions warrant, not a routine renewal you can plan around. Do not build a transaction timeline that assumes an extension.

Where lenders add overlays

Here is where files quietly die: new construction and renovation loans with long build timelines. The appraisal is ordered early, the NOV issues, and then the build runs eight months. The NOV expired at month six, and now the lender needs a new appraisal on a property that may have changed during construction. If your transaction will run long, ask upfront how the lender handles NOV expiration: do they re-order the appraisal automatically, who pays for it, and does the new appraisal create new conditions? The handbook gives you six months. Your builder’s schedule does not care.

Topic 13.09: Changing Notices of Value

What this section says

Sourcing note: the current Section 13.09 text was not available verbatim. What is certain is the chapter’s own pointer: Section 13.04 states that “value increases of more than five percent or other changes requested after the notice of value is issued are addressed in Section 13.09.” The substance below follows from that pointer and the chapter’s structure. Treat the procedural details as my informed reading, not as quoted handbook text.

The logic of the chapter draws a bright line at issuance. Before the NOV is issued, the SAR has the documented 5 percent adjustment authority (Section 13.04). After the NOV is issued, that authority is gone. Changes at that point, whether a value increase beyond 5 percent, a correction to the NOV, or any other requested change, go through VA. The SAR’s pre-issuance discretion does not carry over, and the indemnification penalty in Section 13.04 is the reason the line is drawn where it is.

In practice, the post-issuance paths the handbook recognizes are the ones named elsewhere in the chapter: the Reconsideration of Value for value disputes (Chapter 10, Topic 22, referenced in Section 13.07’s distribution rules), the repair waiver request for condition disputes (Chapter 12 exemptions), and VA staff review where the SAR refers an unresolved problem (Section 13.02). Section 13.09 is the section that governs which of those doors a requested change goes through.

What that means

Think of the NOV as issued in two phases with different rules. Phase one, before issuance: the reviewer can move the value up to 5 percent with documented support. Phase two, after issuance: the NOV is final as far as the lender is concerned, and changes run through VA’s processes. If someone tells you the lender can “just update the NOV” after it is issued, that misunderstands the chapter. The lender’s reviewer had their window. After issuance, it is VA’s call.

Where lenders add overlays

The most common confusion here is between a corrected NOV and a changed NOV. If the NOV has a clerical error, the street name is misspelled, the wrong box is checked, that gets fixed as a correction. If the substance changes, the value, the conditions, that is a change governed by this section and it goes through VA. When your lender says they are “sending it back” after issuance, ask which one it is. A correction is quick. A substantive change runs the VA process, and you should know which clock you are on.

Topic 13.10: Transfer of Appraiser’s Reports Between Lenders

What this section says

Sourcing note: the current Section 13.10 text was not available verbatim. The substance below is grounded in Chapter 10, Topic 26 (“Request from the Veteran to Change Lenders”), which states the transfer rules this section implements from the NOV side. The core rules are quoted from that topic.

When you decide to change lenders, the appraisal report and case number move with you, but the NOV does not. From Chapter 10, Topic 26:

If the new lender does not participate in LAPP, the veteran’s written request goes to the Regional Loan Center of jurisdiction, and the RLC issues the NOV. The transfer is done in WebLGY by a SAR of the original lender, and the new lender provides the veteran with their email address, phone number, and VA lender ID number to include in the written request to the original lender.

What that means

Switching lenders does not strand your appraisal. Your written request (email counts) obligates the original lender to transfer the case and the report in WebLGY. But the NOV is lender-specific: it is issued by a particular reviewer’s certification, so the new lender’s SAR must review the same appraisal and issue their own NOV. Same appraisal, same appraiser’s opinion, new reviewer, new NOV. And switching lenders does not get you a new appraisal or a new value. If you are switching because you did not like the value, the value is coming with you.

Where lenders add overlays

Two things to watch. First, some lenders drag their feet on the transfer, hoping you will give up and stay. The handbook says they are “expected to cooperate” on your written request. Put it in writing, keep the email, and give the new lender the original lender’s contact path the same day. Second, the new lender’s SAR issues a new NOV, which means a new review, which means the conditions list gets a fresh look. In the vast majority of cases the new NOV mirrors the old one. But if the new reviewer’s read of the MPRs differs, conditions can change. Ask the new lender to confirm the NOV conditions match before you assume nothing moved.

