WASHINGTON — The Department of Veterans Affairs has updated its minimum property requirements (MPRs) for VA-backed loans to include stronger mold and habitability standards, reflecting growing awareness of the health risks of mold exposure for veterans and their families.
The updated MPRs require that properties securing VA-backed loans be free of visible mold growth and that any evidence of past or present moisture intrusion be disclosed and addressed before loan closing. VA appraisers are now required to specifically inspect for mold and moisture problems and to note any findings in their appraisal reports.
The updated standards also require that any mold remediation performed to bring a property into compliance with VA MPRs be performed by a certified mold remediation contractor and be accompanied by post-remediation verification testing by an independent industrial hygienist. Documentation of the remediation and testing must be provided to the VA before loan closing.
The VA's updated mold standards reflect the broader recognition that veterans — many of whom have experienced respiratory exposures during military service — may be particularly vulnerable to the health effects of mold exposure. The VA's health care system has seen an increase in veterans presenting with respiratory conditions that may be related to mold exposure in their homes.
For restoration contractors who work in the VA loan market, the updated MPRs create new opportunities. Contractors who are certified under the IICRC S520 standard and who can provide the documentation required by the VA are well-positioned to serve homebuyers and sellers who need to bring properties into compliance with the updated standards.