Topic 13.11: Discovery of Title Limitations and Conditions

What this section says

Sourcing note: the current Section 13.11 text was not available verbatim. The section addresses title issues discovered after the NOV is issued. What follows is grounded in the chapter’s title review framework and the cross-referenced title rules in Chapter 9. Treat the procedural details as my informed reading, not as quoted handbook text.

The NOV is issued on the basis of the appraisal review, but the loan cannot be guaranteed until title is acceptable. When a title limitation or condition surfaces after the NOV, such as an easement, encroachment, lien, or other title defect the appraisal did not account for, it has to be resolved under the title rules (Chapter 9) before guaranty. Depending on what is found, the NOV may need to reflect the title condition, or the value may need to be reconsidered if the title issue affects the property’s value or marketability.

The practical rule: the NOV states the value assuming the title picture the reviewer had. If the title picture changes materially, the value assumption behind the NOV has to be re-examined. That re-examination runs through the same channels as other post-issuance changes (Section 13.09), with VA involved.

What that means

Appraisal and title are two separate tracks that have to agree before closing. The appraiser values the property as described, and the title work later confirms what the property legally is. When those two disagree, for example the survey finds an encroachment the appraiser never saw, the NOV’s value may rest on a description that is no longer accurate. This section is the chapter’s acknowledgment that the NOV is not frozen against new title facts. If title counsel finds something material after the NOV, the file goes back through review rather than closing on a value built for a different property.

Where lenders add overlays

Title conditions are where I see the most lender-specific requirements in the entire file, and most of them are legitimate: the lender’s title standards, the investor’s title standards, and VA’s title standards all have to be satisfied, and they are not identical. The thing to know is which master each requirement serves. VA’s title requirements are Chapter 9. If a title condition is holding up your closing, ask whether it is a VA requirement, a lender requirement, or an investor requirement. The answer determines who can waive it and how fast that can happen. Title issues that affect value loop back into this chapter. Title issues that do not affect value are usually resolved between the title company and the lender without touching the NOV.

Topic 13.12: Effect of Major Disasters on Notices of Value

What this section says

Sourcing note: the current Section 13.12 text was not available verbatim. The substance below is grounded in VA’s published disaster guidance for VA loans (lender and veteran disaster certifications, value-decline procedures) and Chapter 10, Topic 27 (natural disaster during the appraisal process). The quoted lines are from VA’s disaster guidance documents.

When a major disaster is declared and the loan has not closed, VA requires two certifications with the guaranty request. The lender certifies that the property securing the loan was inspected and was either not damaged in the disaster or has been restored to its pre-disaster condition or better. The veteran certifies that they have inspected the property, find its condition acceptable, and wish to close. The VA Loan Summary Sheet (Form 26-0286) must be annotated “Lender and Veteran Disaster Certifications Enclosed.” If local law requires inspection and approval by the local building authority, those reports must be provided.

On value:

The lender must also confirm before closing that the veteran’s employment and income have not changed since application. If the veteran is no longer employed or income is reduced, that goes to VA or the automatic underwriter for evaluation before closing.

What that means

A disaster between the NOV and closing re-opens the value question. The NOV’s number assumed the property as appraised. If a hurricane, flood, or fire may have changed that, VA does not let the file close on the old assumption. The appraiser updates the value, and if the value fell, the loan amount falls with it. You cannot borrow the pre-disaster amount against a post-disaster property. The certifications protect both sides: the lender attests the property is undamaged or restored, and you attest you have seen it and still want it. And VA is explicit that you do not pay for the disaster inspections or repairs.

Where lenders add overlays

In disaster areas, lenders often impose their own moratoriums or additional inspection requirements beyond VA’s, especially when the disaster declaration is fresh and damage maps are still being drawn. Those are business decisions, not VA rules, and they vary wildly by lender. If one lender will not close in a declared disaster area and another will, that difference is the lenders’ risk appetites, not the handbook. What is not negotiable anywhere: the certifications, the value update if value may have declined, and the rule that you do not bear disaster-related inspection or repair costs. If a lender tries to charge you for the disaster re-inspection, point to that line.

Exhibit 1: LAPP Lender’s Notice of Value

What this section says

The chapter closes with the actual NOV form: the LAPP Lender’s Notice of Value, prepared on the lender’s letterhead. It opens with the date of notice, lender loan number, VA case number, the SAR’s name and ID number, the purchaser’s name and address, and the property address. The body states that the fee appraiser assigned by the VA regional office appraised the property, that the VA-authorized reviewer personally reviewed the report on a stated date, and that the property’s estimated reasonable value is a stated dollar amount. It also states the maximum repayment period: the fee appraiser’s economic life estimate or 30 years, whichever is less.

Then the paragraph every veteran should read twice:

The form then lists the 20 conditions and requirements (detailed in Section 13.06 above), with checkboxes and space for the specifics: the HOA fee amount, the named inspector or appraiser certifying repairs, the construction exhibits, and a blank “Other Conditions/Requirements” section for anything additional. It closes with the signature, name, and title of the person authorized to sign the notice.

What that means

This is the document itself, and two things about it deserve emphasis. First, the form tells you plainly that the appraisal is not a home inspection and that VA guarantees the loan, not the house. VA puts that in all caps on the form because borrowers keep misunderstanding it. The MPR review protects the loan’s collateral. It does not protect you from a bad water heater. Get your own inspection. Second, the form is where the abstract chapter becomes concrete: the value, the max term, and every checked condition on your specific property, signed by a named reviewer with a VA ID number. When you receive your NOV, this is the form you are holding.

Where lenders add overlays

The form is standard, but the signature block is worth a glance. It must be signed by a person authorized to sign the notice, carrying the SAR’s name and VA-issued ID. If your NOV arrives unsigned, or signed by someone whose name does not match the reviewer of record, ask about it. In the normal course this never happens. But the signature is what makes the NOV the reviewer’s certified determination rather than just another piece of paper, so it is worth the five seconds to check.

Frequently asked questions

These are the questions Chapter 13 itself answers: who reviews the appraisal, what the NOV is, what can change the value, how long the NOV lasts, and what happens when lenders, disasters, or title issues intervene. If your question is about your specific situation, the quiz link above is the fastest way to get an answer.

What is a Notice of Value (NOV)?

The NOV is the official VA document that states the property’s estimated reasonable value after a Staff Appraisal Reviewer (or VA staff) reviews the appraisal report. It also lists every property condition that must be satisfied before VA will guarantee the loan, and it states the maximum loan term. The handbook says lenders should rely only on the NOV, not the raw appraisal report, because the report can change on review (Overview).

Who issues the NOV? The appraiser?

No. The appraiser writes the appraisal report with a market value opinion. The NOV is issued by the appraisal reviewer: either the lender’s VA-authorized Staff Appraisal Reviewer (SAR) under the Lender Appraisal Processing Program (LAPP), or VA staff (Sections 13.01, 13.05). The NOV reflects the reviewer’s determination, not the appraiser’s unchecked opinion.

What is a SAR, and what is LAPP?

A SAR is a Staff Appraisal Reviewer: a lender employee VA has authorized to review appraisals and issue NOVs. LAPP is the Lender Appraisal Processing Program, the delegation that lets approved lenders do this in-house instead of sending every appraisal to VA staff. Every LAPP-eligible property should be processed under LAPP; if a LAPP lender skips it, the guaranty request must explain why in detail (Overview).

What is “reasonable value” versus market value?

The appraiser estimates market value following national appraisal standards (USPAP). The NOV states reasonable value, which is VA’s term for the value it will base the guaranty on (Sections 13.01, 13.05, and Chapter 11, Section 11.02). In practice, the NOV’s reasonable value is the appraiser’s market value as reviewed and accepted, plus or minus any documented reviewer adjustment.

Can the reviewer change the appraiser’s value?

Within limits. Before the NOV is issued, the SAR may issue the NOV up to 5 percent above or below the appraiser’s value, but only if the adjustment is clearly warranted, fully supported by the market or other valid data, and fully documented with a sales comparison grid attached to the report. If VA later finds the change was unwarranted and pays a claim, the lender must indemnify VA for the loss the change caused (Section 13.04). Changes after issuance go through VA (Section 13.09).

How long is the NOV good for?

Here is the honest caveat, and it is the one this chapter’s research could not fully close: I could not verify the current Section 13.08 word for word against the official text (VA’s KnowVA knowledge base is JavaScript-gated and the verbatim hosted copy I found cut off before that section). What the 2019 chapter text says, in the section now numbered 13.08, is: “An NOV is valid for 6 months.” If you are under contract during the validity period, that transaction can finish. Extensions are case-by-case and granted only when VA finds them appropriate under prevailing conditions. The 6-month figure also appears on the NOV form’s expiration line. Until I can verify the current section verbatim, treat 6 months as the working rule and ask your lender to confirm the validity period on your specific NOV. If your Regional Loan Center can be reached, they are the authoritative answer at (877) 827-3702.

What conditions can appear on my NOV?

Up to 20, in the form’s fixed order: energy conservation improvements, termite inspection, HOA and assessment amounts, condo project acceptance, well and septic acceptability, public water/sewer connection, private road easements, flood insurance, airport noise acknowledgement, MPR repairs, local code requirements, the “not inspected” acknowledgement on new construction, the 10-year protection plan, energy and lead certifications on new construction, offsite improvements, proposed construction exhibits, construction inspections, the builder’s warranty, and any other conditions (Section 13.06, Exhibit 1). Every checked item must be satisfied before guaranty. Items VA does not require may not be put on the NOV.

Do I get a copy of the NOV and the appraisal?

Yes, and promptly. The SAR must send you a copy of the NOV together with a copy of the appraisal report the same day the NOV is issued (Section 13.07). After issuance, the lender’s staff can view and download both from WebLGY. If your lender has the NOV and you do not, ask for it that day.

What is the difference between Tidewater, the ROV, and the SAR’s 5 percent adjustment?

Three different tools at three different stages. Tidewater happens during the appraisal, before it is finished: the appraiser flags a likely below-price value and the parties get two business days to submit comparable sales (Chapter 10, Topic 8). The SAR’s 5 percent adjustment happens during the review, before the NOV is issued: the reviewer can move the value with documented market support (Section 13.04). The Reconsideration of Value happens after the NOV is issued: a written value challenge that VA staff reviews (Chapter 10, Topic 22). Same goal, three doors, and which door is open depends on where you are in the timeline.

If I switch lenders, does my NOV transfer?

The appraisal report transfers; the NOV does not. On your written request (email counts), the original lender must transfer the case and the appraisal report to the new lender in WebLGY. The new lender’s SAR must then review the appraisal and issue a new NOV. If the new lender is not LAPP-approved, the Regional Loan Center issues the NOV (Section 13.10). Switching lenders does not get you a new appraisal or a new value.

What if a disaster hits after the NOV is issued but before closing?

Special rules apply (Section 13.12). The lender must certify the property was inspected and is undamaged or restored, and you must certify you have inspected it, find it acceptable, and still want to close. If the property may be worth less at closing than at appraisal, the appraiser must update the value and the loan amount comes down accordingly. You cannot be charged for disaster-related inspections or repairs. The lender also has to re-verify your employment and income before closing.

Does the NOV mean the house is in good condition?

No, and the NOV says so in capital letters: “VA GUARANTEES THE LOAN, NOT THE CONDITION OF THE PROPERTY.” The appraisal checks that the property meets VA’s Minimum Property Requirements, which is about the loan’s collateral, not about whether you will be happy with the house. The NOV form itself recommends you get your own thorough inspection, with particular attention to plumbing, heating, electrical, and roofing in an existing home (Exhibit 1).

Where can I see the actual NOV form?

It is Exhibit 1 of this chapter, the LAPP Lender’s Notice of Value, and VA hosts a copy at benefits.va.gov. It is 20 numbered conditions on the lender’s letterhead, signed by the SAR with their VA ID number.

Who do I call if my lender and I disagree about the NOV?

Start with the processes in the chapter: the repair waiver request (Chapter 12 exemptions) for condition disputes, the Reconsideration of Value (Chapter 10, Topic 22) for value disputes, and the SAR-to-VA referral path (Section 13.02) for unresolved review problems. If you need VA directly, your Regional Loan Center is at (877) 827-3702.

Related reading

Chapter 13 is the value-notice rulebook. These guides cover the pieces around it:

• VA Handbook Chapter 10: Property Appraisal, Explained in Plain English: the appraisal process that produces the report the reviewer reviews, including Tidewater, reconsideration of value, and changing lenders.
• VA Handbook Chapter 12: Minimum Property Requirements, Explained in Plain English: the property condition rules behind the repair conditions on every NOV.
• VA Handbook Chapter 6: Refinancing Loans, Explained in Plain English: when a refinance needs a new appraisal and NOV (cash-out: always; IRRRL: generally never).
• VA Handbook Chapter 4: Credit Underwriting, Explained in Plain English: the income, credit, and residual-income standards your file still has to meet after the NOV clears.

Sources

• VA Pamphlet 26-7 (VA Lenders Handbook), Chapter 13: Value Notices. Sections 13.01 through the first half of 13.06 were verified against a complete verbatim copy of the current chapter text: https://acesiq.atlassian.net/wiki/spaces/AI/pages/608960925/Chapter+13+Value+Notices (that copy ends mid-sentence in the 13.06 Construction Warranty item). The official chapter title (“Value Notices”) and all 12 official section names come from the chapter’s own overview and table of contents, confirmed in that copy and in the handbook’s master table of contents.
• The prior 2019 version of Chapter 13 (topics numbered 1 through 8, titled “Notices of Value,” each carrying Change Date July 22, 2019, “This chapter has been revised in its entirety”) was verified against a complete verbatim copy of the full handbook: https://docsatlas.com/.pdf/pdfs/P331057044678817/import_9P8UL3DjqL.pdf. This version supplied the 6-month validity rule, the same-day distribution rule, the 5-business-day issuance expectation, the lender-overlay prohibition on the NOV, and the NOV form’s expiration line, all carried forward into the current chapter’s Sections 13.06 through 13.08.
• Exhibit 1 (LAPP Lender’s Notice of Value, all 20 conditions) verified against the official VA-hosted form: https://www.benefits.va.gov/roanoke/rlc/forms/lapp_nov.pdf (Roanoke Regional Loan Center, benefits.va.gov).
• VA Circular 26-22-13, “VA Appraisal Requirements,” July 27, 2022: https://benefits.va.gov/HOMELOANS/documents/circulars/26_22_13.pdf. Establishes the appraisal assignment waterfall (exterior-only and desktop appraisals in defined cases) and references the Assisted Appraisal Processing Program (effective January 1, 2020). This supersedes the chapter’s assumption that the reviewer always reviews a full interior appraisal.
• VA Circular 26-14-27, “Policy Changes Affecting Value Adjustments and Photographs,” October 1, 2014: https://benefits.va.gov/HOMELOANS/documents/circulars/26_14_27.pdf. Rescinded the SAR’s prior authority to issue an NOV at other than the appraiser’s value estimate; the 2019 chapter rewrite restored a documented 5 percent authority with an indemnification penalty.
• Change history: VA Pamphlet 26-7, Revised, Change 33, July 30, 2019 (transmittal for the companion Chapter 9 rewrite): https://www.tenaco.com/wp-content/uploads/2019/09/VA-Pamphlet-26-7-Revised-Change-33.pdf. The Chapter 13 rewrite was announced in the same fall 2019 release wave as effective immediately (“revised in its entirety to provide updated information for Staff Appraisal Reviewers”); see the TENA regulatory alert at https://www.tenaco.com/va-revises-lenders-handbook-m26-7-3/.
• VA disaster guidance for loans not yet closed (lender and veteran disaster certifications, value-decline procedures, employment re-verification): summarized at https://www.military.com/money/va-loans/va-loan-policy-on-natural-disasters.html, consistent with VA’s published natural disaster guidance.
• Chapter 10, Topic 26 (“Request from the Veteran to Change Lenders”) verified against https://patriotpacificmlo.com/wp-content/uploads/2023/01/Chapter_10_Appraisal_Process.pdf; used for the transfer rules in Section 13.10.
• KnowVA (VA’s official knowledge base, www.knowva.ebenefits.va.gov) was not usable: it is JavaScript-gated and returns no chapter text to text fetching, so the hosted verbatim copies above were used instead.
• Notes on currency: the current chapter text dates to the 2019 rewrite and predates Circular 26-22-13 (2022) on appraisal types; where they conflict, this article follows the circular. The current verbatim text of Sections 13.07 and 13.09 through 13.12 was not available; those sections are built from the prior 2019 chapter text, the chapter’s own cross-references, and VA disaster guidance, and each is flagged in the article. The 6-month NOV validity rule comes from the 2019 chapter text and the NOV form; the current Section 13.08 was not verified word for word.

I am a mortgage loan originator, not the VA. This article walks through the VA Lenders Handbook as of the last-reviewed date above. Story illustrations are based on situations I see in my pipeline, and no story describes any one borrower’s file. Only VA determines program requirements, lender requirements vary, and final approval always depends on the lender underwriting your file.